ANIL JATIA Vs. CC, (GEN)

JUDGEMENT

(1.) The above captioned appeals have been preferred against the common Order -in -Original dated 4.5.2000 vide which the Commissioner of Customs has ordered the confiscation of the seized goods (polyester curtain cloth and polyester suiting cloth) and imposed penalty of various amounts, as detailed therein, on the appellants.

(2.) The facts leading to the filing of the present appeals may briefly be stated as under: On 27.1.1998, the Preventive Branch of New Customs House, New Delhi, conducted raid on the premises of appellant, M/s Prakash Transport at East Moti Bagh, Sarai Rohila, Delhi. As a result of search, polyester textile fabric for curtains and suitings, measuring 66,061.2 metres valued at Rs. 66,06,120 was recovered which was seized after preparing Panchnama at the spot. On demand, Shri Vinod Jindal, Manager, who was present in the premises, could produce only one Bill of Entry No. 345/98 dated 14.1.1998. The scrutiny of said Bill of Entry revealed the names of the importer and exporter of the consignment as M/s Asia Trade Enterprises, Bombay, and M/s Annapoorna Textiles Ltd., Kathmandu, Nepal, respectively (appellants in this appeal). On further inquiry, Shri Vinod Jindal, disclosed that these goods belonged to M/s Aditya Trading Co. (appellants) and were received in the premises on 21.1.1998. The total number of bales containing the textile fabric were 148, and out of those, 12 were already delivered to the nominees of M/s Aditya Trading Co., as disclosed by Shri Vinod Jindal. It was also found that out of 206 bales lying in the godown, 136 bales were only covered by the above said Bill of Entry, while for the rest of the 70 bales, no document was available with Shri Vinod Jindal, in order to show the legal import/acquisition/storage of the same. It further revealed to the Officers that 206 gunny bags contained 59562.80 metres of cloth for curtains and 6498.4 metres for suiting, but the bales, so seized, contained more quantity of cloth than what should have been, and was not covered by the Bill of Entry No. 345/98. The textile fabric was seized under Section 110 of the Customs Act on the belief that being of foreign origin, was smuggled into India.

(3.) During investigation, the statement of Shri Vinod Jindal, Manager of M/s Prakash Transport, was again recorded wherein he disclosed that the seized goods belonged to M/s Aditya Trading Co. and were brought in the truck from Raxaul. Thereafter, Shri Mahabir Prashad Goenka, Proprietor of M/s Aditya Trading Co., was questioned wherein he disclosed that he has been visiting Kathmandu almost every month and there he met Shri Anil Jatia, one of the owners of M/s. Annapoorna Textiles Ltd. and during the talks with him, Shri Anil Jatia, told him that the suitings and shirtings manufactured by his company, were not much in demand and he then suggested him that manufacture of curtain cloth should be started and he would sell the same on commission basis in India. He also further disclosed that 148 bales received from Kathmandu were brought to Delhi through M/s Prakash Transport Co. and of that, one bale was delivered to his employee, Shri Virpal, while one another to M/s White Rose Emporium. He also disclosed that M/s Asia Trade Enterprises, Bombay, had been getting excess polyester cloth and polyester suitings of Nepal origin from M/s Annapoorna Textiles Ltd., Nepal, but had been declaring less in the Bills of Entry. He further disclosed that he had been receiving the fabric from M/s Asia Trade Enterprises, who cleared the same from Customs authorities by making mis -declarations from time to time and that he had sold the same to M/s Jai Durga Woollen Indus., M/s Dass Textiles and others. Thereafter, statement of Shri Manik Chand Jhanwar of M/s Jai Durga Woollen Indus, was also recorded who disclosed that he did not receive the goods of Bill of Entry No. 268 dated 21.1.1998 for 23 -74 mtrs. Of polyester curtain cloth from M/s Aditya Trading Co. Similarly, statement of Shri Ramesh Chander Narang, partner of M/s Dass Textile, was also recorded wherein he denied the receipt of curtain cloth from M/s Aditya Trade Co. on 23.1.1998 and further stated that Shri Mahabir Prashad Goenka approached him on 29.1.1998 with an Invoice No. 270 dated 23.1.1998 for 11 bales of polyester curtain cloth and got his signatures on the duplicate copy of the invoice in token of having received the goods, though he did not receive the same. Statement of one Shri Rambir, Helper working in M/s Jai Durga Woollen Indus, Panipat, was also recorded, who also disclosed that he learnt that some polyester cloth of Nepal Origin had been received from Delhi, but did not bear any stamp of 'Made in Nepal'. Statements of Shri Raj Singh and Shri Jitesh Kumar, Drivers of Tempos were also recorded wherein they disclosed that they had delivered the cloth after taking the same from the premises of M/s Prakash Transport Co. to the persons at Panipat, whose telephone numbers were provided to them, by the transport company. Statement of Shri Suresh Chand Attree, Godown Keeper at the premises of M/s Prakash Transport, was also recorded, who disclosed the details of the goods received at the premises of the company and despatched to various person at the instance of M/s Aditya Trading Co. Statement of Shri Ashok Kumar Proprietor of M/s Jai Durga Woollen Indus., was also recorded during the course of investigation, wherein he denied the receipt of any consignment or the fabrics from M/s Aditya Trading Co. other than the consignment covered by one Bill of Entry No. 268 dated 21.1.1998 Statements of Shri Harminder Singh, Director of M/s Kartar Carriers Pvt. Ltd. and Shri R.N. Misra, Marketing Manager, M/s Sugam Parivahan Ltd., were also recorded wherein they disclosed about the transportation of the goods of M/s Asia Trade Enterprises for Bombay for delivery to M/s Aditya Trading Co., Delhi. However, Shri Ranbir Singh of M/s Sugam Parivahan Ltd., Delhi, denied of having carried any goods from Bombay for delivery to M/s Aditya Trading Co., Delhi.