9911796707
TMI Blog2000 (11) TMI 199X X X X Extracts X X X X X X X X Extracts X X X X ..... ign currency of US $ 1,50,000/- which he had carried from Delhi to Mumbai by Sahara Airlines Flight No S-2/507. 2.On the same day, the DRI officers at New Delhi apprehended Shri Firoz Batliwala, brother of Shri Khan Shakeel Abubacker at the Delhi Airport and search of his residence resulted in recovery of Rs. 3,35,000/- which was seized under a panchnama. Certain incriminating documents were recovered and seized from the residence of Shri Riyaz Abedin Sheikh. 3.During the course of investigation, statements of various persons were recorded by the DRI under the provisions of Section 128 of the Customs Act, 1962. Shri Gulkhan deposed that he had travelled to New Delhi by the morning flight of Jet Airways and carried two pay orders of Cent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the foreign currency purchased by him in the name of Tiruchi Enterprises was out of the sale proceeds in Indian rupees of foreign currency smuggled out of India by unknown persons. His statement was again recorded after a lapse of five months on 11-12-1997 when he was under detention at Central Prisons in which he stated that management of M/s. R.R. Sen Bros, New Delhi (the appellant herein ) and others were aware that Tiruchi Enterprises, Bombay was a non-existent fictitious firm; that the appellant (who is a FFMC) was aware that he (Firoz Batliwala) was not Manager or Proprietor or employee of Tiruchi Enterprises and for this reason, the FFMCs were charging higher rate per dollar for selling the same to Tiruchi Enterprises; that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in paragraphs 3, 9, 16, 17, 19, 20(i) and 26 of the Memorandum of Instructions issued by the RBI under Section 73(3) of the FERA, 1973, hence rendering the appellants liable to penalty. 8.During the course of investigation, the DRI officers directed the Centurian Bank not to make payment of Rs. 47,58,000/- covered by two demand drafts, one for Rs. 18,30,000/- issued by Jan Kalyan Sehkari Bank Ltd. and other for Rs. 29,28,000/- issued by Punjab Maharashtra Cooperative Bank Ltd. to the appellant from whom Tiruchi Enterprises had obtained foreign currency of US $ 1,30,000/- 9.A show cause notice dated 3-11-1997 was issued to Shri Gulkhan, Sh. Abubacker, Sh. Riyaz Abedin Sheikh, Sh. Firoz Batliwala, M/s. Tiruchi Enterprises, Sh. Sajid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the DRI from the bankers of the appellants, has been held to represent sale proceeds of foreign currency which had been sold by Sh. Feroz Batliwala and Shri Sajid Warsi, to two persons who had paid to them, rates higher than the prevailing market rates as the buyers wanted to export the same illegally in return for gold smuggled into India. The further finding is that Tiruchi Enterprises is a fictitious firm floated by the above mentioned two persons with the sole purpose of running a hawala racket and that these two persons had knowledge of the source of the funds for obtaining the different pay orders which have been seized from the bankers of the appellants. The finding that there was a hawala racket is against other noticees namely Sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as seen from para 5.1. of the impugned order. However, we find that, throughout the proceedings, the appellants have claimed US $ 1,30,000 sold by them to M/s. Tiruchi Enterprises. This is amply clear from the written submissions dated 7-5-1999 filed before the Commissioner of Customs after the personal hearing on 26-4-1999. In para (vi), the appellants have clearly challenged the liability to confiscation of both Indian currencies in the form of demand drafts as well as the foreign currency of $ 1,30,000. Even in the appeal memorandum filed before us, the alternative prayer is for direction for release of the seized currency sold by them to Tiruchi Enterprises. In view of our finding that US $ 1,30,000 is not tainted money, we accept the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
