2013 (10) TMI 854 - AT - Customs

Redemption Fine Waiver of Pre-deposit - Whether the duty element and redemption fine was discharged by M/s. Chetali Printing Press Held that - There was mis-declaration and undervaluation of import made in the name of Chetali Printing Press - the order role of Manoj Jain and Ajit Jain connected with Surana Exim P. Ltd. was brought out by Revenue - Overseas inquiry revealed undervaluation of import - Chartered Engineer s report also went against appellant proving under valuation - Shri Manoj Jain admitted undervaluation Pre-deposits were ordered to be made in installments - Failure to deposit any of the installments shall render this order vacated and the department shall be at liberty to realize its entire dues Partial stay granted.

Issues:
1. Levy of penalty on M/s. Chetali Printing Press
2. Recoverability of duty and redemption fine
3. Mischievous conduct and mis-declaration in import
4. Directions for deposit of amount by M/s. Chetali Printing Press

Levy of Penalty on M/s. Chetali Printing Press:
The appellant argued that the penalty imposed on M/s. Chetali Printing Press was unwarranted as they allowed another entity to import an old printing machine to India for a minimal remuneration. The appellant contended that the levy of Rs. 6,10,000/- as penalty, Rs. 6,06,328/- as duty, and Rs. 5 lakhs as redemption fine on M/s. Chetali Printing Press should not be recoverable. The Revenue opposed these arguments, leading to a hearing where both sides presented their case. However, it was noted that none of the parties could confirm whether the duty and redemption fine had been discharged by M/s. Chetali Printing Press.

Recoverability of Duty and Redemption Fine:
Upon examining the role of M/s. Chetali Printing Press in the import process, it was revealed that the appellant had acted at the direction of individuals who created fictitious concerns to facilitate the import. Mischievous conduct, mis-declaration, and undervaluation of imports were identified, with evidence pointing towards the involvement of specific individuals in orchestrating the undervaluation. The appellant was directed to deposit Rs. 2 lakhs in two installments to comply with the order, failing which the department could recover the entire dues. The appellant was also required to provide proof of deposit to the Adjudicating Authority promptly.

Mischievous Conduct and Mis-Declaration in Import:
The judgment highlighted the deceptive practices involved in the import process, where fictitious entities were created to facilitate undervaluation and mis-declaration of imports. Specific individuals were identified as the masterminds behind these activities, with evidence from statements and reports corroborating the mischievous conduct. The involvement of the individuals in orchestrating the undervaluation was established through overseas inquiries, chartered engineer's reports, and admissions of undervaluation.

Directions for Deposit of Amount by M/s. Chetali Printing Press:
In light of the factual findings, M/s. Chetali Printing Press was directed to deposit Rs. 2 lakhs in two equal installments by specific deadlines. Failure to comply would result in the vacation of the order, allowing the department to recover the dues. The appellant was instructed to provide proof of deposit to the Adjudicating Authority promptly. Additionally, the order was to be included in the appeal record of related cases for future reference, and the Revenue was directed to present the factual aspects before the Bench during related hearings.

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