1995 (12) TMI 125 - AT - Customs

Summary

Issues Involved:
1. Mis-declaration of quantity and value of imported goods.
2. Wrongful claim of concessional assessment under Exemption Notification No. 267/89.
3. Import without valid import license.

Detailed Analysis:

1. Mis-declaration of Quantity and Value of Imported Goods:
The case revolves around the mis-declaration of the quantity and value of stamping foils imported by M/s. Poonam Leather Industries (PLI). The original documents recovered during a search showed a higher value than what was declared to customs. The show cause notice dated 12-8-1992 alleged that the quantity and value of the goods were mis-declared, leading to an attempted evasion of customs duty amounting to Rs. 14,18,012. The original invoice from the German supplier showed a value of DM 54112.35 (equivalent to Rs. 9,48,922.15), while the invoice filed with the bill of entry showed a value of DM 27056.16 (equivalent to Rs. 4,74,461.37). The Tribunal found that the appellants had attempted to evade customs duty by presenting a lower value invoice.

2. Wrongful Claim of Concessional Assessment under Exemption Notification No. 267/89:
The appellants claimed exemption under Notification No. 267/89, which was conditional. The Tribunal examined whether the stamping foils were eligible for exemption as they were claimed to be used in the leather industry. The appellants argued that the foils were used for pigment finishes in leather. However, the product catalog and the original invoice did not indicate any use in the leather industry. The adjudicating authority concluded that the stamping foils were not used in the leather industry and thus were not eligible for concessional duty. The Tribunal upheld this finding, stating that the wrongful claim for concessional duty was proven.

3. Import Without Valid Import License:
The goods were imported under the Open General License (OGL) scheme, which required them to be used in the leather industry. The Tribunal found that the goods were not intended for use in the leather industry, as evidenced by the product catalog and the lack of certification from the German supplier. The adjudicating authority observed that the importers had mis-declared the intended use of the goods to avail the benefits of the OGL scheme without a valid import license. The Tribunal upheld this finding, concluding that the import without a valid license was established.

Penalty and Redemption Fine:
The Collector of Customs imposed a redemption fine of Rs. 10 lakhs and a penalty of Rs. 2 lakhs each on PLI, Shri Dada Saheb Shinde, and Shri Lalit Ajmera. The Tribunal considered the appellants' plea regarding the high redemption fine and the penalties. It noted that the goods had suffered long storage and demurrage. Consequently, the Tribunal reduced the redemption fine from Rs. 10 lakhs to Rs. 5 lakhs. The penalty on Shri Dada Saheb Shinde was waived, and the penalty on Shri Lalit Ajmera was reduced from Rs. 2 lakhs to Rs. 1 lakh.

Conclusion:
The Tribunal upheld the charges of mis-declaration of quantity and value, wrongful claim of concessional assessment, and import without a valid license. It reduced the redemption fine and penalties, providing partial relief to the appellants. The appeals were disposed of in these terms.