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Issues Involved:
1. Applicability of Section 129D versus Section 124 of the Customs Act, 1962. 2. Adjudication proceedings versus enforcement of the bond. 3. Determination of the value of the imported goods. 4. Imposition of penalty and the requirement of mens rea. Issue-wise Detailed Analysis: Point No. (1): Applicability of Section 129D versus Section 124 of the Customs Act, 1962 The appellant argued that once the consignment was cleared under Section 47 of the Customs Act, the only remedy for the department was to invoke Section 129D of the Act, and not Section 124, unless there was a case of short levy which would require invoking Section 28. The appellant admitted that the consignment contained three machines (one single colour and two two-colour offset printing machines) instead of the declared one four-colour offset printing machine, and these machines required a specific licence. The court referred to conflicting decisions from various High Courts, including the Calcutta High Court, Madras High Court, and the Delhi High Court. The court concluded that the view of the Madras High Court, which agreed with the Calcutta High Court, should be followed. This view held that an order under Section 47 of the Act does not inhibit the jurisdiction under Sections 111, 112, and 113 of the Act. The court also noted that even if the Delhi High Court's view in Jain Shudh Vanaspati Ltd. was followed, the deliberate suppression of facts by the appellant meant that the order under Section 47 did not attach finality to the satisfaction of the proper officer. Point No. (2): Adjudication proceedings versus enforcement of the bond The appellant contended that since a bond was taken at the time of provisional assessment and release, adjudication proceedings could not lie, and the only remedy was to enforce the bond. The court distinguished the present case from previous cases cited by the appellant, such as Grauer & Well (India) Ltd. v. Collector of Central Excise, Baroda, and Karnataka Trading Co., Tiptur v. Collector of Customs, Patna, noting that in those cases, the goods were not available for confiscation. In the present case, the goods were available for confiscation, and therefore, the department was not restricted to the remedy of enforcement of the bond. Point No. (3): Determination of the value of the imported goods The appellant challenged the value determined by the Collector, arguing that the machines did not bear any label, name plate, or inscription. The court noted that the appraisal report by an expert estimated the age of the machines, and the import documents were of no use due to the misdeclaration of description and units. The value of the single colour machine was determined based on the price list circulated by M/s. Indus Candia Erikson & Co., Sweden, and the working sheet attached to the show cause notice showed the manner in which the value was arrived at. The court found no reason to interfere with the Collector's assessment of the value. Point No. (4): Imposition of penalty and the requirement of mens rea The appellant argued that no mens rea was made out to justify the penalty. The court found that the appellant deliberately tried to deceive the customs house by importing three machines (one single colour and two double colour) while declaring the import of one unit of a four-colour machine. The deception involved the question of valuation as well. The court noted that the appellant did not report the discrepancy to the customs house even after the machines were erected. The customs house only became aware of the issue due to the report made by the State Director of Industries. The court concluded that the appellant's actions were deliberate and aimed at deceiving the customs house, justifying the imposition of the penalty. Conclusion: The court found no ground to interfere with the Collector's order and accordingly dismissed the appeal.
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