ASHOK DESAI Vs. COMMISSIONER OF CUSTOMS, KANDLA

JUDGEMENT

(1.) M /s. Silicon Industries (I) Limited (SIIL for short) imported 12 consignments of Phenol, Vinyle Acetate Monomer and Aniline oil etc. during the period from 11 -2 -2002 to 2 -7 -2002. The SIIL claimed benefit of exemption in terms of Notification No. 51/2000 -Cus., dated 27 -4 -2000. The notification is meant for importation of materials which are required to be utilized to fulfill the export obligation. Investigation taken up by the departmental officers revealed that SIIL had sold the goods to various customers and did not fulfill the export obligations. Investigations also revealed that two appellants in this case namely Shri Ashok Desai and Shri N.K. Didwania had created artificial sale to SIIL and misused the benefits of exemption Notification, Shri Vijay Navani, the third appellant in this case assisted the SIIL in identifying CHA, transportation of goods, obtaining licenses and in disposal of goods. After investigations and issue of show cause notice and adjudication process, the goods have been held to be liable to confiscation, demand for customs duty of more than Rs. Three Crores has been confirmed against SIIL with interest as applicable, penalty equal to duty has been imposed on SIIL. Further, penalties have been imposed on all the three appellants before us. SIIL has not filed any appeal and as per the records and as per the advocate Shri Mansingka, the Director of SIIL has passed away.

(2.) SHRI . S.N. Kantawala, learned advocate for appellants Shri. N.K. Didwania and Shri Ashok Desai submitted following points : -

(3.) HE also submitted that in the statement of Shri Mansingka no evidence is available to show that high sea sale was not genuine.