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TMI Blog2017 (4) TMI 582X X X X Extracts X X X X X X X X Extracts X X X X ..... 8 wooden cases containing rusted, old, used and damaged Ball Bearings, Roller Bearings and Taper Bearings of various sizes and only bushes in 144 cases. No fresh bearing was found in that container. 3. The goods which had a declared value of Rs. 24,06,899/- was valued at Rs. 2,65,942/ only. The said container was seized by the Department after retaining the sealed samples. In the follow up action, search was conducted at the residence of Shri Kaura, Partner on 29.01.1999. On 29.01.1999 itself, the Custom Officers also searched the Factory premises of M/s Bhagwati International at 13/1 Mathura Road, Faridabad and recovered 40 wooden cases containing 34415 pieces of old/used/damaged Ball Bearings valued at Rs. 68,830/-. The bonded Store Room was also opened by the Bond Officer and it was searched and Ball Bearings valued at Rs. 2,01,94,912/- were found mostly in fully manufactured condition, and some old and used Ball Bearings as well. The fully finished Ball Bearings were also seized under section 110 of the Custom Act, 1962 on the belief that they were imported into India though the import of fully finished Ball Bearings was not permitted under the 100% Export Oriented Unit licens ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e goods on import were required to be sent under escort directly to the Bonded Warehouse at factory premises after examination and assessment of Bill of Entry. The goods were assessed at 'Nil' rate of duty after examination. No discrepancy was found at the time of import. The goods under export were first examined by the factory Resident Bond Officer at the time of stuffing in the container, sealed by him, and then sealed containers were brought to the lCD, TKD under escort for export. The Customs Officer concerned including the Resident Bond Officer found the goods as per declaration in the Shipping Bill and the Export Invoice. Thus, right from the point of import at ICD, TKD the goods were subjected to examination and up to the time of ex-bond clearance, remained under Customs control. Hence, the second examination report by the Preventive Officers lacks credibility. It was further submitted that both Ball Bearings and Roller Bearings were freely importable at the relevant time and, therefore, cannot be said to have been illegally imported. So far as the goods under export vide Shipping Bill No. 1608 dated 23.01.1999, it was submitted that they were not confiscable under section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 28AB. (v) Personal penalty of Rs. 30,00,000/- on M/s Bhagwati International, Rs. 10 lakhs each on Shri Mohan Thaper & Shri Kanchan Kumar Kaura and Rs. 5 Iakhs each on Shri Kuldip Thaper and Shri Gagan Thaper has also been imposed under section 112 and 114 of the Customs Act, 1962." 6. Being aggrieved, the Appellants filed these appeals on the following grounds: (a) The impugned order has been passed in contravention of the Principles of Natural justice as the cross examination of the vital witnesses and the Customs Officers was denied in writing vide the Commissioner's letter dated 04.07.2005. (b) That non-supply of copies of vital documents like the requisition slips despite Punjab & Haryana High Court Order has prejudiced the Appellant's case and is a gross violation of Principles of Natural Justice. (c) That the entire case has been made on the basis of forced and dictated statements of Shri Mohan Lal Thaper and Shri K.K. Kaura, both co-accused. There is no evidence whatsoever against the appellants. On the other hand, the adherence to the import and export and the examination reports and certificates issued by the Customs & Central Excise authorities clearly contra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... herefore, the demand is ultra vires. (l) So far as the demand for duty on the goods seized from the shop and the godown valued at Rs. 27,53,400/- is concerned, it was submitted that no basis for valuation nor the rate of duty have been disclosed nor any worksheet is provided. (m) In the case of goods seized from the shop at Kashmiri Gate, valued at Rs. 1,89,400/- which is stated to be the market value, the rate of duty and valuation of these goods has to be determined in terms of Section 15(1)(c) of the Customs Act, 1962 on the date of payment of duty. Hence, this demand of duty is not in consonance with the provisions of the Customs Act, 1962. (x) The bulk of the goods imported were found in the bonded store room itself, the charge of abuse of Notification No. 13/81- Cus, is not sustainable. 7. With the above background, we heard Shri Prabhat Kumar, ld. Advocate for the appellants and Shri S.K. Sheoran, ld. DR for the Revenue. 8. The case made against the appellant leading to the issue of impugned order is on the basis of investigation starting with the interception of export consignment at ICD, TKD. The appellant filed documents for export of "fully finished Ball Bearings ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not components for ball bearings, cannot be sustained. They have further contended that the stock of finished ball bearings valued at Rs. 2 Crores which was seized, is not liable for confiscation since they were claimed to be the goods manufactured in the appellant's factory and ready for dispatch. Further, their contention is also that finished products in the bonded store room cannot be ordered for confiscation since the same has not been cleared in contravention of any provision. 11. First, we consider the issue of seizure and ultimate confiscation of the goods entered for export. The export documents declared the export goods as fully finished ball bearings valued at Rs. 24 Lakhs. Further, on 100% examination of the consignment, Customs found that instead of fully finished ball bearings, the consignment consisted of old, rusted and junked ball bearings and bushes valued at only Rs. 2.65 Lakhs. This is, in our opinion, conclusively established the mis-declaration on the part of the appellant. They have admitted to export old and junked ball bearings in the guise of fully finished ball bearings. Consequently, we find no reason to interfere with the impugned order in respect of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om of the appellant's factory at the time of search are not liable for confiscation under Section 111 of the Customs Act, 1962. The confiscation is liable to be set-aside also for the reason that the goods were still found within the Customs bonded warehouse and not cleared illegally. For the similar reasons we are of the view that confiscation of goods totally valued at about Rs. 27.53 Lakhs from various shops and godowns is without any basis in the absence of any evidence linking the said goods to the allegation that they are part of the goods imported by the appellant. 14. The impugned order has also demanded Customs duty amounting to Rs. 3,84,43,296/- in respect of 8 consignments of goods imported by the appellant in terms of Notification No. 13/81-Cus dated 09.02.1981. This demand of duty has been raised on the basis of allegation that the entire goods imported through the above consignment were diverted in the local market without using in the manufacture of ball bearings to be exported. It has further been alleged that the goods which were imported were fully finished ball bearings and hence are not inputs required for further manufacture. To confirm such demand, the adjudi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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