RUPA ENTERPRISES Vs. COLLECTOROF CUSTOMS CALCUTTA

JUDGEMENT

(1.) The petitioner is a proprietorial firm based at Bombay and is engaged in the import, and export of diverse items inclusive of tapper roller bearings. It imported a consignment of 10161 pieces of Taper Roller Bearings valued at Rs,81.288 (CIF) from Poland under an invoice and filed a home consumption bill of entry for the same for clearance thereof. The invoice showed the goods as spare-parts of machine tools whereas the declaration in the bill of entry showed it to be components for manufacture of diesel oil engine other than Motor Vehicles and Tractors.

(2.) The petitioner received a show cause notice dated 8.5.90 amended by corrigendum dated 15.5.90 and two addenda dated 29.5.90 whereby the petitioner was asked to show cause as to why the subject imported goods be not confiscated under Section 11 l(d) and (m) of the Customs Act, 1962 (hereinafter referred to as the Act) and also why penalty be not imposed on it under Section 112 of the Act. The petitioner replied to the aforesaid show cause notice contending, inter alia, that the licence was valid for the import of item in question and that there was no misdeclaration as M/s Rishiklal & Co. is the actual user and importer in the eyes of law and as such is entitled to take benefit of the concessional rate of duty.

(3.) The Collector of Customs by his order dated 15.12.1991 held that the petitioner came into possession of the licence in question and the letter of authority on its behalf, only on a date subsequent to the importation of the impugned goods and that the importer of the goods was the petitioner and not M/s Rishiklal & Co., as claimed by the petitioner. It was further held that the petitioner had placed the order for the goods, opened the letter of credit, made remittance for the same and opened the letter of credit, made remittance for the same and imported the goods without possessing a valid licence and that thereafter it manipulated the documents to make it out that it held a valid letter of authority in respect of a valid licence re-transferred in the name of M/ s Rishiklal & Co. In the light of the aforesaid findings the Collector ordered for confiscation of the goods with an option to redeem the same on payment of fine of Rs.6,00,000/- and also imposed a penalty of Rs.1,00.000/-.