1998 (6) TMI 332 - AT - Customs

Summary

Issues: Import of finished bearings instead of semi-finished bearings, misdeclaration of goods, clearance under notification 116/88, false endorsement on bill of entry, manufacturing processes undertaken, expert opinion, supporting manufacturer's role, certificate submitted by the appellant.

The appellant filed two appeals against the Order-in-Original passed by the Collector of Customs, Bombay, concerning the import of bearings. The goods were found to be misdeclared and fully finished instead of semi-finished as per the advance license. The first appeal related to three consignments where Glacier bearings were imported instead of the declared semi-finished bearings. The second appeal involved imported bearings declared as semi-finished but were fully finished, cleared under notification 116/88 with a false endorsement on the bill of entry. Investigations revealed minimal processing on the imported bearings, contrary to the declared manufacturing processes.

The appellant claimed to import semi-finished bearings for further processing and export, but investigations showed minimal manufacturing activities, mainly cleaning and greasing, by the supporting manufacturer. The appellant listed various manufacturing processes to be undertaken on the imported bearings, but the supporting manufacturer lacked the facilities for such operations. Expert examination confirmed the imported goods were fully finished bearings, supported by a manufacturer's letter stating minimal processing before final packing. The appellant submitted a certificate indicating basic cleaning and inspection on the imported goods.

The appellant argued that the goods were cleared under a valid import license and exported after processing, denying the import of finished bearings. However, the tribunal found no evidence to support the appellant's claims, upholding the findings that the appellant imported finished bearings misdeclared as semi-finished. The appeals were dismissed based on the discrepancies between the imported goods' actual condition and the declared semi-finished state, as well as the lack of substantial manufacturing processes as per the advance license conditions.

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