H. KUMAR GADECHA Vs. CC

JUDGEMENT

(1.) ALL the appeals are being disposed of by a common order as they arise out of the same impugned order passed by Commissioner of Customs, Ahmedabad vide which he has confirmed customs duty amounting to Rs. 4,39,99,534/ - (Rupees four crore thirty nine lakh ninety nine thousand five hundred and thirty four only) against M/s. H. Kumar Gems Inc., Ahmedabad along with imposition of identical penalty upon them in terms of the provisions of Section 112a/114a of the Customs Act, 1962. In addition, goods imported by the said appellant stands confiscated with a fine in lieu of confiscation to the tune of Rs. 15 crores. In addition personal penalties stand imposed upon the other appellants in terms of the provisions of Section 112(b) of the Customs Apt, 1962.

(2.) AS per the facts on record, M/s. H. Kumar Gems Inc. imported 12 consignments of gold bars and 3 consignments of silver during the period 24/5/1996 to 20/6/1997 by availing the benefit of concessional rate of duty in terms of Notification No. 117/94 -Cus. Dt. 27/4/1994. The said notification exempted gold and silver imported to India, on production of Special Import Licence (hereinafter referred to as SIL) issued in terms of Export and Import Policy, April, 1992 -March, 1997. The benefit of the said notification was extended to the appellant at the time of import, on the production of 22 SILs submitted by the appellant and the assessments were finalized accordingly.

(3.) AS a result of detailed investigations, it was found that the said appellant M/s. H. Kumar Gems Inc. purchased 22 SILs from one Ms. Sunita Goel of Ahmedabad, against consideration. The said Ms. Sunita Goel was working as a broker and had possessed the SILs through Ms. Vidya Mahadik, who in turn got it from Mr. Shrenik Mehta. Mr. Shrenik Mehta procured the licences from one Mr. Sanjay Rai, who in turn, claimed to have been got the same from one Mr. Ramesh Chandra. The statements of all these persons recorded during the investigations are to the effect that they were acting as a bonafide broker/purchaser of the SILs, which are transferable in the market and before acquiring the same, they have verified the fact of issuance of these licences by the office of the DGFT, which published a monthly bulletin in which the licence numbers are disclosed. However, the Department sought information from the office of DGFT, who vide their letter dt. 24/2/1998 addressed to the Asst. Commissioner, Customs Air -cargo Complex, Ahmedabad disclosed that the said SIL numbers were actually cancelled/defaced by their office. It was also disclosed in the said letter that the said SILs were not available in the office and were removed from the relevant files and as such the date of cancellation and the names of the parties to whom the SILs were issued cannot be made available. The said letter of DGFT is the main ground for holding that the imports had been effected against the defaced/cancelled SILs.