B.G. GOSWAMI Vs. CC, ICD

JUDGEMENT

(1.) THIS stay application has been filed by Shri B.G. Goswami, Prop. of M/s Neelam Exports and M/s Neelam Exports for staying recovery of penalty of Rs. 2 lacs each imposed on them.

(2.) ALTHOUGH the stay application is filed for staying the recovery of penalty of Rs. 2 lacs and the appeal is also filed for the same, however, in the prayer made in the appeal petition besides setting aside the penalties, it is also prayed that the recovery of duty drawback amounting to Rs. 20,60,348/ - and redemption fine of Rs. 2 lacs on M/s Neelam Exports may set aside. Since the stay application has been filed only for staying the recovery of Rs. 2 lacs. The applicant will have to pre -deposit the entire amount of duty drawback for hearing the appeal.

(3.) FOR staying the recovery of penalty, it was argued for the applicants that M/s Neelam Exports have exported the goods under the four shipping bill and out of the four, they have already received the export proceeds amounting to US 1,71,700/ - from the buyer M/s Hawkers Bay Sports Wear, UAE. The learned Counsel also stated that the remaining amount has also been received after receipt of the show cause notice. However, he could not produce any evidence to that effect. It was, therefore, argued that since they have already received the entire sale proceeds of the export consignments, therefore, the allegation of exporting substandard clothes claiming higher drawback does not stand on the basis of repatriation of the export price as declared in the shipping bills. It was also argued that M/s Neelam Export got the fabrics purchased from M/s Krishna Enterprises and M/s Cosy Fashion and the fabrics were got stitched through Mr. Pawan Kumar. Shri B.G. Goswami (the present appellant) paid Rs. 72 to Rs. 75 lacs to Shri Pawan Kumar for the goods exported by M/s Neelam Exports. The goods were packed in packing material purchased from M/s Matta Packaging Industries and M/s Suraksha Plastic. The bills for purchase of these goods were produced before the investigating officer. Payments were also made to M/s Krishna Enterprises and M/s Cosy Fashion out of the exports proceeds. Therefore, the entire allegation of the department that they have exported substandard material and over invoiced the value of the goods is not substantiated. Therefore, unconditional stay from recovery of the penalty may be given.