LAWS(SC)-2000-2-95

COLLECTOR OF CUSTOMS Vs. TELEVISION AND COMPONENTS LIMITED

Decided On February 24, 2000
COLLECTOR OF CUSTOMS Appellant
V/S
TELEVISION AND COMPONENTS LIMITED Respondents

JUDGEMENT

(1.) The issues in these appeals arise out of the import of Tape Deck Mechanisms (TDMs) by the respondent No. 1. According to the appellant, not only were the TDMs imported at a gross under-value which resulted in a non-payment of the appropriate customs duty but they were also imported contrary to the provisions of the Import and Export (Control) Act, 1947 and the Import Control Order 1955.

(2.) The TDMs had been imported by the respondent No. 1 at S $ 250.00 per set from Yamato Industrial Co. Ltd. (referred to hereafter as 'Yamato'). Acting on intelligence that the impored TDMs were fraudulently under-invoiced and that the provisions of the Import Control Order, 1955 had been violated, the consignment was intercepted by the Directorate of Revenue Intelligence (DRI) at Kandla Port. Investigations were started by the DRI. The respondent No. 1 challenged the investigation under Art. 226 before the High Court at Gujarat. The writ petition was disposed of by directing the DRI to complete the investigation and issue the show cause notice within two months.

(3.) Raids were conducted at office and factory premises of the respondent No. 1 by the DRI and several documents recovered. Statements of the Managing Director, the Director and Assistant Manager as well as the clearing agent of the respondent No. 1 were recorded under S. 108 of the Customs Act, 1962 (referred to as the 'Act').