RAMESH SOLANKI Vs. COMMISSIONER OF CUSTOMS, BANGALORE

JUDGEMENT

(1.) This appeal is by the assessee challenging the orders passed by the Tribunal, appellate authority and the assessing authority, holding him liable to pay duty, interest and penalty. The appellant Ramesh Solanki is the Managing Director of a Company known as M/s. Labdhi Computech Pvt. Ltd. Which is engaged in the business of trading in computer parts and accessories. One Praveen is the proprietor of M/s. Suntech which is a unit registered with Sales Tax Authorities as well as holder of import Export Code. In pursuance of the investigation conducted against Mr. Praveen the Customs Authorities found grave irregularities in importing the goods. They issued a show cause notice dated 21-3-2003 alleging that the appellant was the person who had master minded the entire activity, right from planning, creation managing and monitoring of all operations of M/s. Suntech with a mala fide intention to evade customs duty. He was the brain behind misdeclaration, non-declaration and over declaration and also under valuation of the goods consigned to M/s. Suntech to respect of all consignments received from M/s. Guru Electronics, Singapore. Mr. Praveen is the employee of the appellant and not the actual owner of M/s. Suntech. The appellant is the real owner of M/s. Suntech. It was alleged that the past consignment that were imported by M/s. Suntech were in fact undervalued and also excess quantities of goods were imported as against the declared quantities. To substantiate the allegation that the consignment were under valued and misdeclared, several faxes allegedly issued by M/s. Guru Electronics were relied upon. Therefore the appellant was called upon to show cause as to why he should not be treated as actual importer of the bill of entry pending clearance and as to why the goods seized with respect to the bill of entry should not be confiscated and penalty be imposed on the appellant. The appellant sent reply denying all the allegation. Personal hearing was given to the appellant. In fat, the Customs Authorities have recorded the statement under Section 108 of the Customs Act, 1962 of various persons connected with these transactions such as one Venugopal, Subramanya Sharma, G.S. Shekar Rao, Praveen, G.B. Kumara Swamy and Narendra and Girish. The authorities after considering the statement of objection held that Ramesh Solanki be treated as actual importer in respect of the goods imported vide bill of entry No. 365754 dated 27-9-2002 in the name of M/s. Suntech, Bangalore, the said goods were misdeclared and they were liable for confiscation an amount of Rs. 10,37,509.00 was levied as customs duty and a penalty of Rs. 25,00,000.00 was imposed.

(2.) Aggrieved by the said order the assessee preferred an appeal to the Tribunal. The Tribunal on reappreciation of the entire material on record taking note of the statements of various persons recorded and other material on record, up held the order of the adjudicating authority in so far as appellant is concerned and in respect of others, the penalty was reduced. The appellant has preferred this appeal against the said order of the Tribunal.

(3.) The appeal was admitted to consider the following substantial questions of law.