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TMI Blog2005 (3) TMI 695X X X X Extracts X X X X X X X X Extracts X X X X ..... plicants). 2. Applicant is engaged in the activity of horse racing and breeding in its stud farm at Village Shirgaon, Pune. For the said purpose, it had imported one stallion and 11 mares during the period January 1998 and November 2002. Information was received by the officers of DRI, Mumbai that the applicant had imported the said horses and evaded customs duty by resorting to undervaluation of the same. Investigations revealed that the prices initially declared by the applicant for 12 horses at the time of customs clearance, were incorrect. The applicant deposited an amount of Rs. 36,35,169/- during the course of investigations. 3. The investigations led to the issue of Show Cause Notice vide F. No. DRl/BZU/E/6/2003, dated 27-11-2003 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accepting the values determined by DRI in respect of 5 horses, the applicant had disclosed voluntarily the true values of 7 horses, with a view to fully co-operate with DRI and also with a view to come clean on record. Thereby, the applicant had admitted voluntarily the additional duty liability of Rs. 8,10,979/-, despite the fact, there was no evidence with the DRI, in respect of said 7 horses, either at the time of enquiry or referred to in the Show Cause Notice. (ii) the applicant had deposited immediately after the enquiry, the estimated duty liability of Rs. 36,35,169/- five months before the issue of the Show Cause Notice. The applicant had thus paid and honoured the estimated duty liability, by making deposit of about 99% of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssed by the Principal Bench of the Settlement Commission, New Delhi. 8. The Revenue was represented by S/Shri N.V. Rane, S.I.O., and D.K.S. Chauhan, I.O., from the Directorate of Revenue Intelligence, Mumbai Zonal Unit. The Revenue submitted that apart from the three horses where transaction value was available, they had adopted proper method to arrive at the transaction value. In respect of two horses which were imported in pregnant state, the impregnation fees i.e. US $ 10,000 was taken as transaction value. The Revenue further submitted that the trade in horses is an old trade and the method of valuation is well-established. Hence it cannot be said that the values taken by the DRI were incorrect. In fine he opposed the grant of immunit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the case of M/s. Sony India Ltd., reported in 2004 (167) E.L.T. 385 (SC) have held that penalty and interest under Section 11AC, 11AB of the Central Excise Act, 1944 are justified when the actions of the applicant are mala fide in nature. (b) In regard to the other two orders referred at Para 7 (c d), the ld. C.A. has stressed that since the applicant has admitted voluntarily the time-barred demand, it should be granted full immunity from interest. The Bench observes that in the case of M/s. The Poona Stud Farm Pvt. Ltd., passed by the Additional Bench of the Settlement Commission, Mumbai, over 40% of the duty demand was time barred which the applicant had paid voluntarily. In the case of M/s. Manjri Stud Farms Pvt. Ltd., passed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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