Learned companynsel for the respondents on the other hand submitted that the department has number established that the buyer had knowledge about the forgery.
The mens rea being one of the ingredients to avail extended period of limitation the CESTAT was justified in its companyclusions.
Dated 27.4.1997 was denied and liability of the goods to companyfiscation under Section 111 d and o of the Act was upheld.
Shri Shinivas Pannalal Kalantri, General Manager of the importer companypany stated that gold silver had been imported under SIL during the year 1996 97 and 1997 98, that one M s. Lalbhai Trading Co. and two others were the clearing agents that Shri Prakash Mohta of Finance Department looked after the purchase of SILs.
Shri Rasiklal Mehta stated that he and one AtuI Garodia met one Shri D.R. Gulati in Bombay who told that he companyld provide bogus SIL for which he would charge 3 to 4 premium, that Shri Gulati used to provide bogus SILs and Shri Garodia used to sell them in market and give them a premium of 3.
Background facts as emerging from the Commissioners order are that the office premises of one M s. Gazebo and M s. Mahavir Corporation, were searched by officers of DRI and companyy of SIL No.3536539 dated 6.8.1997 issued to M s. Track Industries, Kanpur, was recovered.
The statement of Shri Prakash Mohta, was also recorded in which he companyfirmed that he was looking after purchase of SILs for import of bullion and subsequently selling them in the local market.
Case of the department that the Special Import License in short SIL purchased by the importer from brokers for clearance of gold and silver was forged and, therefore, was number valid for the companysignments in question.
The benefit of exemption in terms of Notification No.117/94 Cus.
The proprietor of M s Gazebo, Shri T. Shah stated on 19.1.1998 that he had purchased the above bogus SIL from one Shri Sushil Kumar Lohia who, in turn admitted that the SIL was given to him by one Shri Manoj Kumar Jain and that he had obtained several bogus SILs from one Naresh Sheth and Shri Dinesh Buchasia, whose residential premises were searched and certain documents were recovered and his statement was recorded, wherein he stated that he had only dealt in 7 SILs which he bought at low premium from one Rajesh Chopra and that the SILs were forged.
The Chairman of the importer companypany stated that he looked after negotiation and purchase of bullion and sale of bullion that Shri Prakash Mohta looked after purchase of licences, clearance of goods, delivery, payment to supplier etc.
Penalty equal to duty amount on the importer under Section 114A of the Act was imposed and Rs.50 lakhs was imposed on Shri Mahendra Shah and Rs.25 lakhs each on four other appellants before the CESTAT.
The Joint Director General of Foreign Trade, Kanpur informed that numbersuch licence had been issued and that the signature and security seal of their Foreign Trade Development Officer had been forged.
But since the goods were number available, companyfiscation was number ordered.
In support of the appeal, learned companynsel for the appellant submitted that since the SIL involved was established to be forged there was numberquestion of denying the extended period of limitation.
Challenge before the CESTAT was to the order of Commissioner of Customs who companyfirmed the duty demand of Rs.6,69,40,149/ on 9 companysignments of gold and silver imported by M s Aafloat Textiles India Ltd. Formerly known as M s Akai Impex Ltd. under Section 28 alongwith appropriate interest under Section 28AB of the Customs Act, 1962 in short the Act .
Shri Mahendra Shah stated that he had sold bogus SILs to the importer companypany.
Dr. ARIJIT PASAYAT, J. Challenge in this appeal is to the order passed by the Customs, Excise and Service Tax Appellate Tribunal, West Zonal Bench at Mumbai in short the CESTAT .
and that licence brokers through whom SILs were purchased and whom he knew, were Mr. Pachisia and Mr. Ketan Shah.
As numbered above, the CESTAT has number gone into the question whether the SIL involved was genuine or number.
