AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2008 (10) TMI 382
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....plea of financial raised by the petitioners. 2.1 These applications were, accordingly, taken up for hearing afresh in pursuance of the above direction of the Hon'ble High Court of Delhi. 2.2 On behalf of the applicants, the Statements of Account relating to M/s. Intrade Impex Pvt. Ltd. and M/s. Akay Cones Pvt. Ltd. as on 29-8-2008 and copies of the income tax return for the assessment year 2008-2009, in respect of Shri H.M. Prabhakar, were filed. 3. The relevant facts, in brief, are as follows : (a) Of the three applicants before us, M/s. Intrade Impex Pvt. Ltd. and M/s. Akay Cones Pvt. Ltd., are private limited companies and the other applicant, Shri H.M. Prabhakar, is the one of Directors of thes....
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....them to the Indian based importing companies, normal expectation is that the intermediaries supplier would add their own margin and hence their selling prices shall be more than the prices at which the same were purchased by them from the manufacturers. However, in this case, even though the goods have been directly shipped to the Indian based companies, the invoice value was l/3rd price paid by the intermediary-supplier. (e) Show cause notice dated 1-12-2003 and addendum dated 16-2-2004 to the show cause notice were issued and the appellant moved a Writ Petition before the Hon'ble High Court on matters relating to release of documents etc. The Hon'ble High Court gave certain directions vide their order dated 20-10-....
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....ted 30-12-2005 passed by the previous Commissioner. 4.1 Learned advocate for the appellants submit that a sum of Rs. One crore stands deposited on 2-2-2007, in pursuance of order of the Hon'ble Supreme Court; the amount should be taken as deposit for the purpose of hearing the appeals and the balance amount of duties and penalties should be waived; the appellant companies are not having any business activities as of now; the appellants are not in a position to make any further deposits in view of financial hardship faced by them. 4.2 The prices at which their suppliers purchased from the manufacturers are not relevant for the purpose of valuation under Section 14 of the Customs Act. They represent transactions with unknown parti....
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.... sufficient for the survival for the Appellant and his family. Moreover, the only property owned by the Appellant as his residence i.e. MIG flat in Mayapuri is also mortgaged to the bank towards security against credit facility. Moreover, the 16 NSCs for a face value of Rs. 1,60,000/- (present value more than Rs. 4,00,000/-) released under the impugned order are also with the department and the appellant undertakes not to stake claim on the same till the final disposal of the Appeals. 5.1 Learned SDR took us through the documents such as the invoices raised by the manufacturers to the intermediary suppliers, the invoices raised by the intermediary-suppliers to the appellant companies, the bill of ladings to show that for the very same....
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....companies have been raised by the intermediary supplying firms based in Taiwan, Singapore and Japan at 1/3rd of their purchased prices. What they have purchased at US $ 3 PMT was invoiced for 1 US$ PMT. This is rather very unusual, to say the least. Shri H.M. Prabhakar has dealt with the manufacturers of the goods though invoices have been received from intermediary firms as mentioned above. The department has established a prima facie case of undervaluation against the appellant companies and the role of Shri H.M. Prabhakar in such planned undervaluation. 6.2 The finding of under valuation of imported consignments against the appellant companies are, prime facie, further corroborated. There is a finding that they have sold in the imp....
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....iable as indicator of their actual financial positions. The interest of revenue is also required to be taken into account. 8. In the light of the above, we hold that the appellant companies have not made out a case for total waiver of duties demanded from them. Similarly, we hold that there is no justification for total waiver of penalties imposed on Shri H.M. Prabhakar, and that his income tax returns cannot be relied upon to determine his financial position. 9. We find that in pursuance of order passed by Hon'ble Supreme Court a sum of Rs. 1 crore was deposited on 2-2-2007 by M/s. Akasy Cones Pvt. Ltd., the challan of which has been produced for our perusal. We clarify here that the said deposit was ordered to be made as condi....