JOGANI TYRES (INDIA), Vs. CC(P)

JUDGEMENT

(1.) ON the basis of intelligence that M/s. Jogani Tyres (India), Mumbai were undervaluing the tyres imported by them during the period 1995 -96 and 1996 -97 investigation was taken up. After investigation issue of show cause notice and adjudication process, the impugned order has been passed wherein the undervaluation has been upheld and differential duty of Rs. 18,46,892/ - has been demanded under Section 28(1) of Customs Act, 1962 with interest as applicable. Further, a penalty of Rs. 2,52,073/ - has been imposed under Section 114A of Customs Act, 1962 and a penalty of Rs. 10,00,000/ - has been imposed on Shri Lalit B. Jogani and a penalty of Rs. 5,00,000/ - has been imposed on Shri Shailesh B. Jogani.

(2.) HEARD both the sides.

(3.) THE appellants submitted invoices issued by Interocean Merchantile Co., Singapore while filing bill of entry. In some cases, value was enhanced at the time of clearance by the excise officers which was accepted by M/s. Jogani Tyres. Subsequently, during the course of investigation, department procured two invoices raised by M/s. Michelin, Bereich Vertrieb, Bannwaldallee 5 - - Postfach 210951 dated 29.2.96 and 15.7.96. Both these invoices showed the value of the tyres as 79.78 US dollars and the invoices were addressed to Michelin Asia, 10 Hysan Avenue, Causeway Bay, 13/F, Sunning Plaza, Hong Kong and destination and the consignee was shown as Jogani Tyres (India). The verification of the invoices also revealed that the quantity of tyres tallied exactly that the quantity shown in the relevant bills of entry. The relevant bills of entry corresponding to these invoices are as under: S