ENGEE INDUSTRIAL SERVICES (PVT.) Vs. COMMISSIONER OF CUS.

JUDGEMENT

(1.) THE above appeal arises out of the order dated 14th July, 1995 passed by the Commissioner of Customs (Preventive), New Customs House, Bombay extending the period for issue of show cause notice by a period of six months from 15 -7 -1995, in terms of the proviso to Section 110(2) of the Customs Act, 1962. Since the application for stay of operation of the order is not pressed by the learned Counsel, we dismiss the same as withdrawn and proceed to hear the appeal itself with the consent of both the sides.

(2.) THE facts of the case are that the appellant herein is a private company carrying on, inter alia, the business of ship breaking and for that purpose, it had imported a ship called 'Ocean Blessing'. Nikhil Alloy Steels Ltd. is also a private company carrying on inter alia, the business of manufacture and sale of iron and steel products from its factory at Raigad (Maharashtra). Sh. Vinod Goel and Smt. Sujata Goel are the directors of both these companies.

(3.) ON 16 -1 -1995, the officers of Marine and Preventive Wing of Customs (Preventive) Collectorate, Bombay visited the factory premises of M/s. Nikhil Alloy Steels Ltd. and noticed various items of foreign origin viz., Tyres, HDPE Granules, Compressors, Carbon Black etc. for which no documents could be produced by the company's representative and hence, these items were detained and handed over under Supratnama to the Manager of the Company on 19 -1 -1995. The office premises of M/s. Nikhil Alloy Steels and the residential premises of Sh. Vinod Goel were searched on 16 -1 -1995; various documents were recovered from the office and unexplained cash of Rs. 3 lakhs was also seized from the residence of Sh. Vinod Goel. During the course of further investigation, other premises were also searched and goods of foreign origin were seized. Further investigation revealed that Sh. Vinod Goel had informed his staff over the telephone, when the search operation was being carried out at the factory premises of M/s. Nikhil Alloy Steels Ltd. that four trucks carrying goods of foreign origin had already left Mangalore for Bombay and he directed the staff to divert the trucks to Panvel. Subsequently, such diverted goods were also recovered and seized.