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TMI Blog2017 (2) TMI 421X X X X Extracts X X X X X X X X Extracts X X X X ..... tive of Citizen Watch Company Ltd. had come to India and offered to supply watch modules at very competitive rates. The said price was accepted by the appellant and consequently the goods were imported by the appellant on the contracted prices against eight difference invoices. Out of 8 Bills of Entry filed by the appellant, 2 were assessed finally and balance 6 were assessed provisionally. During investigation, following discrepancies were notice: 7. Scrutiny of the offer letter dated 12/06/2002 and confirmation letter dated 14/06/2002 with the invoice TA 020813N dated 13/08/2002 and other 5 original invoices, revealed discrepancies: a) The address shown in the manufacturer's catalogue was "TANASHI-SHI", Tokyo 188, Japan whereas the letter head of Citizen was showing the area as TANASH-SHI. b) Telex Number on the manufacturer's catalogue was "2822471 CTZTNS" whereas on the letterhead the same was shown as "2822417 CTZINS". c) The signature differed of, Manager of Citizen Watch Co Ltd., Sh. Akishige Uchino, on the invoices. d) The word Japanese was mentioned incorrectly on the invoices. In one case it was "JAPANES" and at another place it was written as "JAPANESS" e) The phot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tizen Watch Co Ltd and asked if they were issued by one person. He stated that it looked like same and signed by Sakuma, but as it was Citizen's document, he could not confirm. f) His attention was drawn to the word Japanese spelt as Japaness and Japanes on the five invoices, to which he stated that Citizen Watch Co Ltd, Japan could explain it better but it seems to be a spelling mistake by their clerical department. h) He was shown the duly certified caveat free documents and he stated that data mentioned in these documents and that submitted by them (importer) at time of import tallied except for quantity and value; that caveat free documents showed that cargo was carried by K Line Air Services (Hong Kong) Ltd from Japan to Hong Kong; that invoices in these documents were raised with consignee name as Gaurav Sales Corporation indicating values in US Dollars and terms of payment as 'advance payment by TT remittance'. j) He was asked of the possibility of watch movements weighing less than 1 gm/piece and he stated that in the market he had seen watch movements of less than 1 gm and that it was possible for watch movements to have weights of 1 gm or more or less. However, he chan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 18 (2) of the Customs Act and the differential duty was demanded. The goods were ordered to be confiscated under Section 11 M of the Customs Act and offered for redemption fine in lieu of confiscation was also made of imposition of redemption fine of Rs. 4.00 crore. Penalty equal to the duty demanded was also imposed under Section 112 of the Customs Act. Aggrieved by the said order, the appellants are before the Tribunal. 2. Learned Counsel for the appellant argued that there was no need to Revenue to look for contemporaneous price of similar goods as contemporaneous price of the identical goods was available with the Revenue in the shape of 2 bills of entry imported against the very same contract from the same country of origin and of identical description. He argued that if the said bills of entry were taken as contemporaneous imports of identical goods no demands survives. 2.1 Learned Counsel argued that they have placed an order of 50 lakhs pieces of watch modules and the contemporaneous imports relied upon by the Revenue is of much smaller quantity. He argued that in case of electronic goods significantly discounts were offered on increase in the quantity of order. He argu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant: BE NO. / DATE 462860 / 25.07.02 462861 / 25.07.02 467837 / 03.08.02 467839 / 03.08.02 INVOICE / DATE FROM CITIZEN TA020721N / 20.07.02 TA020720N / 20.07.02 TA020713N / 13.07.02 TA020727 / 26.07.02 INVOICE ISSUED BY K LINE TA270298K-1 / 08.07.02 TA270297K-1 /08.07.02 TA270206K-1 / 04.07.02 TA270789K-1 /22.07.02 MAWB 16083262336 16083262325 9878819333 9878819355 PKG / BE 51 51 52 52 PKG / H KONG 51 51 52 52 PCS / B.E 303000 303000 303000 + 6060 303000 + 1515 QTY / H KONG 1212000 1212000 1224120 1212000 BE / J.YEN 10605000 10605000 10847400 10668125 H KONG / HK $ 1699521 1699521 1788621.2 1774611.2 H KONG / US $ 215730 + 2157.3 215730 + 2157 227040 + 2270.4 222570 + 2225.7 3. Learned AR argued that while it is an admitted fact, there are quantity discounts available in any industry, the same cannot be in a straight line method. He argued that if the arguments of appellant is extended to a quantity of 1 crore pieces instead of 50 lakhs, the price of the modules according to the formula suggested by the appellant would come down to Rs. 7/-. Learned AR argued that the invoice received through Hong Kong Government, whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ir Services (Hong Kong) Ltd. have been taken for the purpose of assessment. Learned AR argued that the appellants have made payments in advance to K Line Air Services (Hong Kong) Ltd. as is apparent from the endorsement on the invoice issued by K Line Air Services (Hong Kong) Ltd. He argued that since a separate payment has been made to K Line Air Services (Hong Kong) Ltd. and the said TT remittance have not been produced by the appellant. The TT remittance in respect of payments made to Citizen Watch Company cannot be accepted as sole payments made by the appellants. He further argued that there are large number of discrepancies in the documents produced by the appellants at the time of assessment such as the signatures of the person, who has issued the said documents. Signatures of Shri Sakuma does not match in the two documents, namely, the offer letter dated 12/06/2002 and letter of confirmation dated 14/06/2002. He further argued that the signature of Mr. Akishige Uchino on invoice No. TA 020727N does not match with his signature with invoice TA 020713N. 3.3 Learned AR further pointed out that even Citizen Watch Company has stated that the invoices produced by the appellant h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atch Co Ltd., Sh. Akishige Uchino, on the invoices. d) The word Japanese was mentioned incorrectly on the invoices. In one case it was "JAPANES" and at another place it was written as "JAPANESS". e) The photocopy of letter dated 12/06/2002 did not correspond with the original there being changes in the text and format. f) On the invoices and offer letter, the name of the company CITIZEN WATCH CO.LTD is shown while elsewhere it was shown as CITIZEN WATCH CO., LTD. The following table shows the details invoices produced by the appellant and those obtained from Hong Kong Government through Caveat. BE NO. / DATE 462860 / 25.07.02 462861 / 25.07.02 467837 / 03.08.02 467839 / 03.08.02 INVOICE / DATE FROM CITIZEN TA020721N / 20.07.02 TA020720N / 20.07.02 TA020713N / 13.07.02 TA020727 / 26.07.02 INVOICE ISSUED BY K LINE TA270298K-1 / 08.07.02 TA270297K-1 /08.07.02 TA270206K-1 / 04.07.02 TA270789K-1 /22.07.02 MAWB 16083262336 16083262325 9878819333 9878819355 PKG / BE 51 51 52 52 PKG / H KONG 51 51 52 52 PCS / B.E 303000 303000 303000 + 6060 303000 + 1515 QTY / H KONG 1212000 1212000 1224120 1212000 BE / J.YEN 10605000 10605000 10847400 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t genuine and therefore, the same was to be rejected outright. Once the invoices produced by the appellants are rejected, the only alternate is to rely on the documents recovered from the Hong Kong Government. The said documents consists of the following: a) AWBs issued by M/s. K Line Air Services Ltd. Japan for carriage of the goods from Tokyo to Hong Kong b) Authorization of EDI Submission of Export/Re-export declaration in Form 2 and the Trade Declaration print out of Hong Kong Customs. This document reflects the record of information lodged, by M/s. K Line Air Services (Hong Kong) Ltd., Hong Kong the consignor of the goods in Hong Kong, with reference to the goods re-exported to the importers in India. c) AWBs issued by M/s. K Line Air Services (Hong Kong) Ltd. Hong Kong, for carriage of the goods from Hong Kong to Mumbai. d) Invoices issued by M/s. K Line Air Services (Hong Kong) Ltd. in favour of M/s. Gaurav Sales Corporation. e) Invoices issued by M/s. K Line Air Services (Hong Kong) Ltd., Hong Kong, to M/s. Citizen Watch Co. Ltd., Japan, towards charges like airfreight, terminal charges, airline documentation charges, handling charges, cartage charges, re-labeling char ..... X X X X Extracts X X X X X X X X Extracts X X X X
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