2012 (3) TMI 477 - Commission - Customs

Summary

Issues Involved:

1. Admissibility of the application u/s 127B of the Customs Act, 1962.
2. True and full disclosure of duty liability by the applicants.
3. Valuation of imported cranes and corresponding duty liability.
4. Grant of immunity from fine, penalty, and prosecution.

Admissibility of the Application:

The applicants filed a composite application u/s 127B of the Customs Act, 1962, for settlement of their cases. The application was filed after the expiry of 180 days from the seizure of documents, and no SCN was issued at the time of filing. The application was allowed to be proceeded with vide orders dated 23-5-2011.

True and Full Disclosure of Duty Liability:

The applicants admitted a collective additional duty liability of Rs. 1,27,56,868/- and interest of Rs. 13,23,839/-. They submitted that the undervaluation was based on export documents from the US Department of Commerce. The DRI opposed the application, stating that the applicants had not made a true and full disclosure and had deliberately suppressed facts.

Valuation of Imported Cranes and Corresponding Duty Liability:

The DRI recovered private records showing local sale prices of the cranes, which were significantly higher than the declared import values. The DRI determined the differential duty based on these records and Chartered Engineer certificates. The applicants, however, relied on export documents and purchase invoices from the US to support their declared values. The Bench accepted the FOB values declared before the US Customs, resulting in a differential duty of Rs. 1,65,46,762/-.

Grant of Immunity from Fine, Penalty, and Prosecution:

The applicants requested immunity from fine, penalty, and prosecution. The Bench imposed fines and penalties on the applicants and co-applicants but granted immunity from prosecution under the Customs Act, 1962, subject to the condition that if a case is booked against any of the applicants/co-applicants within one year, the immunity will be liable to be withdrawn.

Order:

The Customs duty liability was settled at Rs. 1,65,46,763/-, and the interest was settled at Rs. 25,55,439/-. The fines and penalties imposed were as follows:

- M/s. Bajranglal Vijaykumar: Rs. 12,00,000/- (fine), Rs. 1,80,000/- (penalty)
- M/s. AVI Trexim Pvt. Ltd.: Rs. 1,00,000/- (fine), Rs. 5,80,000/- (penalty)
- M/s. Opel Trade Corporation: Rs. 3,00,000/- (fine), Rs. 65,000/- (penalty)
- Sh. Vijay Kumar Gupta: Rs. 50,000/- (penalty)
- Sh. Sachin Gupta: Rs. 25,000/- (penalty)
- Sh. Karan Gupta: Rs. 25,000/- (penalty)
- Sh. Rajkamal Singh: Rs. 25,000/- (penalty)
- Sh. Mahesh Agarwal: Rs. 25,000/- (penalty)

Immunity was granted from payment of fine and penalty in excess of the amounts specified and from prosecution under the Customs Act, 1962, subject to the conditions mentioned.