TaxTMI 
TaxTMI 
2013 (9) TMI 426
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....urvinder Singh Kochhar, Shri Suresh Babu, J.S. Chadha, Shri Ketan Vora are also filed appeals against the imposition of penalties under Section 112 and 114AA of the Customs Act, 1962. 2. Brief facts of the case are that- 2.1 The appellant M/s Auto Stores (India), Mumbai, is an importer of automobile parts. Acting on intelligence that there is heavy under valuation of automobile parts imported, a bill of Entry No. 953653 dated 17/06/2010 filed by the appellant was taken up for investigation by the Special Investigation and Intelligence Branch (Export), Mumbai (SIIB in short). A panchanama dated 23/08/2010 was drawn and it was seen that the consignment contained several automobile parts, most of which were unbranded and of Chinese origi....
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....the proforma invoice to Shri Kochhar, who used to import the item and handed over the same to Shri Vora and the copies of proforma invoices and e-mail correspondence were taken out of the laptop maintained by Shri Vora. 2.5 Statement of Shri Suresh Babu of Auto Start Enterprises was also recorded wherein he inter alia, admitted that he had undertaken similar transactions with Shri G.S. Kochhar. 2.6 Statements of Shri G.S. Kochhar was also recorded on 06/10/2010 wherein he admitted that he had been importing automobile parts from various suppliers in Dubai and Taiwan and mostly through Envoy International (LLC), Dubai and he had negotiated the prices with the overseas suppliers and after negotiation, he placed orders for the goods sele....
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....In respect of another bill of entry No. 953653 dated 17/06/2010,which was pending assessment, the show-cause notice proposed to reject the transaction value of Rs, 3,46,561/- declared by the importer and to re-determine the same to Rs. 81,94,461/- along with confiscation and penalty. 2.8 The case was adjudicated vide the impugned order wherein all above duty demands were confirmed. Apart from confiscation, penalty on Rs. 10 lakh each was imposed on the appellant M/s Auto Stores (India) and Shri G.S. Kochhar, Power of Attorney holder of M/s. Auto Stores (India). A penalty of Rs.2 lakh was imposed under Section 114AA of the Customs Act, on Shri G.S. Kochhar and a penalty of Rs. 10 lakh was imposed on Shri Suresh Babu, proprietor of M/s Aut....
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....goods under importation are sold and retail price at which the goods (automobile Parts) of well known brands are sold by various service centres. He further submits that as regards the imports under Bill of Entry No. 953653 dated 17/06/2010, the goods are still with the Customs and the value has been enhanced from Rs. 3,46,561 to Rs. 81,94,461/-, i.e., more than 20 times of the value declared. In the light of the above, he submits that the duty demands and consequent confiscation, fine in lieu of confiscation and penalties imposed are unsustainable in law and, therefore, pre-deposits of the above should be waived at the preliminary stage of considering the stay application. 4. The Ld. AR appearing for the Revenue on the other hand points....
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.... quality, brand name value and other relevant factors. 6.1 We further find that the representative of the authorized service centres who were closely examined by the learned Counsel for the appellants before the adjudicating authority have admitted that they have not seen automobile parts imported by the appellants so as to confirm whether the authorized service centres sold are identical or similar goods. Therefore, enhancement of value declared price is not admissible in the absence of any reliable evidence. 6.2 We have gone through the following Bills of Entries:- 1) B.E. No. 936742 dated 25.02.2010. 2) B.E. No. 93671 dated 25.02.2010. 3) B.E. No.919489 dated 10.11.2009. &nbs....