Cus - Even though importers have no role to play in forging of licences, fact is goods were imported without proper import licence - s. 111 contravention - Penalties rightly imposed: CESTAT
By TIOL News Service
NEW DELHI, AUG 25, 2017: THE DRI investigated into the intelligence that wireless transmitting/receiving apparatus, satellite communication equipment etc were being imported against forged import licenses purported to have been issued by the Wireless Planning and Coordinating Wing (WPC) of the Ministry of Communications and Information Technology, Government of India.
Notification No.71-Cus dated 25.09.1954, as amended, requires submission of such import licenses for import of wireless transmitting apparatus and trans-receivers.
The intelligence further indicated that such forged import licenses were being fabricated by M/s Alliance Strategies Ltd,(ASL) New Delhi. WPC import licences available in the files recovered from the office of ASL were forwarded to DoT, WPC Wing to verify the genuineness of the same. The DoT confirmed that they had not issued such licences. Such verification reports revealed that M/s Aricent Technologies, M/s Hughes Communications and M/s Hughes Network System India, had used import licences for import of telecom equipments which were not issued by DoT.
Upon conclusion of investigation, SCNs were issued to these importers and ASL.
In adjudication, the seized goods imported using the forged WPC licences were confiscated and penalties were imposed on the importers. Penalties were also imposed on M/s Alliance Strategies Ltd as well as various employees of M/s Alliance Strategies.
The appellants are before the CESTAT.
It is argued on behalf of M/s Aricent Technologies Holdings Ltd and M/s Hughes Communication India Ltd that no penalty can be imposed on them under Section 112(a) of the Customs Act, 1962 since they were not involved in the activity of forging WPC import licences. They claimed that they were under the bonafide belief that the licences were genuine and submitted the same for import of goods.
The Bench observed -
"…The goods imported by the appellants require an import licence from WPC Cell of DoT. The licence produced by them and on whose basis the goods were cleared, have been found to be forged and fraudulent. Even though M/s Aricent & M/s Hughes have no role to play in forging of the WPC licences, the fact remains that goods were imported without proper import licence which becomes a contravention of Section 111…"
Extracting liberally from the Apex Court decision in the case of Aafloat Textiles (I) P Ltd - 2009-TIOL-42-SC-CUS, the CESTAT upheld the penalty imposed on M/s Aricent Holdings Ltd, M/s Hughes Communication India Ltd and M/s Hughes Network Systems India Ltd.
As regards the penalties imposed on various persons associated with M/s ASL and the appeals filed in this regard, the Bench inter alia observed -
"It stands established as per the investigation carried-out by DRI that WPC import licences required for import of certain telecom equipments were fabricated and forged by ASL in their offices. It is seen that S/Sh Ashok Gupta, Jarnail Singh Chaudhary, Sanjay Sachdeva and Ms Anuradha Diwan have played their part in fabricating WPC licences which were handed-over and used for import of equipments. The various individuals have also admitted their role in the fraud in their respective statements…"
Noting that the reasons outlined in detail by the adjudicating authority for imposing penalties on various functionaries of ASL were fully justified, the same were upheld.
The impugned orders were upheld and all the appeals were dismissed.
(See 2017-TIOL-3090-CESTAT-DEL)
