PREMIUM INTERTRADE PVT LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) RULE. Respondents waive service. By consent of the parties petitions are taken up for final hearing.

(2.) THESE writ petitions under Article 226 of the Constitution seek to challenge the order dated 6-4-2002 passed by the Commissioner of Customs, Mumbai directing attachment of the premises bearing Nos. 6/1 and 6/2 situated at Lloyds Garden, Prabhadevi, Mumbai, purchased in the name of M/s. Premium Intertrade Pvt. Ltd. and Vinita Lakhotia respectively towards pending recovery of Government dues from M/s. Om Traders, M/s. Tropical Exotics and M/s. Prime Agricom under Sub-clause (ii) of Clause (c) of Section 142 (1) of the Customs Act, 1962 read with Customs (Attachment of Properties of Defaulters for Recovery of Government Dues) Rules, 1995. Writ Petition No. 1394 of 2002 is filed by M/s. Premium Intertrade Pvt. Ltd. and its Director Vinita Lakhotia. Writ Petition No. 1395 of 2002 is filed by Vinita Lakhotia in her individual capacity.

(3.) BRIEFLY stated the facts of the case are that on the basis of the information CIU/acc detected a duty drawback fraud to the tune of Rs. 50. 14 crores committed by one Nawal Kishore Bangad through three firms viz. M/s. Om Traders, M/s. Prime Agricom and M/s. Tropical Exotics. Nawal Kishore Bangad and Shri Giriraj Das Bangad are two partners of M/s. Om Traders and M/s. Prime Agricom while Smt Sangeeta Bangad is wife of Nawal Kishore Bangad the sole proprietor of M/s. Tropical Exotics. Vinita Lakhotia is the sister of Sangeeta Bangad and sister-in-law of Nawal Kishore Bangad. The statement of Nawal Kishore Bangad was recorded under Section 108 of the Customs Act on various dates. Nawal Kishore Bangad admitted that he had forged documents and rubber stamps which were used for certification of invoices for advance payment and making of shipping bills. He admitted that on the basis of the forged shipping documents duty drawback was claimed by the said three firms as follows : M/s. Om Traders Rs. 16,61,22,704/m/ s. Prime Agricom Rs. 17,39,57,985/m/ s. Tropical Exotics Rs. 1,61,39,979/ accordingly on 10-11-1997 show cause-cum-demand notice under Rule 16 of the Customs and Central Excise Duties (Drawback) Rules, 1995 were issued by the department demanding the duty drawback amount along with interest @ 20% p. a. towards the payments made to the above said three firms. Pursuant to the show cause notices Nawal Kishore Bangad appeared before the Customs Department and in his statement recorded on 20-11-1997 under Section 108 he had admitted that he had given Rs. 4. 50 crores to Vinita Lakhotia and her firms/companies, out of Rs. 50. 14 crores which he claimed fraudulently by submitting forged shipping documents, from the Customs Department. He also admitted that Vinita Lakhotia utilised this money to purchase two flats at Lloyds Gardens, Prabhadevi, Mumbai in her name and in the name of her company M/s. Premium Intertrade Pvt. Ltd. She also paid Rs. 90. 93 lacs towards the purchase price of office premises at 125 Free Press House, Nariman Point, Mumbai 400021 out of the fraudulent drawback money given by him to her. He showed his willingness to transfer the said amount to Customs and to write a letter to Vinita Lakhotia to transfer the said money to the Customs Department.