9911796707
TMI Blog2023 (12) TMI 613X X X X Extracts X X X X X X X X Extracts X X X X ..... present for the appellants. 2. The matter had been adjourned on all these occasions i.e. on 30.05.2023, 20.06.2023, 30.06.2023, 01.08.2023, 29.08.2023, 18.09.2023 and 03.11.2023. Accordingly, the matter is taken up for hearing after hearing learned Authorised Representative for the Revenue and records. 3. Briefly stated the facts of the case are that the appellant had imported wood working machines falling under Customs Tariff Heading 8465 9990. On the basis of intelligence that the appellant was involved in import of wood working machines from various suppliers at Taiwan, Spain and Italy by under invoicing the imported goods to the extent of 40% and later, the amount was transferred to the suppliers by means of non-banking channels; inv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arned Authorised Representative for the Revenue has submitted that in the present appeal, the appellants have challenged imposition of penalty of Rs.14,97,179/- under Section 114A of the Customs Act, 1962. It is his contention that appellant had knowingly mis-declared the value and fraudulently transferred the excess amount of the value to the overseas sellers by non-banking channels. In their statements furnished, the Managing Director Shri T. Gopi as well as other persons conceded to the said undervaluation and transferring the under invoiced amount to the overseas sellers. It is his contention that during the period, they had accepted that they had imported totally 14 consignments and suppressed the value, hence imposition of penalty on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Entry should be revised to include the extra consideration paid to the suppliers in cash, in terms of Section 14 of the Customs Act, 1962 and whether the differential duty has to be demanded from them. It is evident that M/s. WCPL imported a total of fourteen consignments of wood working machines and parts through ICD, Bangalore as detailed in the worksheet and filed Bills of Entry at Inland Container Depot, Bangalore, seeking customs clearance of the said goods after declaring the value which was approximately about 40% less than the actual value of the goods paid by them to their suppliers. The differential value of the imported goods was transferred to the suppliers abroad by means of non banking channels. They have, made payments thr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the goods was wilfully mis-stated and payment towards imported goods was effected through non-banking channels, which was suppressed with an intention to defraud the Revenue. Since M/s WCPL had mis-declared the value of the said goods, the same are liable to confiscation in terms of Section 111(m) of the Customs Act, 1962. 24. The next issue which has to be decided is whether M/s WCPL are liable to penalty under Section 112 (a) and Section 114A of the Customs Act, 1962. As discussed above since M/s WCPL have rendered the goods liable to confiscation in terms of Section 111(m) of the Customs Act, 1962 they are liable to penalty under Section 112 (a) of the Customs Act, 1962. Since the short levy/levy of the duty/interest has arisen due to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... when the allegation of gross undervaluation of the product and transferring the suppressed amount later through non-banking channels have been accepted in the statements of the Managing Director and other persons of the appellant-company; consequently, the penalty imposed on the appellant-company is hereby upheld. Also, I do not find any reason to interfere with the findings of the learned Commissioner on the personal penalties imposed on each of other appellants who were actively involved in the gross undervaluation. However, considering the gravity of offence committed and the facts and circumstances of the case, the penalty imposed on Shri T. Gopi, Managing Director is reduced to Rs.2,00,000/- (Rupees Two Lakhs Only) and the penalty impo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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