9911796707
TMI Blog2023 (12) TMI 613X X X X Extracts X X X X X X X X Extracts X X X X ..... 12(b) of the Customs Act, 1962 - tax amount has been paid with interest before issuance of show-cause notice - HELD THAT:- The mis-declaration of the assessable value by the appellant resulted into short-payment of Rs.14,97,179/-, hence imposition of penalty equivalent to the said differential duty of Rs.14,97,179/- under Section 114A of the Customs Act, 1962 on the appellant is justified. There are no error of facts or in application of law in arriving at the said conclusion by the learned Commissioner 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; c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... achines 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; investigations were initiated against the appellant by recording statements of Shri Madan Raj, Marketing Director and others. On completion of the investigation, a show-cause notice dated 5.11.2008 proposing enhancement of value and demanding differential duty of Rs.14,97,179/- under the proviso to Section 28 of the Customs Act, 1962 along with interest and penalty under various provisions of Customs Act, 1962; also, it is proposed to appropriate an amount of Rs.17,53,595/- paid by them during the course of investigation. On adjudication, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder 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 the appellant under Section 114A of the Customs Act, 1962; as also imposition of penalty on other appellants under Section 112(b) of the Customs Act, 1962 is justified. 6. I have carefully gone through the records of the case and submissions advanced by the learned Authorised Representative by the Revenue. The short issue involved in the present appeal is whether the penalty on the appellant-company is rightly imposed under Section 114A equivalent to the duty short-paid and personal penalty of other appellants under Section 112( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 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 through Bank for only 60% of the total value of the machinery and the balance 40% was paid to the supplier in cash through an agent by name M/s. Shivam Forex. They have also accepted that they had imported machineries or an agreed consideration and in reality not declared the actual consideration paid to the suppliers but undervalued the machineries for the purpose of assessment under various statutes including the provisions of Customs Act, 1962and thus failed to discharge full duty and levies payable on such imports and evaded p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oods 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 the wilful misstatement and suppression of the facts, M/s WCPL are liable to pay penalty equal to the duty and interest under Section 114A of the Customs Act, 1962. xxxxxx xxxxxx 31. From the facts of the case as it emerges, it is amply clear that the party had wilfully committed the fraud by deliberately suppressing the value of the goods with an intention to evade duty. The party had further made its fraudulent intentions clear by making conscious efforts to suppress the invoice value by 40%which was subsequ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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