VIJAY KUMAR GANDHI Vs. COMMISSIONER OF CUS., VISAKHAPATNAM

JUDGEMENT

(1.) ON gathering specific intelligence that M/s. R.N. International, the appellant (hereinafter referred to as M/s. RN) and their sister concerns had imported fabrics and were attempting to clear the same through Vizag and Kakinada ports by furnishing false/fake addresses and by grossly mis -declaring the description, weight, country of origin and value of the goods, the officers of the Directorate General of Revenue Intelligence (DRI) Regional Unit, Hyderabad commenced a detailed investigation.

(2.) PURSUANT to the above, the officers located cargo imported by M/s. RN vide bills of entry Nos. 622, 623 and 624 all dated 24 -10 -2000 being examined by the officers, Kakinada Customs House. At the time of visit, the cargo covered under Bill of Entry No. 624/2000 was already examined by the Customs Kakinada and was being loaded into 3 lorries viz., HR 38 B -2427 (already loaded), DR 1 GA -6099 and DL 1 GA 6005 (to be loaded), which were destined to Delhi. The other bills of entry Nos. 622 and 623 dated 24 -10 -2000 were provisionally assessed by the Customs, Kakinada. Duties of Customs for the above three bills were already paid by the importer. The loaded lorry was destuffed and the entire cargoes placed in the godown for a detailed examination. The officers took inventory of the cargo and found that 201, 245 and 235 cartons as against the declared number 194, 245 and 235 were available in the consignments covered under Bills of Entry Nos. 622, 623 and 624 respectively.

(3.) THE officers examined the goods in detail under panchanama, took note of the quantity of fabric physically present and the markings on the fabrics and packing materials. It was observed that the country of origin of the imported fabrics was either Korea or Taiwan. But, was declared by the importer as China in the bills of entry. Quantities of fabrics were physically present in respect of each bill of entry i.e., B.E. No. 622/24 -10 -2000 - 47,189 yds.; 623/24 -10 -2000 - 43,449.7 yds., and 624/24 -10 -2000 - 43,834.8 yds. found to be of different varieties and makes but declared as only one variety and the value was declared at a uniform rate of 0.40 US $/metre. As the description, quantity, country of origin and the local address declared were found to be incorrect, the imported fabric with declared assessable value of Rs. 23,76,010/ - was placed under seizure on 27 -10 -2000 on a reasonable belief that the said fabric is liable for confiscation under the provisions of Customs Act, 1962. Samples of the fabric from each consignment representing each variety, make and packing in all 15 representative samples were drawn for testing.