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TMI Blog2023 (4) TMI 454X X X X Extracts X X X X X X X X Extracts X X X X ..... pplied to the appellants. Though it is alleged that all the 162 shipping bills were manipulated and the entire duty forgone has been confirmed, the department has not been able to furnish these documents to the appellant. Needless to say that appellant has to be furnished with all documents relied by department so that they are put to notice to know about the allegation and they are given a fair chance to defend the case. Further evidence relied by the department are statements of few third party exporters. Though the appellant requested for cross examination of these witnesses, the department has not acceded to the request. It is seen that there is complete violation of the principles of natural justice by not supplying the copies of r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs.1,35,87,242/- vide 4 Bills of Entry at concessional rate of duty under the said EPCG licences by availing Customs Exemption Notification No.110/95 dated 05.06.1995. The duty foregone amounted to Rs.29,99,322/-. They later produced documents regarding fulfilment of export obligation which included direct exports by the appellant and also exports made through third parties. On verification it was found that neither the EPCG licence numbers nor the name of the importer namely the first appellant herein were seen endorsed on the shipping bills pertaining to the exports made by third parties. On investigation, it revealed that in few shipping bills endorsements were mentioned only in the quadruplicate copies of the shipping bills and not in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... toms Act, 1962. Penalty of Rs.1 lakh each was imposed on the third party exporters under Section 112 (a) of Customs Act, 1962. Aggrieved by the demand of duty as well as the penalties imposed, the appellants filed appeals before the Commissioner (Appeals) who upheld the same. Hence these appeals. 3. Ld. Counsel Shri S. Sankaravadivelu appeared and argued on behalf of the appellants. It is submitted that the appellants had obtained 4 EPCG licences issued by the Joint Director General of Foreign Trade (JDGFT), Coimbatore for importation of knitting and embroidery machines. The appellants exported directly US$ 32,43,853.34 worth garments and US$ 19,10,190.39 worth garments through third parties. These exports were made under 162 shipping bi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es of the 162 shipping bills cannot confirm the demand merely on the basis of a few shipping bills. Further, the statements recorded did not have any evidentiary value unless corroborated with documents. So also, the appellants have not been allowed to cross examine these witnesses which would also render these statements as not admissible evidences. Other than alleging that the endorsements of the name of appellant as well as the EPCG licence numbers are not properly mentioned in the shipping bills, there is no averment that the exports effected through these shipping bills would not meet the export obligation against the licences issued. Ld. Counsel stressed that the JDGFT was satisfied that the export obligation was met and had issued th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ills which is alleged to have been manipulated by the appellant. Thus, the position is that the relied upon documents (RUD) have not been served to them. Undisputedly, only copies of 8 originals and 4 duplicate shipping bills have been supplied to the appellants. Though it is alleged that all the 162 shipping bills were manipulated and the entire duty forgone has been confirmed, the department has not been able to furnish these documents to the appellant. Needless to say that appellant has to be furnished with all documents relied by department so that they are put to notice to know about the allegation and they are given a fair chance to defend the case. Further evidence relied by the department are statements of few third party exporters. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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