UNION OF INDIA Vs. ADANI EXPORTS LTD

JUDGEMENT

(1.) Leave granted.

(2.) Challenge in this appeal is to the order passed by a learned Single Judge of the Gujarat High Court, setting aside the order passed by the Appellate Tribunal for Foreign Exchange (for short Tribunal) dated 4th January, 2006 in Appeal Nos. 199, 500 and 501 of 2006 whereby the application for dispensation of pre-deposit was rejected.

(3.) Background facts in a nutshell are as follows:- On the basis of the alleged violation of certain provisions of the Customs Act 1962 (in short the Act) notices were issued to certain noticees including the present respondents primarily on the ground of mis-declaration as to the description and narration of the goods imported and on the ground of over-invoicing so far as valuation is concerned and consequentially misusing foreign exchange. Show-cause notices were issued by the adjudicating authority and on consideration of the submissions and replies filed, the orders in original were passed by the Commissioner of Customs (hereinafter referred to as the Commissioner). The orders passed by the original authority were challenged by the respondents before the Customs, Excise and Service Tax Appellate Tribunal, Bangalore (in short CESTAT). Notices were also issued under Foreign Exchange Management Act, 1999 (in short Management Act). The Additional Director General passed orders in terms of the Foreign Exchange Regulation Act, 1973 (in short the Regulation Act) which has been repealed along with the provisions of the Foreign Exchange Management Act 1999 (in short the Management Act). The order was passed after considering the replies and submissions in response to the show-cause notices. The adjudicating authority found the noticees guilty of the charges and in terms of the powers conferred under Section 50 of the Regulation Act read with Section 49(3) and 49(4) of the Management Act imposed the following penalties: