- (1.) This order shall dispose of C.W.P. No.22055 of 2012 - M/s CIS Exports Pvt. Ltd. v. Union of India and others and C.W.P. 22104 of 2012 - M/s Barun Textile Processors v. Union of India and others as the issues involved in the aforesaid petitions are similar. The facts in brief are extracted from C.W.P. No.22055 of 2012.
(2.) In C.W.P. No.22055 of 2012, the petitioner has sought quashing of Order No.95-96/10-CUS dated 7.4.2010 (Annexure P.14) and Order in Original No.34/ACE/JJ/2009 dated 6.4.2009 (Annexure P.12) and also show cause notice No.VIII (10) Hqrs/ACE/SIIB/58/CIS/2007/Pt./8100 dated 20.8.2008 (Annexure P.4) being arbitrary and unconstitutional and beyond jurisdiction.
(3.) The petitioner- Company was issued show cause notice on 20.8.2008, i.e. Annexure P.4 by Commissioner of Customs (Export) respondent No.2 whereupon order Annexure P.12 dated 6.4.2009 was passed against the petitioner, thus, interalia creating liability of Rs.67,42,724/- for fraudulent availment of duty drawback in the following terms:- "1. I hold that the Drawback amounting to Rs.67,42,724/- (Rs. Sixty seven Lakhs, forty two thousand, seven hundred and twenty four only) availed on Central Excise portion was fraudulently availed by the party and thus not admissible to them. I, therefore, order its recovery under Rule 16 and 16A of the Customs and Central Excise Duty Drawback Rules 1995 read with Section 75 (1) of the Customs Act, 1962. 2. I also order the recovery of interest on the above amount under Section 75 A(2) of the Customs Act, 1962 read with Section 28AA of the Act ibid. 3. I also deny the Drawback amounting to Rs.4,92,889/- (Rs. Four lacs ninety two thousand eight hundred and eighty nine only) of the Central Excise portion under Rule 16 and 16A of the Customs and Central Excise Duty Drawback Rules 1995 read with Section 75(1) of the Customs Act, 1962. 4. I also order that the amount of Drawback Rs.14,24,565/- (as on 19.8.2008) lying frozen in the Drawback Account of the party in Punjab National Bank, New Customs House, New Delhi be appropriated against the above demand under Rule 16 and 16A of Customs and Central Excise Duty Drawback Rules 1995 read with Section 75 (1) of the Customs Act, 1962. 5. I also impose a penalty of Rs.60,00,000/- (Rs. Sixty Lacs Only) on M/s CIS Exports, (P) Ltd. Ludhiana, Rs.60,00,000/- (Rs. Sixty Lacs Only) on M/s Braun Textile Processors, Ludhiana and Rs.60,00,000/- (Rs. Sixty Lacs Only) Sh. R.K. Goyal under Section 114 of the Act ibid. 6. I also impose a penalty of Rs.1,00,00,000/- (Rs. One Crore Only) on M/s CIS Exports, (P) Ltd. Ludhiana, Rs.75,00,000/- (Rs. Seventy Five Lacs Only) on M/s. Braun Textile Processors, Ludhiana and Rs.1,00,00,000/- (Rs. One Crore Only) on Sh. R.K. Goyal under Secton 114AA of the Act ibid." ;