2002 (2) TMI 256 - AT - Customs

Summary

Issues Involved:
1. Determination of the actual importer.
2. Eligibility for duty exemption under Notification No. 39/96-Cus.
3. Misdeclaration of goods.
4. Liability for duty demand and penalties.
5. Confiscation of goods.

Issue-wise Detailed Analysis:

1. Determination of the Actual Importer:
The case revolves around the importation of computers by M/s. Siemens Nixdorf Information Systems Ltd. (appellants) for the Naval Stores Depot, Kochi. The Bills of Entry were filed by the Controller of Materials, Naval Stores Depot, Kochi, but the goods were imported by M/s. Siemens Nixdorf Information Systems Ltd. The Tribunal noted that the Bill of Entry and Airway Bills were in the name of the Naval Stores Depot, Kochi, and no amendments were made to the manifest. Thus, the Tribunal concluded that the Naval Stores Depot, Kochi, should be considered the importer, not M/s. Siemens Nixdorf Information Systems Ltd.

2. Eligibility for Duty Exemption under Notification No. 39/96-Cus:
The appellants claimed duty exemption under Notification No. 39/96-Cus for computer parts. However, the goods were found to be complete personal computers, which did not fall under the specific use category listed in the notification. The Tribunal upheld the Commissioner's finding that the goods were not eligible for the duty exemption benefit, as the notification was specific to certain categories of goods.

3. Misdeclaration of Goods:
The goods were declared as computer parts in the Bill of Entry and Airway Bill, but upon examination, they were found to be personal computers. The Tribunal agreed with the Commissioner that this constituted a misdeclaration. The original invoice from M/s. Siemens Nixdorf Information Systems Ltd. did not specify that the goods were personal computers, supporting the charge of misdeclaration.

4. Liability for Duty Demand and Penalties:
The Commissioner had initially imposed a duty demand of Rs. 7,19,202/-, confiscated the goods, and allowed redemption on payment of a fine of Rs. 25,000/-. A penalty of Rs. 5,000/- was also imposed on the appellants. The Tribunal, however, found that since the Naval Stores Depot, Kochi, was the importer, the duty liability and penalties should not be imposed on M/s. Siemens Nixdorf Information Systems Ltd. The Tribunal set aside the penalty imposed on the appellants under Section 112(a) of the Customs Act, 1962, as they were not the importers.

5. Confiscation of Goods:
The goods were confiscated under Sections 111(d) and 111(m) of the Customs Act, 1962, for being imported in contravention of ITC regulations and for misdeclaration. The Tribunal upheld the confiscation but directed that the duty and any further action should be assessed considering the Naval Stores Depot, Kochi, as the importer.

Conclusion:
The Tribunal allowed the appeal, setting aside the penalties and duty demand imposed on M/s. Siemens Nixdorf Information Systems Ltd. It directed the Commissioner to reassess the Bill of Entry considering the Naval Stores Depot, Kochi, as the importer and take appropriate action based on their letter dated 18-4-2001. The Tribunal emphasized the need for clear identification of the importer and proper application of customs law in such cases.