2000 (1) TMI 778 - AT - Central Excise

Summary

Issues:
- Confirmation of duty under Sec. 28(1) of the Customs Act
- Imposition of penalty under Sec. 112(a) of the Customs Act

Confirmation of Duty under Sec. 28(1) of the Customs Act:
The appellants appealed against an order confirming duty of Rs. 79,968 under Sec. 28(1) of the Customs Act, relating to the import of plastic extruded fabricated pieces/parts for electronic typewriters. The original invoice value of the goods was found to be DM 3646.60, but the appellants declared it as 702.10 DM, resulting in a reduced customs duty payment. The Managing Director (M.D.) of the appellant firm instructed the supplier to show the lower price on the invoice, as evidenced by recovered documents and statements. The appellants argued that the reduced value was due to a previous short supply issue with the same supplier, claiming a bona fide belief and citing legal precedents. However, the Tribunal found that the appellants intentionally misrepresented the value to evade duty, distinguishing the case from the legal precedents cited. The Tribunal upheld the duty confirmation, rejecting the appellants' arguments.

Imposition of Penalty under Sec. 112(a) of the Customs Act:
In addition to the duty confirmation, penalties of Rs. 50,000 each were imposed on M/s. Vikas General Carbon Ltd. and the M.D. under Sec. 112(a) of the Customs Act. The appellants contended that there was no mala fide intention to violate the law, attributing the misdeclaration to a mistaken belief and seeking leniency based on legal decisions. The Revenue, however, presented evidence showing the M.D.'s direct involvement in instructing the fabrication of the invoice to show a lower value. The Tribunal noted that the legal precedents cited by the appellants did not align with the deliberate misrepresentation in this case. Consequently, the penalties were upheld, and the appeals against their imposition were dismissed.

In conclusion, the Tribunal found no merit in the appellants' arguments regarding the duty confirmation and penalty imposition. The deliberate misrepresentation of the imported goods' value to reduce customs duty payment, guided by the M.D.'s instructions, led to the rejection of the appeals. The Tribunal's decision upheld the duty confirmation and penalties, emphasizing the intentional nature of the misdeclaration and the lack of applicability of the legal precedents cited by the appellants in this context.