SUMIT WOOL PROCESSORS Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) THERE are 63 appeals and 63 stay applications and one COD application which arise from Order -in -Original Nos. 83/2011/CAC/CC/BKS, dated December 23, 2011, 9/2012/CAC/CC/BKS, dated February 27, 2012, 15/2012/CAC/CC/BKS, dated March 22, 2012 and 16/2012/CAC/CCIBKS, dated March 28, 2012 passed by the Commissioner of Customs (Adjudication), New Customs House, Mumbai. Since the issues involved in all these appeals are common, they are taken up together for consideration. The appeals were heard on January 28, 2013 and March 14, 2013 and the orders reserved. As regards the COD application, considering that the reasons stated for the delay in filing the appeal are satisfactory, we allow the application for condonation of delay.

(2.) A case of overvaluation of export goods to avail of undue export benefits in the form of the DEPB scrips fraudulently and utilisation of such fraudulently obtained the DEPB scrips was investigated by the Directorate of Revenue Intelligence (DRI in short). The investigation pertained to fraudulent exports of textile fabrics made by M/s. Nidhi Textiles, M/s. Milan Exports, M/s. Madhuri Impex Pvt. Ltd., Madhuri Synthetics, M/s. Mahavir Synthetics, M/s. Laxminath Exports, all merchant -exporters of Surat, by inflating the FOB value of exports several times their actual value and obtaining the DEPB scrips against such exports. The investigation also covered exports made by M/s. Rajat Pharmachem Ltd. who exported pharmaceutical formulations to Singapore by inflating the value of exports and obtaining ineligible DEPB scrips. These DEPB scrips were sold to third parties after obtaining endorsement of transferability from the DGFT authorities. The transferees imported goods against such DEPB scrips and availed of the duty credit available under these scrips. The fraudulent availment of credit resulted in huge loss of revenue to the exchequer. The details of these cases are as under:

(3.) ON behalf of Nidhi Textiles and its proprietor, Mr. Rajeev Kumar Tulsyan, the learned counsel made the following submissions: