2004 (11) TMI 362

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....rency counting machines in June, 2003 and filed Bill of Entry No. 507, dated 18-6-2003 for its clearance. The machines were described as Model DHP-1D. It was also stated that these were machines without 'OK' stamp. However, examination of the consignment showed that equal number of OK stamping machines were also included in the consignment. The authorities proceeded against the appellant for misdeclaration of the goods. The appellant explained that it had taken up the matter with its foreign supplier and that supplier had intimated that the supply of OK stamping was a mistake. In fact, the supplier's letter dated 2nd June, 2003 stated the following : - " We regret to note the discrepancy in the number of Boxes shipped against our Invoice....

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....ithin a period of 30 days from the date of receipt of this order. Since the machines have been released provisionally after execution of Bond, in the event of their failure to pay this amount, the Bond shall be enforced by the Asstt. Commissioner, ICD, Pithampur. (iii) I confirm the duty amounting to Rs. 1,02,792/- on 120 Nos. of OK stamping machines valued at Rs. 2,02,347/- (CIF) and is appropriated against the amount already deposited. (iv) I confirm the duty amounting to Rs. 21,14,597/- on 120 Nos. of note counting machines valued at Rs. 41,62,592/- (CIF) and is appropriated against the amount already deposited. (v) I also impose a penalty of Rs. 2,00,000/-(Rupees Two Lacs Only) on the noticee i.e. M/s. Methodex S....

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....and it has set aside the enhancement of value under its Final Order No. 612/03-NB(A), dated 28-8-2003 [2004 (163) E.L.T. 451 (T)] in Appeal No. C/l 73/2003-NB(A). 5. We have perused the records and considered the submissions made by ld. SDR also. 6. We find merit in the appeal. It is unreasonable to take a view that a consignment valued at more than Rs. 40 lakhs is being used to conceal the import of Rs. 2 lakhs worth of accessories. In fact, the stamping machines do not appear to have been concealed, at all. They were packed in three separate packets and sent along with 120 packets containing note counting machines. The appellant's supplier has explained the excess supply as merely a mistake on account of the reason that th....