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TMI Blog2024 (6) TMI 403X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the case. As far as the merits of the matter is concerned, there are statements recorded of a few witnesses and the statements recorded of the Applicants themselves. One Dushyant Ashok Soni was concerned with D.B. Gold He has stated that the Applicants had never given him any gold for processing work. On the day of search i.e. on 12.6.2023 the Applicant Hemang had telephonically instructed him not to go to the office premises of D.B. Gold. This witness denies of having received any part of the gold i.e. any part of 37 kgs of gold which was imported by the Applicants. The Applicants wanted him to sign the vouchers without any supply of the gold. The sum and substance of this discussion is that 37 Kgs of gold which was imported by the Applicants under that Scheme has disappeared; either it is sold in the local market or it was misappropriated by the Applicants. It is quite obvious that the gold after processing was not exported. Therefore, the Applicants are liable to pay the duty. The matter does not rest there, but the gold itself was liable to be confiscated under Section 111 (o) of the Customs Act. Since the gold is not found, the further steps for confiscation cannot be tak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ary to exempt certain material imported into India against the valid advance authorization for an exemption of the duty on such goods; provided the conditions were satisfied. The Applicants had obtained permission vide the authorization letter dated 4.11.2022 having import validity upto 4.11.2023 and the export validity upto 4.5.2024. According to the investigating agency, the importer had to process the imported articles and was duty bound to export the finished products within a period of 120 days from the actual receiving of those articles in India. In the present case the Applicants firm was granted authorization to import the plain gold bar (purity 0.995) upto 150 kg. The Applicants imported 37 kg of gold from 27.12.2022 upto 25.1.2023. Inspite of that, the gold which was imported was not used for any processing and it was not exported at all. There was no trace of that gold. There was evasion of duty because if the gold was not exported within that period, a duty was leviable on such import with penalty. That was not done and, therefore, their investigation was initiated. A raid was conducted on 12.6.2023 at the office of the Applicants firm and thereafter various statements ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ii. The entire action of the investigating agency is premature and illegal. iv. He submitted that the Applicants have paid the duty to the tune of Rs. 50 lakhs and they are further willing to pay Rs. 75 Lakhs without prejudice to their rights and contentions. v. There are provisions under Section 137 of the Customs Act whereby the offence can be compounded. Since the Applicants are showing willingness to pay the major part of the duty quantified by the investigating agency, the Applicants custodial interrogation and their arrest is not necessary and that they are willing to pay the balance amount of the duty in a time bound manner. 6. Learned counsel appearing for the investigating agency relied on certain provisions of the Customs Act. He submitted that the offence under Section 135 (1) (a) and 135 (1) (b) are made out in the present case. The gold which is imported, on which the duty is not paid which is more than Rs. 50 Lakhs, can be confiscated. Learned counsel relied on Section 111 (o) of the Customs Act. The Sections 135 (1) (i) (A) and 135 (1) (i) (B) and Section 111 (o) of the Customs Act reads thus : 135. Evasion of duty or prohibitions. (1) Without prejudice to any action ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... obligation period with the import conditions from the date of clearance of each consignment against authorization was to be fulfilled within 120 days. 8. Learned counsel submitted that this is clear provision whereby outer limit of 120 days for exporting the processed articles from the date of import of the consignment is laid down. The period cannot be extended. He, therefore, submitted that the reliance of the learned counsel for the Applicants on the extension at Annexure-A is completely misplaced. All that particular authorization mentions is that the export obligation period was extended from 4.5.2024 to 4.11.2024; but, that has to be read with import permission which was given to them on 4.11.2022. In that case, the import validity was 4.11.2023 and the export period was upto 4.5.2024. 9. Learned counsel for the investigating agency submitted that though this authorization extended the export obligation period is from 4.5.2024 to 4.11.2024, it cannot relate to the last date of the import of the consignment. It does not wipe out the requirement of exporting the processed gold within 120 days from the date when they were received in India. In the present case, the Applicants s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Applicants. The Applicants wanted him to sign the vouchers without any supply of the gold. 15. The Applicants in their statements could not give satisfactory answers about the gold and they could not produce that gold. 16. Another witness Sagar Jain was concerned with Ronak Jems Private Limited. He has stated that he had not purchased any imported gold bar from the Applicants firm but he had purchased local/standard gold bars from them during the period of December, 2022 to March, 2023. 17. The sum and substance of this discussion is that 37 Kgs of gold which was imported by the Applicants under that Scheme has disappeared; either it is sold in the local market or it was misappropriated by the Applicants. It is quite obvious that the gold after processing was not exported. Therefore, the Applicants are liable to pay the duty. The matter does not rest there, but the gold itself was liable to be confiscated under Section 111 (o) of the Customs Act. Since the gold is not found, the further steps for confiscation cannot be taken and for this very purpose the Applicants custodial interrogation is necessary. The Applicants have taken wrong advantage of the scheme of the Government; t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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