9911796707
TMI Blog2023 (9) TMI 665X X X X Extracts X X X X X X X X Extracts X X X X ..... le with regard to such activities. Though, the impugned order has stated that the appellant had earned 50% of profit out of the export proceeds, but did not elaborate any findings with regard to the actual role played by the appellant in irregular exportation of the goods - in absence of proper substantiation of the case, especially with regard to the appellant herein, the penal provisions contained in Section 114 ibid, cannot routinely be invoked for penalising the appellant. The Indian bank s role is confined only for scrutinization of documents to be submitted by the exporter and to forward the same to the Russian designated bank. It has also been provided that if no discrepancy report is received from the Russian Bank within seven da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... adjudicating authority has imposed penalty of Rs.57,39,594/- and Rs.1,00,00,000/- respectively on the appellants under Section 114 of the Customs Act, 1962. 2. The case involved in these appeals relates to overvaluation of export of goods made by M/s Sri Balaji Overseas, Mumbai for availment of higher rate of drawback. The department had conducted inquiry in to the matter and recorded the statements from various persons and based on the relied upon documents, the adjudged demands were confirmed on different persons, including imposition of penalties on the appellants. 3. Learned Advocate appearing for the appellant Shri Sanjay D. Bhalerao submitted that no specific investigation was conducted at the appellant s end and no statement ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 03.06.2011 passed in the case of IDBI Bank Ltd. Vs. Commissioner of Customs (Export), New Delhi 2011 (274) E.L.T. 439 (Tri.). 5. Heard both sides and examined the case records. 6. We find that the department had not issued any summon(s) to the appellant Shri Sanjay D. Bhalerao for recording of statement(s) with regard to irregular exportation of the subject goods and for ascertaining his specific role with regard to such activities. Though, the impugned order has stated that the appellant had earned 50% of profit out of the export proceeds, but did not elaborate any findings with regard to the actual role played by the appellant in irregular exportation of the goods. Further, we also find that the proceedings were initiated by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bank. Even amendments in LC were to be got registered with RBI. Only after the registration by the RBI, the exporter could export the goods. (e) The Indian Bank would scrutinize the Documents presented by the exporter (Shipping Bill. Bill of Lading, etc.) as per the terms conditions of LC and send the same on collection basis to the Russian designated Bank, which was to report discrepancy, it any, within seven working days. If no discrepancy was reported within seven days then the documents were considered compliant and claim was lodged with RBI. 8. On reading of the above clarification, it makes the position clear that the Indian bank s role is confined only for scrutinization of documents to be submitted by the exporter and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ho is involved in unlawful activities with regard to the goods liable for confiscation. In the present case, since the appellants role as a banker has started after physical exportation of the goods, more particularly after issuance of LEO and physical movement of goods from the port of export, it cannot be said that they were involved in improper exportation of goods and consequently, would be exposed to the penal liabilities provided under Section 114 ibid. 9. In view of the foregoing discussions, we do not find any merits in the impugned order, in so far as it has imposed penalties under Section 114 ibid, on the appellants. Therefore, by setting aside the impugned order, the appeals are allowed in favour of the appellants. (Operat ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
