COMMISSIONER OF CUSTOMERS MUMBAI Vs. BUREAU VERITAS

JUDGEMENT

(1.) These four appeals by the Revenue have a common matrix in the judgment of Customs Excise and Service Tax Appellate tribunal, West Zonal Bench at Mumbai (in short 'the Tribunal').

(2.) The factual background leading to the dispute as noted by the Tribunal in essence is as follows:

(3.) Subsequently investigation by the department led it to conclude that the value or price was under declared and that the true value of the rig ought to be rs. 1966,950,295. The rig was placed under seizure in September 2001 and ordered to be released provisionally by the Bombay High Court after securing guarantees and deposits. Notice was issued propos ing to enhance the value of the rig as stated above, proposing its confiscation under clause (m) of Section 111 of the Act on the ground that its value was misdeclared. Penalty was also proposed on the importer, rabier and Bureau Veritas, a marine inspection agency, (respondent no. 1 in civil appeal nos. 808-810 of 2004) whose Singapore office had issued two reports in 1999 and 2000 certifying the value of the rig. The show-cause notice alleged that the values certified by it were improper. After considering the cause shown and hearing the parties, the Commissioner of customs (Import) Mumbai (in short the 'commission') passed the order which was impugned before the Tribunal. He held the value of the rig to be Rs. 1451,893,375 (equivalent to US $ 32.78 million) and demanded differential duty of about Rs. 29.45 crores. He ordered confiscation of the cig with an option to redeem it on payment of fine of Rs. 5 crores, demanded interest on the differential duty, imposed penalties equal to the duty on the company, Rs. 2 lacs on Jean Paul Rabier and Rs. 2 lacs on Bureau Veritas.