TaxTMI 
TaxTMI 
2017 (4) TMI 581
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....ant Krupa Traders, Moon Standard Scrap Co, Hindustan Unilever Ltd., Kishor Chand Katoch, Rajendra Shrivastav,Dinesh Lekhak and Pradeep Kumar against confirmation of demand and imposition of penalties. 2. Ld. Counsel for the appellant M/s Hindustan Unilever Ltd. argued against the demand of duty and imposition penalty for clearance of empty drums from their unit located in Special Economic Zone (SEZ) to Domestic Tariff Area (DTA). Ld. Counsel informed that they were clearing waste packing material consisting of empty drumps from their unit located at SEZ by filing Bills of entry. In the said Bill of Entry, the value of the said material was being fixed at Rs. 6/- per kg. The said value was fixed by Custom. However, the price at which they....
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....laration in the prescribed form shall be furnished by the importers of goods covered by this Bill of entry." He argued that said declaration is meant for only the case where the appellant declares the value of goods and not for the case where the value is fixed by the Custom. He argued that it was open for the Custom to demand and enquire about actual sale price of the gods. Therefore, it is not their fault. He argued that when the assessment at Rs. 6/- per kg was prevalent practice since long and during investigation itself, the DRI had enquired consignment and it was found that the said practice started way back in 1990 when the price was fixed at Rs. 5/- per kg. by KASEZ - Custom. 3. He further argued that demand could not ha....
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....the value fixed by the Customs as assessable value. The appellants were actually paying duty on the same. The Bills of Entry were assessed by Revenue and it was open for the Revenue to check the value at which the goods were being sold. Therefore, there is obvious fault at the end of Custom also. 8. However, it is seen that on the Bills of Entry the appellants have given the following declaration " Declaration to be signed by the Custom House Agent 1. I/We declare that he contents of this Bill of Entry for goods exported against Bill of Lading No... dt....are in accordance with the Invoice No.....dated.... and other documents presented herewith. 2. I/We declare that I/We have not received any other document or ....
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....mporter showing the different state of facts they will immediately make the same known to the Commissioner of Customs. Examination of the Bills of Entry produced by the ld. Counsel during hearing show that in most of the Bills of Entry, column regarding invoice value has been left blank. However, in some of the Bills of Entry in the column regarding invoice value, a value calculated as per the rate approved by Custom has been mentioned. All these facts point to a clear mis-declaration. Leaving column of invoice value blank, failure to mention invoice number and declaration is also suppression. In these circumstances, we find that there is a clear case of suppression and misdeclaration and therefore, the extended period of limitation has bee....
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....rs were aware of the actual price at which the goods were being assessed and also the actual price at which they were purchasing the goods, their connivance in the evasion of tax cannot be denied. Consequently, appeals of the buyers namely, Arihant Krupa Traders and Moon Standard Scrap Co. also dismissed. 11. We also find that penalties have been imposed on Shri Kishor Chand Katoch (Factory Manager of M/s Hindustan Unilever Ltd., Shri Dinesh Lekhak (Commercial Manager), Shri Rajendra Shrivastav, Logistic Officer and Shri Pradeep Kumar (Factory Manager) on the ground that they were aware of the existence of the contract/commercial invoices showing price different from the assessable value declared in the Bills of Entry. It is noticed that....