GALAXY ENTERTAINMENT Vs. CC (P)

JUDGEMENT

(1.) GALAXY Entertainment (India) Pvt. Ltd. imported in October 1998, goods comprising a 20 lane bowling alley from its manufacturer AMF Bowling Inc., USA (hereinafter AMF). In the bill of entry that it filed in the Mumbai Custom House in October 1998, it declared for the goods an assessable value of Rs. 1,31,25,140/ -based on the invoice price of US 303,981/ -. The assessing officer after conducting some enquiries into the matter, accepted the value declared by the importer. Some sports shoes imported along with the alley were found by him to be unauthorised and ordered by appropriate authority to be confiscated with an option to redeem on payment of fine. Penalty was also imposed with regard to these goods. The goods were cleared.

(2.) SUBSEQUENTLY , in January of the next year, the officers of the Marine and Preventive Wing of the Commissioner of Customs (Preventive) searched the premises of the importer and others connected with the goods and seized the bowling alley. Statements of various persons were recorded in the course of investigation and notice was issued on 18.5.1999 to the importer and to other appellants before us. The notice alleged that the value of the bowling alley for assessment should have been Rs. 28483338 and that since this value has not been declared, the alley was liable to be confiscated under Clause (m) of Section 111 of the Act; it demanded differential duty of Rs. 82,83,108/ - and proposed penalties under Sections 112 and Section 114(A) on the importer and Tuhin Parikh and Atul Ruia, two of its directors. It also proposed penalty on AMF Bowling India Pvt. Ltd. the Indian representative of AMF under Section 112 of the Act.

(3.) THE importer and other persons made their submissions in which it was contended that the value declared was correct. The Commissioner did not accept these submissions. He found that the correct value of the equipment should be what was proposed in the notice, and confirmed the duty for differential duty, ordered confiscation of the goods with an option to redeem them on payment of fine, imposed penalties on the company and its two directors, and also on AMF Bowling India Pvt. Ltd. on the ground that it abetted the incorrect importation. Hence these appeals.