1996 (8) TMI 242

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.... of the Customs Act, 1962 but permitting redemption on payment of fine of Rs. 80,000/- and Rs. 50,000/- respectively on the two Bills of Entry and levying penalty of Rs. 30,000/- and Rs. 20,000/- respectively. Imported goods are covered by two invoices. Bills of Entry are dated 3-12-1990 and 4-1-1991. Quantities covered are 14,000 pieces and 19,000 pieces respectively. Declared value was Singapore $ 0.53 per piece CIF. Appellants produced manufacturers invoice dated 10-12-1990 to the supplier for 14,000 pieces showing the price of Singapore $ 34 FOB. The goods were of Chinese origin. The appellants supplier is at Singapore. The Collector found suspicious circumstances surrounding the manufacturers invoice as well as the appellants invoices ....

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....lants was issued by the manufacturers sister concern in Singapore to a supplier in Singapore. In other words, it was a local invoice. However, the invoice relied on by the Department was issued by manufacturers sister concern to the importer at Madras. Explanation offered by the appellant was that while one was a local sale and the other was export sale and, therefore, in all probability, two sets of invoice books were being maintained and, therefore, the discrepancy in the invoice numbers. Prima facie,the explanation appears to be acceptable. The Collector did not consider this explanation. He should have considered the same and if he felt any doubt about it, he could have verified from the manufacturers sister concern their explanation fo....