ASHWANI KUMAR JAIN Vs. CEGAT

JUDGEMENT

(1.) These three writ petitions arise of a common order dated 25-6-2001 passed by Respondent No. 1 on three applications, each filed by each of the petitioners in respect of three appeals pending before Respondent No. 1. The facts are identical and the above petitions were heard together. Therefore it is convenient to dispose them of by a common judgment.

(2.) Shri Ashwani Kumar Jain claims himself the Managing Director of M/s. Agemo Leather Components (P) Ltd. and Director of M/s. Sukumar Chemicals (P) Ltd. According to the petitioners they are engaged in export of ready-made garments and electronic wrist watches etc. The export worth Rs. 13 crores was made by M/s. Agemo Leather Component (P) Ltd. during the period 27-6-1998 to 29-8-1998. Similarly, M/s. Sukumar Chemicals (P) Ltd. made export from 1-12-1997 to 31-8-1998 of around Rs. 27 crores. The further allegation is that these amounts were received through Banker.

(3.) On getting information, the Central Excise Preventive Officer of the Central Excise and Customs, Meerut-II made investigation on 14-9-1998 at the business premises of the petitioner. During investigation the department opened three containers which were duly sealed with Customs one time lock seal and shipping line seal was found outside the Customs bonded area ready for dispatch. The investigating/search party of the department brought these containers to the Customs bonded area and were opened on 15-9-1998 in the presence of Shri Ashwani Kumar Jain, the petitioner in Writ Petition No. 979 of 2001. After opening the containers it was found that the containers were filled with old, used, soiled and torned clothes. Some of the clothes in Container No. II contained labels like made in U.S.A., Taiwan and Hong Kong etc. Whereas in the shipping bill goods were shown as shirts etc. During search operation of the premises of the petitioner cartons containing similar kind of clothes were found. The department seized the goods found during search operation in the premises of the petitioner as well as contents of the containers. Thereafter proceedings were initiated against the petitioners. The respondent No. 2 after issuing show cause notice and hearing the petitioners by the common order in respect of three petitioners levied penalty of Rs. 5 crores on Ashwani Kumar Jain. Penalty to the tune of Rs. 1.75 crore plus Rs. 75 lacs were levied on M/s. Agemo Leather Components (P) Ltd. and a sum of Rs. 1.25 crore as penalty was levied against M/s. Sukumar Chemicals (P) Ltd. Aggrieved against the aforesaid common order dated 5-10-2000 passed by the Commissioner, Customs, three separate appeals bearing No. E/17/19/2001-NB were preferred by the petitioners before respondent No. 1. The applications on identical ground were filed in those appeals for waiver of pre-deposit of penalty levied by the Commissioner of Customs. The respondent No. 1 by the impugned order has granted partial waiver. It directed Shri Ashwani Kumar Jain to make pre-deposit of rupee one crore towards penalty levied on him, to make deposit of Rs. 75 lacs and Rs. 20 lacs out of the penalties levied on M/s. Agemo Leather Component (P) Ltd. and Rs. 50 lacs by M/s. Sukumar Chemicals (P) Ltd.