TaxTMI 
TaxTMI 
2000 (8) TMI 185
X X X X Extracts X X X X
X X X X Extracts X X X X
....clared the goods to be "plastic moulded parts". Examination of the goods showed them to consist of parts of wrist watches - back, ring, washer, screw, dials, hands etc. In the course of enquiries by the department, five statements of Rajendra Sanghvi were recorded. Rajendra Sanghvi said that his business was the manufacture of photo conductive plate, assembly of photographic equipments, apparatus and accessories thereof. He said that he was introduced to Anil Shah by his (Sanghvi) cousin, Navin Vora, a share broker. Anil Shah told Sanghvi that he was to import parts of watches in the pretext of processing for stamping transfer foil. A couple of months later Anil Shah told Sanghvi that he had gone to Hong Kong and placed orders for watch str....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ls, hands and plastic moulded straps i.e. declaring the actual watch parts. 4.The enquiries led the department to believe that the goods were under-valued, as the true value being declared in a document stated to be a declaration filed by the Hong Kong exporter before the Custom House obtained by it. 5.On the basis of this investigation, notices were issued to all persons before us. The notices proposed confiscation of the goods under clauses (d) and (m) of Section 111 of the Act, imposition of penalty on Anil Shah under Section 112 for causing import of these goods under mis-declaration, and penalties on the other three for abetment. 6.After considering the cause shown and hearing the noticees, the Collector has passed the impugned orde....
X X X X Extracts X X X X
X X X X Extracts X X X X
....m to arrange for Rs. 10.00 lacs for clearance of the goods, by pledging the imported goods. Rajendra Sanghvi approached Kirit Shah for help in clearing the documents because he said Kirit Thakkar had earlier cleared photographic goods imported by him. The only benefit that he would get is that the parts would be given to him for metalising in his factory. Thakkar in his statement dated 10-3-1994 says that Rajendra Sanghvi imported these consignments. Rajendra Sanghvi was the one who came to him to enquire whether plastic moulded parts are covered under negative list of import policy or not. He says that after seeing the import documents, he realised that M/s. Bharat Water Works had actually imported the goods. Anil Shah maintained lack of i....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e circumstances, we are hesitant to hold that there is sufficient evidence that Anil Shah was the importer. The acts that he has then done would be only to facilitate, by speaking to the supplier of the goods, the purchase by Rajendra Sanghvi. Such an act would not render him liable to penalty. His appeal is therefore allowed and the penalty on him is set aside. 10.Rajendra Sanghvi is therefore the importer of the goods. His only request before us is for leniency. No licence has been produced for import of these goods and they are therefore liable to confiscation under clause (d) of Section 111 of the Act. We are however not able to confirm the confiscation of the goods under clause (m) of Section 111. In our view, under-valuation of the g....