TaxTMI 
TaxTMI 
2013 (9) TMI 28
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....he same on payment of fine of Rs. 52 lakhs and imposing penalty of Rs. 22 lakhs. 1.4. Appeal No. C/1662/2010 is by M/s. P.K. Traders challenging the order of the Commissioner demanding differential duty of Rs. 34,75,652/-, confiscating goods with option to redeem the same on payment of fine of Rs. 10.5 lakhs and imposing penalty of Rs. 5 lakhs. 1.5. Appeal No. C/1663/2010 is by M/s. Haripriya Traders challenging the order of the Commissioner demanding differential duty of Rs. 56,43,485/-, confiscating goods with option to redeem the same on payment of fine of Rs. 16 lakhs and imposing penalty of Rs. 8 lakhs. 1.6. All these appeals involve imports of identical goods mostly from common suppliers and involve common issues and are accordingly dealt with by this common order. 2. Heard learned advocate Shri C.K. Karunakaran for the appellants and Shri P.R.V. Ramanan Special Counsel for the department. 3.1. The relevant facts, in brief, are that the appellants M/s. M.S Enterprises, Mohammed Fariz, Shabeer Enterprises, P.K Traders and Haripriya Traders imported Betel nut consignments numbering 17, 17, 14, 14 and 4 respectively from Indonesia/Thailand during the period from M....
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....ters as mentioned above. The importers have filed these appeals challenging the above orders. 4. Learned counsel for the appellants challenges the orders on various grounds and importantly on the following grounds: (a) The Betel nuts are agricultural products which are basically boundary crops in Indonesia. The appellants have visited the exporting countries and directly procured the consignments in bulk quantities at lower prices. They have made the payments through legal channels. The imported goods were subject to processing at their factories resulting in substantial value addition while being sold in India. Therefore, there is no reason to doubt the values declared by them. (b) The document said to have been seized from M/s. Integral Traders has been relied upon. No seizure mahazar was produced to show that the said document was indeed seized from M/s. Integral Traders. While the said document is relied upon to allege short payment by the appellant-importers, not even a show-cause notice has been issued to M/s. Integral Traders based on the said documents recovered from them. The explanation offered or the statement given by representative of M/s. Integral Traders on ....
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....e said contract was accepted by the importer and the CHA. (c) The First Secretary, High Commission, Singapore is the appropriate authority competent to furnish authentic trade information from ASEAN countries. (d) Evidence collected was first of all in the form of documents suppressed from the Customs in two very much comparable imports, one at Kochi and another at Tuticorn. Together, these documents revealed the pricing and packing pattern and practices adopted by the Indonesian exporters and their deliberate and systematic misdeclaration and manipulation of actual prices recovered by them from Indian buyers in collusion with the latter, in view of the high rate of duty on betel nuts imported from Indonesia. (e) Despite the fact that the description of the subject goods were not uniform and the ungarbled Betel nut consignments comprised different product mixes, the prices for Indonesian imports were declared within a narrow range of US$ 225 to US$ 250. (f) This shows that contrary to the claim of the importers, the quality, characteristics, the product mix etc. of the subject consignments were not all reflected in the prices indicated on the invoices filed by them. Thi....
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....e reasoning for coming to the conclusion that the said import documents substantiates a misdeclaration of value by importers. 6.3. We find that the Commissioner has not adequately dealt with the contentions of the assessee relating to rejection of the declared values and for enhancement of the values for assessment. 7.1. On the part of the appellants, we find that they are assailing the reliance placed on the report of the First Secretary (Commerce) High Commission of India, Singapore. Their objections that First Secretary (Commerce) stationed in Singapore is not empowered to gather information and to assist investigation is clearly overlooking the jurisdiction given to the said First Secretary. As rightly pointed out by the learned Spl. Counsel, the First secretary (Commerce) is a competent authority to furnish authentic trade information from ASEAN countries. 7.2. The appellants have questioned the adoption of the values quoted by suppliers in Indonesia for export of Betel nuts (second quality) ungarbled whole, boiled, moisture 5% to India (CIF to ports in South India). On behalf of the department it was submitted that the importers have also declared prizes in the same ....