COSMOS TRADING COMPANY Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) THE appellant has filed this Tax Appeal under Section 130A of the Customs Act, 1962 proposing to formulate the following substantial questions of law for determination and consideration of this Court.

(2.) HEARD Mr. P.R. Nanavati with Ms. D. K. Contractor, learned advocate appearing for the appellant and perused the order passed by the authorities below.

(3.) THE brief facts giving rise to the present Appeal are that the appellant, being engaged in the trading activity, received two consignments from M/s. Bhairavi Exim Pvt. Ltd., under AR -3A No. 6 and AR -3A No. 7 both dated 16 -6 -2002 containing 1,20,000 pieces of scarves to be exported to Dubai. The appellant prepared and submitted AR -4 No. 1003 dated 18 -6 -2002 for 60,000 pieces received under AR -3A No. 7 dated 16 -6 -2002 for the goods meant for export to Dubai. This was present for export examination and some discrepancies were noticed by the officers and, therefore, the remarks on the body of the AR -34 of M/s. Bhairavi Exim Pvt. Ltd., was made that approximately 6000 pieces out of the goods are found prima facie to be defective pertaining to AR -3A No. 7 dated 16 -6 -2002 and the goods were detained for further investigation. The goods pertaining to AR -3A No. 6 dated 16 -6 -2002 were also examined by the Officers. Thereafter, investigation was started and statements of Hemant Jayantilal Shah and Shri Anand Kapadia -Directors of M/s. Bhairavi Exim Pvt. Ltd., were recorded. The statement of Nilesh Bansal was recorded. Based on the evidences which were collected during the course of investigation the adjudicating authority has passed an Order -in -Original on 31 -5 -2004 communicating to the appellant on 18 -6 -2004 with regard to confiscation of 1,20,000 pieces of scarves and giving option to redeem the confiscated goods on payment of redemption fine of Rs. 14 lacs in lieu of confiscation under provisions of Section 125 of the Act and also imposed penalty of Rs. 5 lacs on the appellant under Section 114 of the Act and also imposed penalty of Rs. 2 lacs on the partner of the appellant firm.