GUJARAT SMALL SCALE INDUSTRIES Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) AS per facts on record appellant imported 1485 Mtrs. Polyethylene of Venezuelan Origin, from M/s. G.A. International, Dubai 13 Bills of Entries were filed describing the said goods as Polyethylene Wide Specs with declared unit price as US 410 MT.

(2.) AS a result of inquires conducted to ascertain the correct value of the goods, samples were drawn and sent to CIPET, Ahmedabad, who reported that the goods were not Wide Specs but of prime (virgin) quality. Inasmuch as, the goods of prime quality were being imported at higher price ranging between US 600 to US 800 PMT, CIF, proceedings were initiated against the appellant vide show cause notice dt. 8.6.1998 proposing enhancement of the assessable value. Notice also proposed confiscation of the goods and imposition of penalty. After considering the submissions made by the appellant during the course of the adjudication, Commissioner enhanced the assessable value of HDPE from US 410 PMT to US 570 PMT and of LDPE from US 410 PMT to US 640 PMT. He also imposed penalty of Rs. 65,00,000/ - (Rupees sixty five lakhs only) upon the appellant under Section 112(a) of the Customs Act, 1962. The said order is impugned before us.

(3.) WE have heard Shri V.S. Nankani the Ld. Advocate appearing along with Shri Naresh Thacker and Shri U.H. Jadhav the Ld. JDR.