ORIENT ARTS & CRAFTS Vs. COMMR OF CUS PREV

JUDGEMENT

(1.) (a) M/s. Orient Arts & Crafts. Bhadohi, Varanasi, U.P., are a partnership firm engaged in manufacture and export of handmade woollen carpets, etc., registered as a Small Scale Industrial Unit and recognised as an Export House. Somewhere in the year 1991, some general information appears to have been received by the Customs authorities, about misuse of Import/Export Pass Books, issued to the manufacturers of carpets, etc., and accordingly, the Marine and Preventive Wing of the Commissioner (Preventive), Mumbai took up investigations into the imports made by the appellants against an Import-Export Pass Book No. 0011522, dated 2-2-89. The statements of partner of M/s. New Bright Shipping Services, were recorded who is alleged to have admitted to be acting as Clearing Agents for several carpet manufacturers and gave details of clearance made for and on behalf of various carpet manufacturers and has claimed to have dealt with, in all, ten consignments for the appellants, out of which six are reported to have been cleared and handed over to one Mr. Pravinchandra Shah, whereas four other consignments were lying in docks awaiting clearance. He stated that all the importers used to send the original documents directly but other supporting documents were being supplied by Mr. Pravinchandra Shah, who also paid the CHA charges and other expenses in cash and gave instructions as to delivery of the goods or dispatch to the godowns. All such importers including Mr. Badruddin Ansari of the appellants-firm, had given standing instructions to deliver all consignments of dyes, formic acid and PVA to the said Mr. Pravinchandra Shah of M/s. Vipul Dyes. No documentary evidence to substantiate that any instructions were received from the appellants, or that he had actually effected delivery of the consignments to said Mr. Pravinchandra Shah, are alleged to have been produced. Mr. Pravinchandra Babubhai Shah of M/s. Vipul Dyes is reported to have admitted having purchased DEEC Pass Books from various carpet manufacturers, including the appellants, on payment of premium so far as import of formic acid, PVA and Dyes are concerned, and is reported to have received goods under four consignments of the appellants. No such DEEC Pass Books were produced by him. Mr. Pravinchandra Shah subsequently has retracted his statement. No statement of Mr. Surerndra Dubey, the alleged broker through whom the Pass Books were said to have been purchased by Mr. Pravinchandra Shah, appears to have been recorded. Mr. Prakash Sakulnarayan Dubey of M/s. Super Road Fines, who allegedly issued the bogus transport receipts, is reported to have accepted issuance of the Lorry Receipts and he has reportedly given the numbers and dates for issue of such receipts. Four consignments imported by the appellants lying in Docks, were seized and are still awaiting release.

(2.) After hearing both the sides and considering the submissions, we find that -