NIPPON AUDIOTRONIX LTD Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) THESE appeals are at the instance of M/s. Nippon Audiotronix Ltd. and by Shri K.S. Goindi, Managing Director. M/s. Nippon Audiotronix Ltd. is a Public Limited Company registered under the Companies Act. They imported 51 consignments of Kenwood Car Cassette Player components. 48 consignments landed in Mumbai and 3 in New Delhi. These imports were from M/s. Future Electronics, Tokyo. As and when the consignments reached Mumbai or New Delhi, as the case may be, Bills of Entry were filed. On the basis of the value shown therein duty was paid and goods were accordingly cleared. Subsequently show cause notice was issued on 17 -3 -1999 alleging undervaluation. As per the show cause notice a sum of Rs. 81,49,643 was claimed as customs duty evaded by mis -declaration and suppression of value of the goods imported.

(2.) EVEN before the show cause notice was issued, M/s. Nippon Audiotronix Ltd. deposited Rs. 81,49,640 towards the duty liability on the 51 consignments.

(3.) SHOW cause notice dated 17 -3 -1999 was issued by Additional Director General, Revenue Intelligence, DRI (Hqrs) New Delhi and adjudication proceedings were conducted by Commissioner of Customs, Air Cargo, New Delhi, as per authorisation issued under section 4 of the Customs Act, 1962. By Order -in -Original No. ACU/VS/31/99 dated 1 -10 -1999 the demand made in the show cause notice, namely, Rs. 81,49,643 was confirmed as differential duty payable by the importer. By invoking the provisions contained in Section 28AB of the Act a sum of Rs. 19,74,557 was also levied. Penalty amounting to Rs. 1,01,24,200 was imposed on M/s. Nippon Audiotronix Limited invoking the provisions contained in Section 114A of the Act. A similar amount was also imposed as penalty on Shri K.S. Goindi, Managing Director under section 114A. The adjudicating authority ordered to appropriate the amount of Rs. 81,49,643 deposited by the company towards duty liability as per section 28(2) of the Act. Appellants question the correctness of this Order -in -original passed by the adjudicating authority.