TaxTMI 
TaxTMI 
1996 (9) TMI 340
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....), (l) and (m) of Section 111 of the Customs Act, 1962 (for short, the Act) and allowing redemption on payment of fine of Rs. 25,00,000.00 and imposing penalty of Rs. 50,000.00 on each of the importing concerns and Rs. 5,00,000.00 on the proprietor under Section 112 (d) of the Act. 2. The appellants in two appeals, M/s. Sahitya Sales and M/s. Supreme Trading Corporation are proprietary concerns belonging to the appellant in the third appeal, namely, Shri Gurcharan Singh. Two consignments of old and used diesel engines of Japanese origin were imported in the name of the two proprietary concerns allegedly through a supplier in Singapore. Two Bills of Entry dated 22-12-1993 and 1-1-1994 were submitted respectively along with the relate....
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....e notice contending that the engines were in "as is where is" condition and had ceased to be of any utility as such and could be regarded only as scrap and scrap could be imported under OGL. On the aspect of valuation, the appellants supported the declared value and contended that the quotation could not be accepted. The Collector passed the adjudication order overruling the contentions of the appellants and confirming the assessable value proposed in the notice, confiscating the goods, allowing redemption on payment of fine of Rs. 25,00,000.00 and imposing penalties on the appellants. This order is now challenged. 3. Learned counsel for the appellants addressed arguments on the ITC angle as well as on valuation. He reiterated the c....
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....engines had completely outlived their utility and had become scrap. No such materials were placed before the authorities. In these circumstances, it is futile for the appellants now to contend that the Customs authorities should have treated the imported goods as scrap which could be imported under OGL. We agree with the finding of the Collector that the goods being used diesel engines, specific licence was necessary for the import and import without licence warranted confiscation under Section 111(d) of the Act and also action under Section 112 of the Act. 5. The next aspect relates to valuation. All the engines were of 1800CC. The brand names of the engines were Isuzu, Toyota, Nissan, Mazda and Daihatsu. The values declared in Sin....
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....ces, the above quotation could not be accepted without suitable adjustment. The Collector did not consider what adjustment, if any, should be granted. 7. According to the learned Counsel for the appellants, in the course of personal hearing, a copy of the Order-in-Original No. 13/94, dated 30-3-1994 passed by the Collector of Customs, Bangalore in S59/5/B ICD and a copy of Bill of Entry relating to import by another importer were placed before the Collector. The impugned order refers to the order passed by the Collector of Customs, Bangalore as having been produced in this case, but the Collector did not offer any comment regarding that order. That order came to be passed in connection with the import of 170 pieces of used diesel en....