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TMI Blog2002 (8) TMI 433X X X X Extracts X X X X X X X X Extracts X X X X ..... ent and cabinets/ prototype modular home kitchen/pre-fabricated housing materials for home kitchen, as described variedly in the Bills of Entry filed for clearance. These goods are imported in CKD conditions. The completion of the projects involved civil, electrical, plumbing and carpentry works at the customers premises. Based on specific information of alleged under valuation of imported goods, officers of DRI conducted search in various places on 18-12-98 and recovered certain incriminating records. They also seized goods worth Rs. 76,11,373/- . After due investigation, the impugned SCNs were issued. (a) One in respect of imports effected through Chennai Port and cleared under 10 Bills of Entry filed between December, 1995 and January, 1997 demanding a differential duty amount of Rs. 36,96,201/- by proposing upward revision of the declared value on the respective Bills of Entry by the importer. The SCN proposes re-determination of value by adding 65% of the original price of foreign supplier, namely, M/s. Veneta Cuicine to the declared assessable value in the B/E under Rule 8 of the Customs Valuation Rules, 1988 read with Sec. 14 of the Customs Act, 1962. The notice also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has admitted a duty liability of Rs. 10,02,087.40 as against Rs. 36,96,201/- demanded in the first notice. Similarly, as against the demand for Rs. 59,12,619/- proposed to be demanded in the second Notice, the main applicant has admitted a liability of Rs. 15,73,920.60. 4.1 In the applications, the main applicant has challenged the evidences relied upon in the SCN and has highlighted the absence of any nexus between the Bills of Entry under which the impugned goods had been cleared at Chennai and Bangalore, and the fax message (dated 21-4-97) recovered by the Revenue from the premises of Shri Thomas Mathew and relied upon in the notice, to allege short levy. The applicant has also questioned the correctness of the recourse taken by Revenue to Rule 8 of the Customs Valuation (Determination of Price of Imported Goods) Rules, 1988, immediately after discarding transaction value covered by Rule 4 of the said Rules, without sequentially proceeding with the remaining Rules 5, 6 and 7 ibid. The omission to lead price of contemporaneous imports of similar goods is also questioned. The extra payment by their customers is claimed to be towards civil and other related work connected with a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the list prices at least a discount of 50% is given by the overseas suppliers even though they have given a much higher discount (55%) on the impugned goods imported under .... Bills of Entry cited in the Show Cause Notice, during 1995-98. (Aforesaid paras 79 and 71 of the Applications). It has been prayed that they are prepared to accept the additional duty liability ... in full settlement without having to under go adjudication and/or appellate proceedings. Paras 80 and 72 respectively of the Applications for import through Bangalore and Chennai Sea Port). 5. On the other hand the Revenue has pleaded that the applicant has failed to come clean and to make full and true disclosure of their duty liability. It is contended that apart from the letters (apparently of the overseas suppliers regarding discount), there is no other corroborating evidence on the fact and quantity of discount, if any, extended by the overseas supplier. It is high-lighted that the applicant had admitted in para 25(c) of the application relating to import through Chennai Sea Port and para 29(c) of the application towards import through Bangalore that they also received a copy of invoice and packing list ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ission of fabricated and incorrect documents not reflecting the true and full transaction value. The applicant has refuted this charge in their applications. To this extent, there is neither an admission of guilt or omission to declare the full value before the proper officer for assessment, nor any admission of consequential duty liability. On the other hand, the applications only bring out the willingness of the applicant to discharge duty on certain discounts said to have been extended by overseas supplier as per standard international practice, to settle the dispute by approaching this Hon ble Settlement Commission . The objective of the settlement scheme being grant of an opportunity to an errant tax payer to make a clean breast of his affair and confess to his commission/omission and consequential admission of additional duty liability, the very basic objective is not met by the application. 6.1 It may be relevant to point out to here that the Wanchoo Committee, on whose recommendations the Income Tax Settlement Commission machinery took birth, and the pattern of which has also been followed in the Customs and Central Excise Settlement Commission, also laid down that Each ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice paid for the goods. This information is something which should be very well within the knowledge of the importer as he has made payments for the imported goods. Obviously, the applicant has not chosen to reveal this for fear of repercussions from proceedings under other Central Acts. The Bench, therefore, finds that instead of letting-in positive evidences in the form of actual payments made, and disclosing the modus, the applicant has simply chosen to forego certain discounts said to have been extended by the foreign supplier of the imported goods. The applicant has been repeatedly adviced that for a successful settlement, disclosure has to be made on the transactions made by the applicant, and not by picking holes in the investigation. In fact, by the Interim Order dated 15-4-2002, the Bench made it clear that the settlement application merely indicated that the applicant obtained discounts but were willing to admit more liability without indicating whether there was suppression and consequent under invoicing and the extent thereof and how it was made good. But the applicant has still not come out with any such revelation. As held by the Hon ble Madras High Court in Sheikh Mo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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