{"id":187505,"date":"2011-02-03T00:00:00","date_gmt":"2011-02-02T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/commissioner-vs-in-on-3-february-2011"},"modified":"2019-03-24T10:15:58","modified_gmt":"2019-03-24T04:45:58","slug":"commissioner-vs-in-on-3-february-2011","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/commissioner-vs-in-on-3-february-2011","title":{"rendered":"Commissioner vs In on 3 February, 2011"},"content":{"rendered":"<div class=\"docsource_main\">Gujarat High Court<\/div>\n<div class=\"doc_title\">Commissioner vs In on 3 February, 2011<\/div>\n<div class=\"doc_author\">Author: Harsha Devani,&amp;Nbsp;Honourable H.B.Antani,&amp;Nbsp;<\/div>\n<pre>   Gujarat High Court Case Information System \n\n  \n  \n    \n\n \n \n    \t      \n         \n\t    \n\t\t   Print\n\t\t\t\t          \n\n  \n\n\n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t\n\n\n \n\n\n\t \n\nTAXAP\/201\/2011\t 4\/ 4\tORDER \n \n \n\n\t\n\n \n\nIN\nTHE HIGH COURT OF GUJARAT AT AHMEDABAD\n \n\n \n\n\n \n\nTAX\nAPPEAL No. 201 of 2011\n \n\n \n \n=========================================\n \n\nCOMMISSIONER\nOF CUSTOMS - Appellant(s)\n \n\nVersus\n \n\nBRIJESH\nAGARWAL - Opponent(s)\n \n\n========================================= \nAppearance\n: \nMS AMEE\nYAJNIK for\nAppellant(s) : 1, \nNone for Opponent(s) :\n1, \n=========================================\n \n\t  \n\t \n\t  \n\t\t \n\t\t\t \n\nCORAM\n\t\t\t: \n\t\t\t\n\t\t\n\t\t \n\t\t\t \n\nHONOURABLE\n\t\t\tMS. JUSTICE HARSHA DEVANI\n\t\t\n\t\n\t \n\t\t \n\t\t \n\t\t\t \n\n                              and\n\t\t\n\t\n\t \n\t\t \n\t\t \n\t\t\t \n\nHONOURABLE\n\t\t\tMR. JUSTICE H.B.ANTANI\n\t\t\n\t\n\n \n\n \n \n\n\n \n\nDate\n: 03\/02\/2011 \n\n \n\n \nORAL\nORDER<\/pre>\n<p>                                               (Per :\n<\/p>\n<p>HONOURABLE MS. JUSTICE HARSHA DEVANI)<\/p>\n<p>1.\t\tIn<br \/>\nthis appeal under section 130 of the Customs Act, 1962 (the Act), the<br \/>\nCommissioner of Customs, Kandla has challenged common order dated<br \/>\n24th March, 2006 made by the Customs, Excise and Service<br \/>\nTax Appellate Tribunal (the Tribunal) proposing the following<br \/>\nquestions:-\n<\/p>\n<p>\tWhether<br \/>\n\tthe Advance Licence obtained under DEEC Scheme and against which<br \/>\n\tfulfillment of Export obligation was on the basis of<br \/>\n\tmisstatements\/misdeclaration by submitting forged\/fake export<br \/>\n\tdocuments before the DGFT is to be treated as a valid and legal<br \/>\n\tdocument?\n<\/p>\n<p>\tWhether<br \/>\n\tthe import made on the authority of Advance licence<br \/>\n\tobtained\/transferred on the basis of forged\/fake\/manipulated export<br \/>\n\tdocuments are lawful imports and exempted from payment of duty under<br \/>\n\tNotification No.204\/92-Cus dated 19.05.1992?\n<\/p>\n<p>\tWhether<br \/>\n\tthe importer as defined in Section 2(26) of the Customs Act, 1962<br \/>\n\tincludes the licence holder for the purpose of Notification<br \/>\n\t204\/92-Cus dated 19.05.1992 being any person holding himself to be<br \/>\n\tthe importer and who had obtained the Advance licence for duty free<br \/>\n\timport subject to fulfillment of export obligation but for<br \/>\n\ttransferring the licence to a third party.\n<\/p>\n<p>\tThe<br \/>\n\tletter and spirit of the impugned order is contrary to the settled<br \/>\n\tprinciples of law.  The order would convey a meaning that a<br \/>\n\tfraudster, after successfully perpetrating the fraud, sells the<br \/>\n\tfruit of the fraud to a third party and this transfer nets him<br \/>\n\tdouble enrichment &#8211; that a pecuniary gain which also<br \/>\n\tsimultaneously washes away his crime.  This raises a Question of<br \/>\n\tlaw, whether a licence obtained by fraud is a non-est from the<br \/>\n\tbeginning or at least from the time the fraud is committed or its<br \/>\n\tsubsequent legal use, makes the licence clean despite the discovery<br \/>\n\tof fraudulent elements subsequently?\n<\/p>\n<p>\tWhether<br \/>\n\tthe confiscation of imported goods under section 111(d) of the<br \/>\n\tCustoms Act, 1962 imported duty free on the basis of licence<br \/>\n\tobtained under DEEC Scheme and against which fulfillment of export<br \/>\n\tobligation was shown fraudulently to the DGFT for obtaining<br \/>\n\tendorsement of transferability of the licence is legal vis-a-vis the<br \/>\n\tgoods having become prohibited goods in terms of Section 2(33) of<br \/>\n\tthe Customs Act, 1962 read with Rule 14 of the Foreign Trade<br \/>\n\t(Regulation) Rules, 1993.\n<\/p>\n<p>\tWhether<br \/>\n\tthe Tribunal is right in law in setting aside duty of Rs.19.27,404\/-<br \/>\n\tdemanded under Section 28 of the Customs Act, 1962, interest of<br \/>\n\tRs.5,01,125\/- charged at the rate of 24% in terms of para<br \/>\n\t128(A)(iii)(a) of the Export-Import Policy 1992-97 arising due to<br \/>\n\tthe omission and commission on the part of the licence holder for<br \/>\n\tgetting the advance licence transferred on the basis of forged\/fake<br \/>\n\texport documents, and penalty of Rs.25,00,000\/- imposed under<br \/>\n\tSection 112(a) on M\/s. Rajnarayan Jwalaprasad as also penalties of<br \/>\n\tRs.25,00,000\/- on Shri Sailesh Agarwal, Rs.5,00,000\/- on Shri<br \/>\n\tPrakash Agarwal, Rs.5,00,000\/- on Shri Brijesh Agarwal,<br \/>\n\tRs.2,00,000\/- on M\/s. Kuppi Uttpadan, Rs.2,00,000\/- on Shri<br \/>\n\tBalkishan Devidayal and Rs.2,00,000\/- on M\/s. ACT Shipping Ltd.,<br \/>\n\timposed under Section 112(a) of the Customs Act, 1962.\n<\/p>\n<p>2.\t\tHeard<br \/>\nthe learned senior standing counsel for the appellant.\n<\/p>\n<p>3.\t\tAs<br \/>\nnoted hereinabove, this appeal arises out of common order dated 24th<br \/>\nMarch, 2006 passed by the Customs, Excise and Service Tax Appellate<br \/>\nTribunal.  Insofar as the present respondent is concerned, the<br \/>\nadjudicating authority had only levied penalty under section 112(a)<br \/>\nof the Act which has been set aside by the Tribunal.\n<\/p>\n<p>4.\t\tAgainst<br \/>\nthe common order dated 24th March, 2006 passed by the<br \/>\nTribunal, the appellant herein had preferred Tax Appeal No.1263 of<br \/>\n2006 in respect of M\/s. Rajnarayan Jwalaprasad, one of co-noticees.<br \/>\nThe said appeal has been decided vide judgment and order dated 27th<br \/>\nJanuary, 2011 wherein the role of each of the noticees including the<br \/>\nrespondent herein has been discussed in detail.  In the<br \/>\ncircumstances, it is not necessary to set out the facts and<br \/>\ncontentions in detail.\n<\/p>\n<p>5.\t\tFor<br \/>\nthe reasons stated in order dated 27th January, 2011<br \/>\npassed in Tax Appeal No.1263 of 2006 in the case of Commissioner of<br \/>\nCustoms vs. Rajnarayan Jwalaprasad, it is  not possible to state that<br \/>\nthe Tribunal has committed any legal infirmity so as to give rise to<br \/>\na question of law.  The appeal is accordingly dismissed.\n<\/p>\n<p>\t\t\t\t\t\t\t(<br \/>\nHarsha Devani, J. )<\/p>\n<p>\t\t\t\t\t\t\t(<br \/>\nH.B. Antani, J. )<\/p>\n<p>hki<\/p>\n<p>\t\t   \u00a0\u00a0\u00a0<\/p>\n<p>\t\t   Top<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gujarat High Court Commissioner vs In on 3 February, 2011 Author: Harsha Devani,&amp;Nbsp;Honourable H.B.Antani,&amp;Nbsp; Gujarat High Court Case Information System Print TAXAP\/201\/2011 4\/ 4 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD TAX APPEAL No. 201 of 2011 ========================================= COMMISSIONER OF CUSTOMS &#8211; Appellant(s) Versus BRIJESH AGARWAL &#8211; Opponent(s) ========================================= Appearance : MS AMEE [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[16,8],"tags":[],"class_list":["post-187505","post","type-post","status-publish","format-standard","hentry","category-gujarat-high-court","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Commissioner vs In on 3 February, 2011 - Free Judgements of Supreme Court &amp; 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