BANWARI LAL Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) THESE , are seven petitions praying for stay of operation of the order passed by the Commissioner of Customs, Inland Container Depot, Tughlakabad, New Delhi. Since all the appeals arise out of the same order, we are disposing of these stay petitions by this common order. We heard the learned Counsel representing the appellants and the learned Departmental Representative.

(2.) M /s. Hindustan Overseas imported zinc describing it to be zinc slabs "scull" of Netherland origin and classification claimed under chapter 7902.00 as zinc waste and scrap. Its value was declared in the bills of entry at US 575 per MT. The consignment was assessed by Customs authorities at an enhanced value of US 600 per MT based on the value of contemporaneous imports and duty was paid on the basis of that value. Goods so imported were subjected to chemical test by C.R.C.L. On such analysis it was found to be Zinc Ingots of 99.9% purity. Stickers affixed on the ingots indicated that the goods were of Russian origin. Zinc ingot, at the time of import, was found to be valued at US 1014 per MT. In the adjudication proceedings it has been found that there was misdeclaration and undervaluation of the goods imported. Consequently, the adjudicating authority ordered confiscation of the goods namely, 269.790 MTs of Zinc Ingots imported giving option to redeem it on payment of fine of Rs. 25 lacs. The value of the goods was determined at Rs. 1,26,14,183/ -, on which duty was assessed at Rs. 76,51,763. Out of this amount, a sum of Rs. 31,64,910/ - was paid by the assessee on account of the assessing officer enhancing the value of the imported goods to US 600 per MT. After giving credit to that payment, duty liability was assessed at Rs. 44,86,853. The officer also ordered payment of interest on the said amount as provided by Section 28AB of the Customs Act. Penalty amounting to Rs. 44,86,853 was also imposed invoking the provisions of Section 114A of the Customs Act. Shri R.K. Jain and Shri P.K. Jain who were looking after the affairs of the firm were directed to pay a penalty of Rs. 5 lacs each under Section 112 of the Customs Act, 1962. Owner of the importing firm, Shri Banwari Lai was found liable under Section 112(a) and was imposed a penalty of Rs. 1 lac. Shri Sanjay Sharma, Customs House Agent, Shri Satbir Singh and Shri Ram Pal were also found involved in the import of these goods and were imposed penalties of Rs. 2,00,000, Rs. 50,000 and Rs. 50,000 respectively.

(3.) IT is the admitted case of the party that the goods concerned in these appeals are still under the control of the customs authorities. Since those goods have not been released, as per Section 129E of the Act we do not find any justification to direct the appellants to deposit duty and interest demanded in the order impugned in these appeals.