SRI SAIRAM EXPORTS Vs. REGISTRAR, CESTAT, CHENNAI

JUDGEMENT

(1.) These appeals are by three different assessees, questioning the correctness of a common order passed by the Customs Excise and Service Tax Appellate Tribunal, directing them to make a pre -deposit of a portion of penalty levied upon them. Heard Mr. S.P. Harikrishnan, learned counsel for the appellants and Mr. A.P. Srinivas, Senior Panel counsel, who takes notice for the respondents.

(2.) Upon receipt of an information that inferior quality of T -shirts were being exported and duty drawback was claimed in excess by one M/s. Sindhu Textiles, which is the appellant in C.M.A. No. 2165 of 2015, the Docks Intelligence Unit of the Department of Customs, detained the export consignments covered by eight shipping bills, all dated 24 -11 -2005 and 25 -11 -2005. Thereafter, the Proprietor of a concern, by name, M/s. Sri Sairam Exports, which is the appellant in C.M.A. No. 2163 of 2015, appeared before the Docks Intelligence Unit and claimed ownership of the goods. He claimed that he had floated M/s. Sindhu Textiles and had filed shipping bills.

(3.) Therefore, search of the premises of M/s. Sindhu Textiles was conducted. On the basis of the enquiries and searches conducted, it was found that M/s. Sri Sairam Exports had purchased the consignment from one M/s. J.M. Fashions, which is the appellant in C.M.A. No. 2164 of 2015. Therefore, a show cause notice dated 24 -5 -2006 was issued to the partners of all the three companies. The show cause notice eventually resulted in an Order in Original dated 24 -8 -2007. By the said order, the Commissioner of Customs fixed the value of the goods covered by the eight shipping bills at Rs. 26,44,500/ - instead of the declared value of Rs. 1,82,33,878.10. He also ordered the confiscation of the goods, but allowed redemption on payment of a fine of Rs. 3,00,000/ - (Rupees three lakhs). The duty drawback to the extent of Rs. 12,22,923/ - allegedly availed unduly by the appellants, was directed to be recovered with interest from M/s. Sri Sairam Exports. A penalty of Rs. 2,00,000/ - (Rupees two lakhs) was imposed upon M/s. J.M. Fashions; a penalty of Rs. 3,00,000/ - (Rupees three lakhs) was imposed upon M/s. Sri Sairam Exports and a sum of Rs. 2,50,000/ - (rupees two lakhs fifty thousand) was imposed upon M/s. Sindhu Textiles. Different penalties were also imposed upon the individual partners.