2014 (3) TMI 422

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....ags of cloves belonging to M/s. V. Lalji & Sons from the premises of M/s. Bhanu Ice and Cold Storage (P) Ltd., Vashi on the ground that the said cloves supplied by M/s. Radha V. Company and M/s. Poonam Trading Co. to M/s. Lalji & Sons, had been imported, by mis-declaring the value. The notice proposed to confiscate the above goods under Section 111(m) of the Customs Act, 1962 and to impose penalties on M/s. V. Lalji & Sons, M/s. Radha V. Company, M/s. Poonam Trading Co. and Shri Bhumish Mohanlal Shah. The notice was adjudicated vide the impugned order and the goods were held liable to confiscation under Section 111(m) and penalties were imposed on the noticees under Sections 112(a) and 112(b) of the Customs Act, 1962. A fine of Rs. 1 lakh w....

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....ty. He also submitted copies of invoices for the purchase of the commodity from Spices Trading Corporation Ltd., dated 11-11-1998 and its subsequent sale to M/s. V. Lalji & Sons vide invoice No. 8683, dated 8-12-1998. He also produced bank statement showing realization of the sale proceeds from M/s. Lalji & Sons vide cheques dated 27-1-1999, 30-1-1999 and 12-3-1999. 3.2 None appeared for M/s. Poonam Trading Company, but from the records available, it is seen that they had also purchased cloves from Spices Trading Corporation vide invoices dated 3-11-1998, 9-11-1998, 14-12-1998 and sold the same to M/s. V. Lalji & Sons vide invoice No. 242, dated 17-12-1998. The payment for the sale was also received by cheque dated 21-9-1999 and had b....

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....Sons under bill No. 242, dated 17-12-1998 and the said consignment was purchased by them from Spices Trading Corporation Ltd., Bangalore under Bill No. 3802, dated 14-12-1998. It is on the basis of these bills, the learned Commissioner has come to the conclusion that the cloves under seizure are of foreign origin i.e. of Indonesian origin. If that be so, the question of undervaluation of the spices would not arise as Spices Trading Corporation is a Government of India undertaking who undertakes import of spices on regular basis and supplies the same to various customers in India. Since the transactions in the impugned case are covered by valid documents and the payments have also made by cheques and the same has been encashed through bankin....