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ARIJIT PASAYAT, MUKUNDAKAM SHARMA
Commr. of Customs Preventive – Appellant
Versus
Aafloat Textiles (I) Pvt. Ltd. – Respondent
In the context of this Agreement, the concepts of fraud and locus are integral to understanding the legal implications and the enforceability of the provisions.
Fraud, as discussed, involves deliberate deception with the intent to deceive or cause injury to the other party, often through false representations, concealment, or misrepresentation of material facts. It encompasses acts of trickery or deceit that induce another party to act to their detriment, and it can vitiate legal transactions, agreements, or proceedings. The presence of fraud invalidates the transaction or document, rendering it null and void in the eyes of law, especially when it involves forgery or misrepresentation intended to deceive.
Locus, or locus standi, refers to the legal standing or capacity of a party to bring an action or be heard in a court of law. It determines whether a party has sufficient interest or connection to the subject matter of the dispute to participate in legal proceedings. In the context of this Agreement, establishing locus is crucial for a party to assert rights, challenge validity, or seek remedies related to the subject matter affected by fraudulent activities.
Therefore, within this Agreement, the discussion of fraud underscores the importance of truthful and genuine conduct, and the consequences of engaging in deceptive practices. The discussion of locus emphasizes the necessity for parties to have a legitimate interest or authority to invoke legal rights or obligations under the Agreement, especially when fraudulent conduct may impact the validity or enforceability of the contractual terms.
JUDGMENT
Arijit Pasayat, J.
1. 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'). Challenge before the CESTAT was to the order of Commissioner of Customs who confirmed the duty demand of Rs. 6,69,40,149/- on 9 consignments 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'). The benefit of exemption in terms of Notification No. 117/94-Cus. Dated 27.4.1997 was denied and liability of the goods to confiscation under Section 111(d) and (o) of the Act was upheld. But since the goods were not available, confiscation was not ordered. 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.
2. 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 not valid for
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