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TMI Blog2007 (1) TMI 444X X X X Extracts X X X X X X X X Extracts X X X X ..... Body CT Scanner at a cost of Rs. 36/- lakhs and Rs. 44/- lakhs inclusive of Customs duty. After getting confirmation orders, Wipro GE placed orders on M/s. GE Yokogawa Medical Systems Ltd., Japan (GEYMS) for supply of the equipments vide purchase order dated 30-11-1996. The equipments were of 1987 manufacture and were inspected by a Chartered Engineer vide certificate dated 10-10-1996. The equipments were sold to BHCS and RKDS on 25-12-1996. The equipments landed at Madras port in January 1997. Bills of Entry dated 11-2-1997 were filed by the CHA. The importers name and address were declared in the Bills of Entry as Wipro GE Medical Systems Ltd., A/c. M/s. Bellary Health Care Services Pvt. Ltd., Bellary and Wipro GE Medical System Ltd., A/c M/s. R. K. Diagnostics Services Pvt. Ltd. The nature of the transaction was specified in the Bills of Entry as second-hand medical equipment on high sea sales . In the Bills of Entry, the values were shown wrongly by inclusion of Customs duty also. On realizing the mistake, a request was made to the Customs Authority to revise the value. However, the Customs Authorities issued Show Cause Notices dated 30-8-1997 and 9-9-1997 alleging misdecl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... including the Bill of Entry clearly mentions that Wipro GE were acting on behalf of BHCS/RKDS. (b) The equipment has been installed and is functioning in the premises of BHCS/RKDS, who are the actual users of the imported equipment. (c) The assessable value of the equipment has been taken, both by the Wipro GE and by the department on the basis of the invoice raised by Wipro GE on BHCS/RKDS. Assuming without admitting that Wipro GE were the importers of the equipment, the assessable value should have been based on the invoices raised by the foreign supplier to Wipro GE. (d) It is submitted that simply because an order was placed by BHCS/RKDS on Wipro GE, that by itself does not make Wipro GE, the importers of the equipment. (iv) As far as Wipro GE is concerned their role was different at each stage of the transaction. (a) They were indenting agents when they procured the order from BHCS/RKDS and in turn placed an order on M/s. GEYMS. (b) They were purchasers when the goods were supplied to them by M/s. GEYMS. (c) They became sellers when they sold the goods on High Seas . (d) They acted as Agents under Section 147 of the Customs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mers name as second-hand equipment can be imported only by customers . (ii) The goods under import were completely refurbished and reconditioned under the Gold Seal Programme . The equipment was fully tested and virtually converted into new equipment. In the earlier purchase order new X-Ray tube has been repeatedly figured. In the final revision order dated 5-2-1997, it was deleted and the invoice was prepared accordingly. Perusal of the Gold Seal book obtained from Wipro GE clearly mentions that the equipment is fitted with a new X-Ray tube and lead glass. The presence of new set of X-Ray tubes and lead glass was not brought to the notice of the Department. This is a clear case of misdeclaration. (iii) In view of misdeclaration, the Adjudicating Authority has not accepted the transaction value. (iv) Evidence is on records indicating that the original purchase order and the invoice between the supplier and M/s. Wipro GE were amended for various reasons and the last amendment was done on 5-2-1997, while the High Sea Sale Agreement was finalized on 25-12-1996 when the title and property were expected to be vested with BHCS/RKDS. The manner in which Wipro GE has been t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... im only as directed by M/s. Wipro GE; M/s. Wipro GE is actual importer of the CT Scanner, which is pending clearance from customs...... I am only innocent in this process. Since I have made payment for the CT Scanner installed at my place, the duty for the CT scanner pending with the customs in my company s name has to be borne and paid only by M/s. Wipro GE . From the above it is seen that the CT Scanner has already been supplied to M/s. RKDS even though that item imported in the name of RKDS was pending clearance before the customs. This is clear from Para 9.2 of the Show Cause Notice. The Adjudicating Authority in OIO No. 2933 in Para 8(iv)(a) has given a very detailed finding to show that High Sea Sale agreement was not genuine. Therefore, he has held that the real importer is M/s. Wipro GE only. Looking to the detailed investigations carried out, we cannot fault with the findings of the Adjudicating Authority. We hold that the real importer in these two cases is M/s. Wipro GE. 7.2 The purchase order and the invoices have been revised four times. In the earlier purchase order, there was mention about the X-Ray tube, however, in the last purchase order and the corresponding in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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