Dinesh Sharma Vs Commissioner of Customs (Preventive) (CESTAT Delhi)
Held that show cause notice and impugned order both confirmed allegation of undue export benefit relying heavily on the statement which was not supported by any corroborative evidence cannot be sustained.
Facts- The brief issues involved in these appeals are whether (i) the appellants are bona fide exporters or simply freight forwarders, (ii) the appellant(s) are bogus firms, and (iii) whether the appellant(s) overvalued the exported goods for availing undue Drawback/DEPB benefits.
Conclusion-
The show cause notice and the impugned order rely heavily on statements which are not corroborated; the main person who is alleged to be a freight forwarder was questioned continuously for four days and he has retracted the statements at the immediate opportunity.
The order is issued in violation of the principles of natural justice; Some appellants were not given opportunity to inspect the relied upon documents and some have given a very minimal time; request for cross examination have not been acceded to by the adjudicating authority; The two persons who were cross examined did not support the allegations of the Revenue.
Even when the Department heavily relied upon the statements for proving the case, adjudicating authority has not examined the statements in terms of section 138B of Customs Act, 1962. The reports from Customs Overseas Information Network, relied upon by the Revenue are general in nature and inconclusive.
FULL TEXT OF THE CESTAT DELHI ORDER
The brief issues involved in these appeals arising from common impugned order are whether (i) the appellants are bona fide exporters or simply freight forwarders, (ii) the appellant(s) are bogus firms, and (iii) whether the appellant(s) overvalued the exported goods for availing undue Drawback/DEPB benefits.
2. Shri Dinesh Sharma, proprietor of M/s. Balaji (Appeal no. C/445/2009) are in the export of textiles from year 2001; they have obtained IEC certificate and obtained permission for transaction in foreign exchange and have accordingly opened up current accounts in Punjab National Bank etc; they have exported fabric, apparel, made ups to CIS countries and availed DEPB and drawback benefits. Other importers who are similarly placed are as below:
