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3. The case of the revenue as reflected in the show cause notice was that an information was received to the effect that M/s Shivam Enterprises, New Delhi and M/s Shyam Exports, New Delhi had obtained 62 Replenishment (REP) licences from DGFT, New Delhi for the import of gold on the basis of forged bank realization certificates and Export Shipping Bills and they had utilized these licences for import of approximately 350 kgs. of gold, without payment of customs duty resulting in loss of revenue to the extent of Rs. 5.23 crores to the government. The enquiries revealed that these licences were obtained on the strength of forged documents, namely Bank Realisation Certificates and Registration-cum-Membership Certificates of Gem & Jewellery Export Promotion Council and even Import Export Code number was obtained on the basis of such forged documents. Enquiries from Bank of Nova Scotia, New Delhi revealed that they had issued gold to the appellant M/s K.K. Exports against 12 licences issued in the name of M/s Shivam Enterprises and M/s Shyam Exports. It also transpired during the enquiry that some licences of these two concerns were utilized by the appellant M/s Kailash Jewellery House, New Delhi and the appellant M/s M.D. Overseas Limited, and also one M/s Deep Exports whose appeal is said to be pending in the West Zonal Bench of the Tribunal at Mumbai.

4.1 It was alleged in the show cause notice that Mr. Rajiv Khanna along with Mr. Vinay Sethi alias Sanjay Sethi conspired for getting gold REP licences of 'F' scheme issued by the DGFT authority which were subsequently sold to save customs duty at the time of import of gold made by the buyers. The fraud was perpetrated through false and fabricated documents created by Mr. Rajiv Khanna, Sanjay Sethi alias Vinay Sethi, and, Smt. Rachna Gulati who participated by writing signatures of other persons on such forged and fabricated documents. It was alleged that Mr. Rajiv Khanna, knowingly, deliberately and intentionally used Sanjay Sethi alias Vinay Sethi as his "front man" for creating the fictitious documents, obtaining licences from DGFT authority and sale thereof to the prospective buyers and to avoid detection at a future stage. He financed all the expenses incurred towards committing the fraud and named the bogus front concerns as M/s Shyam Exports & M/s Shivam Enterprises respectively and arranged the photographs of unknown persons for affixing the same on the application forms for getting the import-Export Code. Mr. Sanjay Sethi alias Vinay Sethi, during the whole operation was fraudulently and actively involved in committing the fraud causing a substantial loss to the revenue and worked as a front man of Mr. Rajeev Khanna and arranged all details right from contriving forged documents to sale of licences. It was alleged that Shri Sukumaran Kumar Jain, the sole proprietor of the appellant M/s New Kailash Jewellery House, Shri Satish Bansal, Director of the appellant M/s M.D. Overseas Ltd. and Shri Neeraj Kapoor, partner of the appellant M/s K.K. Exports and others named in the show cause notice, knowingly concerned themselves in the sale/purchase of the REP licences procured through forgery.