VIKAS CHANDRA Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) Both the appeals are directed against Order -in -Original No. 14/2002 -CAU, dated 28 -1 -2002 by which the Commissioner has passed the following order :

(2.) Aggrieved by this order, the appellants have come in appeal on the ground that they had imported electronic components under Bill of Entry No. 36803, dated 14 -7 -99 from M/s. IT Pal Co. Ltd., Taiwan vide Invoice No. 970619 dated 19 -7 -97. The total value was declared as Rs. 14,58,482/ -. The Bill of Entry was assessed after classifying the electronic components viz. ICs, Connectors, diodes, transistors, CRT 14" and plastic moulded parts under their appropriate heading based on the declarations made by the importers. The factory premises of the importer was searched on 18 -7 -97 by officers of DRI and it was found that there was another packing list indicating package -wise details of components in 155 packages serially numbered from 001 to 155 while totally 163 packages were declared to customs under Bill of Entry No. 36803, dated 14 -7 -97. The examination of the goods revealed that package Nos. 1, 2, 3 and 4 contained ICs, diodes, transistors and connectors respectively. The packages 5 -11 contained CRT 14" colour. Only packages numbered 12 to 111 were found to contain plastic moulded components for computer monitors while the declaration in the Bill of Entry indicated that packages 12 to 163 contained plastic moulded components. The package No. 112 to 155 were found to contain other components like unpopulated PCBs, Resistors, Degaussing Coil, Power Cords, head sink, user manual, etc. The packages 156 to 163 were found to contain Pentium Mother Boards and glue sticks. Shri Vikas Chandra, Managing Director, M/s. Comptech Electronics P. Ltd., Chennai in his statement dated 18 -7 -97 stated that in respect of import of colour monitors from M/s. IT Pal Co., the items like unpopulated PCB, resistors, variable resistors, capacitors, coils, transformers, fuse, wire, core bead, switch, jumper cords, CRT socket and miscellaneous mechanical parts were not declared as such but declared as plastic parts. He also admitted that 100 Mother Boards with 256 Cache without CPU were also imported and were not declared. He further admitted that he had also imported one consignment of 100 Mother Boards under Bill of Entry No. 27492, dated 27 -5 -97. Shri Vikas Chandra, Managing Director of M/s. Comptech Electronics P. Ltd in his further statement dated 23 -7 -97 also stated that the original packing list for the present consignment was 10 pages long giving details of small items like resistors, capacitors, screws, nuts, PCBs, coils, wires, etc. contained in the consignment in 155 packages. The packing list submitted to Customs contained only major and high value items like ICs, diodes, connectors, CRTs with deflection yoke and plastic moulded parts. The remaining items were omitted since they were minor and of low value and for operation convenience and to avoid lengthy and cumbersome packing list. He further submitted that he was aware of that these items fall under Customs Tariff Headings attracting different rates of duty. Detailed investigations were conducted by the DRI and a total differential duty amount of Rs. 1,85,02,508/ -was calculated for the imports from all the four suppliers for the period from 1992 onwards. The importers paid Rs. 14,00,000/ - towards duty liability immediately. In view of the misdeclaration of description and value the goods were liable for confiscation under Section 111(m) of the Customs Act, 1962 and they were liable for penalty under Section 112(a) of the Customs Act, 1962.

(3.) The goods seized under Bill of Entry No. 36803, dated 14 -7 -97 were provisionally released except the Pentium Boards in terms of PD Bond for Rs. 20,00,000/ - with bank guarantee for Rs. 2,00,000/ - executed by them.