RNC FREIGHT MOVERS Vs. CC, (ICD)

JUDGEMENT

(1.) IN these six Appeals, arising out of two impugned Orders, both passed by the Commissioner of Customs, the facts involved are inter -related and as such all the appeals are being disposed of by one single Order.

(2.) 1. Briefly stated the facts are that M/s. Bajaj Machine Tools filed four shipping bills all dated 21.10.1995 under claim of Drawback for export of High Speed Steel (HSS) TOOLS. On the basis of specific information that Bajaj Machine Tools were claiming drawback by exporting 'cheap cast iron drills' by misdeclaring the same as 'HSS tools', the DRI Officers detained one container at Mumbai Port which was found on examination to contain metal drills. The second container which had already been shipped to Dubai on 2.1.1995, was received back from Dubai at Mumbai on 26.11.1995 and was found to contain metal drill. M/s. Geo Chem Lab, after analysis of the samples, opined that the samples were of cast iron. The Officers searched the business premises of M/s. Chatrath International, Customs House Agent, and recovered photocopies of four shipping bills (S/Bs) and connected documents. Shri G.S. Chatrath, proprietor, deposed in his statement dated 13.1.1995 that M/s. RNC Freight Movers were looking after CHA work of export on behalf of his firm and one Shri Vareen Sharma of RNC Freight Movers was authorized to sign the documents on his firm's behalf. Export documents of M/s. Bajaj Machine Tools were also recovered from the premises of RNC Freight Movers. Efforts to locate Bajaj Machine Tools at Chandigarh revealed that the address was a mail message service address and one of the address given to mail service was the address of RNC Freight Movers.

(3.) SHRI Jitendra Singh, learned Advocate, appearing on behalf of M/s. RNC Freight Movers, Vareen Sharma and Navin Sharma, submitted that the Appellant firm did not hold any CHA licence but was acting through other CHA; that during the course of their business operations, they came in contact with one Shri Narender Singh, owner of M/s. Godly India, Ludhiana which was engaged in the manufacture and export of H.S.S. Tools; that they were clearing Narender Singh's consignments for export; that samples were drawn and tested and at no point of time Department objected to such exports; that Narender Singh introduced one Ashok Kumar of Bajaj Machine Tools of Navin Sharma; that an impression was given that Ashok Kumar was very good friend of Narender Singh and had plans to export HSS Tools manufactured by M/s. Godly India in a big way; that Narender Singh gave mandate to the partner of the Appellant that they shall be acting as the agent of Bajaj Machine Tools and should therefore lend office address for helping his friend for speedy processing of the drawback claims; that in this background Ashok Kumar was introduced by the partner of Appellant firm to their Banks. He, further, submitted that all the necessary procedures were followed by them while handling the 4 shipping bills; that the sample was drawn by the Customs Officers; that only after proper examination, evaluation and testing the goods, the same were allowed to be exported by the officers; that Vareen Sharma complied with all the formalities relating to export of goods in good faith and discharged his responsibility as an authorized agent of CHA Chatrath International. The learned Advocate also contended that no effective opportunity to defend the case was afforded to them as copies of documents supplied were not legible; that they had also requested for inspection of certain original documents under their letter dated 6.6.1996; that after a gap of more than 2 years they were told by the Department under letter dated 13.11.1998 to contact specific officers of DRI for inspection of records; that the hearing fixed on 20.7.1999 was sought to be adjourned by them as the documents were still not made available to them; that they filed their preliminary reply dated 26.7.1999 in which it was submitted that all the impugned consignments were received from the factory of Godly India. Ludhiana which was evident from the GR Receipt issued by the Transport; that G.R. Receipt can be further verified from the CRN Slip (CONCOR) which goes to show that the goods were received from Godly India; that their request to cross examine Narender Singh, owner of Single Roadways, concerned clerk of Container Corporation of India and Manager of Megabyte Business and Communication Centre, Chandigarh was not allowed; that they were neither granted any opportunity of cross examination nor was granted fresh hearing or time; to file final reply after grant of an opportunity to inspect the relied upon documents. The learned Advocate also contended that it was necessary for the Department to further investigate as who was Ashok Kumar whose photograph was available in the application for opening of Bank Account; who was Rajender Kumar who used to pick messages from Selz Communication for Bajaj Machine Tools; who was the supplier of the goods, from which factory the goods were loaded and through whom the goods were transported.