PAUL INDUSTRIES Vs. UNION OF INDIA

JUDGEMENT

(1.) The present Writ Petition inter alia challenges the order nd th dated 2 August, 2001 and the order dated 4 December, 2001 passed by the Settlement Commission, Customs and Central Excise, Additional Bench, Mumbai ( hereinafter referred to as "the Settlement Commission"). The facts:

(2.) During the period 199596, the Petitioner inter alia imported several consignments of electronic items such as printed PCB, Tape Deck Mechanism, etc. (hereinafter referred to as "the said goods"). After the said goods were assessed and allowed for clearance for home consumption, the Directorate of Revenue Intelligence ("DRI") started investigation into the alleged under invoicing of the said goods by the Petitioner. The investigation th resulted in a show cause notice dated 11 June, 1999, in which, the Petitioner was called upon to show cause as to why the following amounts should not be demanded and recovered from the petitioner towards customs duty on account of underinvoicing of the said goods:

(3.) On 2 June, 2000, the Petitioner made an Application to the Settlement Commission admitting the additional duty liability of Rs.41,62,860/. This amount represented duty in respect of the 31 shipments in respect of which export declarations were available but the amount was recalculated by the Petitioner based on the actual amount of freight and insurance available. The amount demanded in the show cause notice of Rs.53,97,827/ was calculated on the basis of addition of notional freight and insurance @ 21.125% in terms of Rule 9(2) of the Customs Valuation (Determination or Price of Imported Goods) Rules 1988 ( the "Valuation Rules"), but since the actual freight and insurance amounts were available, the Petitioner recalculated the duty liability based on the FOB value mentioned in the export declarations for 31 shipments and therefore, the admitted duty liability was reduced to Rs. 41,52,860/. This amount has been accepted by the Settlement Commission with a minor correction in the calculation whereby the final amount at which the liability has been settled works out to Rs.42,22,107/, which has been paid by the Petitioner and there is no dispute in respect thereof.