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TMI Blog1999 (5) TMI 191X X X X Extracts X X X X X X X X Extracts X X X X ..... the goods in the customs documents. Simultaneously, it imposed the following penalties under Section 112(a) of the Customs Act :- (1) M/s. Virat Electronics (the importer) ........ Rs. 15 lakhs (2) Shri J.C. Rishi (Managing Director of the importer) ........ Rs. 12.5 lakhs (3) Ms. Anita Batla (Director of the importing company) ........ Rs. 12.5 lakhs (4) Mrs. Nirmala Rishi (Director of the importing company) ........ Rs. 5 lakhs (5) M/s. Venus Agencies (Clearing Agent) ........ Rs. 50,000.00 lakhs 2. Arguing the appeals of the importing company and its Directors, learned Counsel, Shri Madho Rao subm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in question and has imposed penalty on him. The evidence relied upon against him is that the Airway Bill had mentioned the Letter of Credit opened by Bank of Tokyo and in spite of that he filed the invoices handed over to him. Further, an invoice for Singapore dollar 405 per piece of cellular phone was recovered from the importer s premises and the same was in an envelope of the Clearing Agent, leading to the presumption that this invoice had been prepared by the agent with the intention to file with the Customs. Shri Asthana submitted that these presumptions are entirely wrong. The Airway Bill did not indicate the value of the consignments and in the absence of that information, the agent had no reason to suspect that the invoice filed fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oods. The invoice and other papers presented to the Customs were also prepared and signed by her. Thus, she played a vital role in the misdeclaration of value of imports. With reference to the role of Mrs. Nirmala Rishi, Shri Prabhat Kumar pointed out that she was a Director of the importing company and it is on record that the false invoices for the clearance of the goods were got attested by her and Ms. Batla from the Bank of Baroda. This clearly shows that she is involved in the running of the company as well as took an active part in the under-declaration of value to the Customs Authorities. The learned SDR, therefore, submitted that the under-invoicing was the result of a carefully pre-planned conspiracy and the parties and the persons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the Singapore firm duly certified as true before the Indian Customs Authorities to get the goods assessed at the lower value and these false invoices were got attested by the Bank of Baroda which had no concern with the payment. We find that the under-invoicing of the consignments itself remains established and admitted. Therefore, confiscation of the goods was fully justified. With regard to the penalties imposed, we find that the evidence on record clearly brings out the fraudulent intention of the parties concerned and the false documents prepared and presented by them to evade customs duty. The supplier at Singapore and the importer in India are closely related parties, inasmuch as the supplier at Singapore is owned by the Managing Di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... into account the gravity of the offence, the value of the goods involved and the duty which would have been evaded if the fraud had not been detected, we have no doubt that the penalties imposed cannot be considered excessive or unwarranted. Accordingly, we confirm the penalties imposed on the importing company, Dr. Rishi, Ms. Anita Batla and Mrs. Nirmala Rishi. We also do not consider the redemption fine to be excessive or in need of any reduction. 6. With regard to the penalty on the Clearing Agent, we find that he was basically acting as the agent of the importer and was in that capacity performing his normal function of facilitating Customs clearance. The papers filed by him including the offending invoices had been handed over to him ..... X X X X Extracts X X X X X X X X Extracts X X X X
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