COMMISSIONER OF CUSTOMS (IMPORT) Vs. S C GUPTA

JUDGEMENT

(1.) Heard Mr. Jetly in support of this Application and Mr. Sahu for Respondent No. 8. Ms. Saria appears for Respondent No. 14.

(2.) This is an application by the Commissioner of Customs (Import) for a reference to the High Court for determination of certain questions of law arising out of the decision of the Customs, Excise and Gold Control Appellate Tribunal from its order dated 9th June 2000.

(3.) There are seven companies of Rastogi Group of Delhi. Consequent upon certain information received by the Revenue, investigation was carried out by the Directorate of Revenue Intelligence. It was revealed that the group of seven companies was being controlled by four brothers and that the companies had effected duty free imports of various raw-materials which were cleared by them in the local market though they were supposed to export the final products. The exports were shown to have been effected to certain parties in Nepal which were found to be fake transactions. Therefore, notices were issued under Sec. 124 of the Customs Act, 1962 read with proviso of Sec. 28(1) and Sec. 143-A thereof for determining payment of customs duty. The show cause notice was challenged by the respondents before the Commissioner of Customs by filing an appeal. The Commissioner of Customs, Excise and Gold (Control) by his order dated 30th July, 1996 discharged the show cause notice, holding that the same is bad in law. The Central Board of Excise and Customs, however, reviewed the order on 9th July, 1997. An appeal was carried against the said order to the Central Excise and Gold (Control) Appellate Tribunal (CEGAT for short) which allowed the appeal by its order dated 9th June, 2000.