KALPENA INDUSTRIES LIMITED Vs. UNION OF INDIA, THROUGH SECRETARY MINISTRY OF FINANCE DEPARTMENT OF REVENUE, NORTH BLOCK, NEW DELHI

JUDGEMENT

(1.) The present writ petition is filed by the Petitioner Company, incorporated under the provisions of the Companies Act, 1956 and engaged in the manufacturing of polyethylene/ polypropylene compound and PVC compound, seeking a writ in the nature of mandamus, directing the Respondent No. 2 to permit the petitioners to crossexamine 11 truck owners, whose statements are relied upon in the show cause notice issued to the petitioner, alleging that the goods imported by the Company have not reached the factory of the petitioner.

(2.) Paragraphs 43.9 to 43.20 of the show cause notice refer to the statements of the transporters and it is alleged that these truck transporters assisted the petitioners company to sell all raw materials under the guise of clearance of finished goods to one M/s. Tara Holdings Pvt. Ltd. (100% EOU) at Kolkata, Howrah (WB) and M/s. Sarla Gems Limited at Kolkata without physical delivery of the same, by providing vehicle numbers and lorry receipts without actually transporting the goods. It is alleged that these transporters have assisted M/s. KIL to conceal their illicit sale of raw materials in guise of clearances of finished goods to M/s. Tara Holdings. It is also alleged that these transporters have concerned themselves in storing, depositing, removing, selling and purchasing the duty free imported goods which they knew and had reasons to believe that such goods are liable for confiscation under the Act and invite penalty under section 112 of Customs Act, 196

(3.) Based on the aforesaid statement, the showcause notice ask the petitioners to show cause as to why action should not be initiated against them to the following effect : (i.e. as per para 44 of the show cause notice) -