Case Law Details
A. V. Agro Products Ltd. Vs Commissioner of Customs (CESTAT Delhi)
Conclusion: Since there was a clear nexus between the appellant -company and all the co-noticees for the alleged violation of the impugned notification which extended the concessional rate of customs duty of 20% ad valorem provided the imported CPO was meant for use in manufacture of soap, therefore, penalty was leviable under section 112B on the main noticee as well as co-noticees for evasion of customs duty.
Held: Appellant-company was involved in import of Crude Palm Oil [CPO] at concessional rate of Customs Duty while availing the benefit of notification no. 20/2004-Cus dated 16.1.2004 which extended the concessional rate of customs duty of 20% ad valorem provided the imported CPO was meant for use in manufacture of soap. Department, however, gathered an intelligence that imported CPO was never used by them for manufacturing soaps as was prescribed under the said notification but was sold in the open market. Thus alleging the evasion of the aforesaid amount of customs duty that a show cause notice was served upon the appellant proposing the recovery of the aforesaid amount of duty along with interest at appropriate rate and the proportionate penalty. The show cause notice was also served upon the Mr. Lalit Goyal, M/s. Genex Consultant Pvt. Ltd., M/s. A V Agro Products Pvt. Ltd for knowingly and willingly dealing with imported CPO in violation of the condition of the impugned notification thereby causing the evasion of the impugned customs duty. The show cause notice also proposed the entire amount of imported CPO to be confiscated. The said proposal was confirmed vide the order. It was held that the evidence proved that the various tankers which arrived at the factory of noticee no. 1 at different dates during the relevant period had transported some or the other quantity of CPO under respective GRs and form ST 31 of M/s. Genex Foods. This receipts and ST 3 returns were corroborating the statement of Shr. Harjinder Singh of M/s. H.G. Oil Carries against 3 of the appeals. Despite this evidence, the Director of M/s. Genex Foods Pvt. Ltd., opted to not to appear for rebutting the said evidence but to sent a simple letter alleging the show cause notice to be illegal. The statements on record were in due corroboration of the documents which sufficiently established that appellants were knowingly dealing with CPO imported in a clandestine and illegal manner, thereby making the said imported CPO liable for confiscation. As far as M/s. A.V. Agro Products (noticee no. 4 of one of the appellant herein) was concerned, they also opted to reply vide letter instead of joining the personal hearing. The tankers containing CPO as were diverted to M/s. Genex Food Ltd. similarly were diverted to M/s. A V Agro. The receipt register along with respective ST 31 form were available highlighting the involvement of M/s. A V Agro as well as in similar manner as that of M/s. Genex Food Ltd. It was observed that for transporting CPO to Delhi the bills of M/s. Venkuth Sales Corporation, Trinagar Delhi as well as of GRS of M/s. Jaspreet Road Lines of Punjabi Bagh, New Delhi were used and that of M/s. NC Traders, Mayur Vihar, Delhi were used. The investigation revealed that no such firm was found existing at the given address. Except that address of M/s. Jaspreet Road Lines were found to be that of M/s. HG Oil carriers. This finding again when read in light of Sh. Harinder Singh that GR 3 were handed over to him by Sh. Lalit Goyal, proprietor of appellant -company established the clear nexus between all the co-noticees for the alleged violation of the impugned notification including the appellant herein. Thus, penalty has been imposed upon three of the appellants under section 112 B of the Customs Act.
FULL TEXT OF THE CESTAT JUDGEMENT
1. This order disposes off three appeals, order under challenge being commo. The present appeal was earlier disposed of as rejected vide final order no. 52153-52155/2018 dated 5.6.2018. An application praying for restoration of appeal as filed by the appellant was also dismissed vide order of this Tribunal dated 21 February 2019. However, Hon’ble High Court of Delhi vide order dated 22.5.2019, has set aside both the said orders restoring the impugned appeal and directing this Tribunal for a fresh decision in accordance with law. The appeal is accordingly heard.
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