CC NEW DELHI Vs. APARNA ASHSRAM

JUDGEMENT

(1.) The respondents herein imported photographic and recording equipments for making films/Video films on Yoga activities with the stated purpose of research and propagation of Yoga. They cleared equipments duty free claiming the benefit of exemption notification 70/81 CUS dated 26.3.81 which exempts all scientific and technical equipments, Instruments etc. provided the same are imported by research institutions and provided the research institution furnishes an essentiality certificate from the administrative ministry concerned to the effect that imported goods are essential for research and they will be used only for such purpose by said institution and the said institution is not engaged in any commercial activity.

(2.) Acting on an intelligence that the importer have been using imported equipments for commercial purpose, officers of the customs department conducted searches of various premises belonging to and/or related to the activities of the importers and seized certain documents and equipments. Investigations revealed that the importers had entered into an agreement dated 25.6.84 with M/s Aparna Studio Pvt. Ltd. a Pvt. Ltd Company having its registered office at A -50 Friends Colony, New Delhi (same address as that of importers). for the stated purpose of making films/video films on yoga activities which would be on account of and to the benefit of the importers, by utilising the studio owned by M/s Aparna Studio Pvt. Ltd. and the equipments imported by M/s Aparna Asharam. Further investigation revealed that M/s Aparna Studio had entered into an agreement with other T.V. producers under which exclusive services of Ms Aparna Studio having airconditioned T.V. Studio at Gurgaon equipped with requisite multi camera, sound and recording equipments etc. together with its full complement of equipments and facilities, were agreed to be provided to T.V. serial producers. The list of T.V. serial producers entered into such agreement included Shri Siddarth Basu (India Quiz) Mrs. Shobha Doctor (Hum Log), Vipin Handa (Amne Samne) and Mahmood Quereshi (Leher Leher Sangeet). Statements of T.V. serial producers were recorded in which they stated that they utilised facilities of Aparna Studio for shooting serials and that equipments installed at Aparna Studio were imported equipments. Statement of Shri Dhirendra Brahmachari founder president of Aparna Ashram was also recorded on different dates and statement of Shri Murli Choudhury, one of the directors of Aparna Studio, was also recorded. On the basis of the above, it appeared that M/s Aparna Studio had never imported any equipments related to photographic and recording facilities, ad that the equipments at Aparna Studio used for making films other than on yoga were the equipments imported by Aparna Ashram at nil rate of duty in contravention of the condition of notification 70/81. Accordingly a show cause notice was issued to Aparna Ashram proposing confiscation of 52 items seized from Aparna Ashram at New Delhi, and six items seized from Aparna Studio, Gurgaon, valued at Rs. 6,72,500/ - (duty liability involved - Rs. 12,25,904/ -) under Section 111(0) and proposing imposition of penalty under Section 112 of the Customs Act. 1962. The notice was adjudicated by the Collector of Customs who, by the impugned order, dropped the proceedings and directed release of the seized goods to the importers. Hence this appeal by the Revenue.

(3.) We have heard Shri M.P. Singh, Ld. JDR and Shri J.S.Agarwal, Ld. Adv.