2003 (5) TMI 388 - Commission - Customs

Summary

Issues:
Settlement of dispute under Section 127B of the Customs Act, 1962 based on undervaluation of imported goods.

Analysis:
The applicants, importers of Light fittings and Chandeliers, filed Bill of Entry for assessment of goods which were found undervalued. Revenue alleged undervaluation based on investigation and comparative prices of identical imports. Show Cause Notice demanded rejection of declared value, revised assessable value, confiscation of goods, and imposition of penalties. The Commissioner confirmed the facts but noted the applicants did not admit duty liability fully. The case was heard, and the Commission observed the disclosure was not full and true. The applicants later amended their application, admitting duty liability of Rs. 12,80,188 as per the Show Cause Notice. The Commission found the amendment to be a full and true disclosure, meeting the requirements of Section 127B of the Customs Act. Consequently, the Commission allowed the application to proceed under Section 127C, directing the applicants to pay the admitted duty liability within 30 days. The Commission emphasized compliance with reporting requirements under Section 127F.

This judgment revolves around the settlement of a dispute under the Customs Act concerning undervaluation of imported goods. The case involved allegations of undervaluation based on investigation and comparative pricing, leading to a Show Cause Notice with multiple demands and penalties. The applicants initially did not admit their full duty liability, prompting the Commission to observe the lack of full and true disclosure. However, upon amending their application to admit the duty liability as per the Show Cause Notice, the Commission found the disclosure to be complete and genuine, meeting the statutory conditions for settlement under Section 127B. As a result, the Commission allowed the application to proceed under Section 127C, with a directive for timely payment of the admitted duty liability. The judgment underscores the importance of accurate and complete disclosure in settlement proceedings under the Customs Act to ensure compliance with statutory provisions and reporting obligations.