KALYANI TRADERS, SHRI M. Vs. CC

JUDGEMENT

(1.) In both these impugned orders, the modus operandi is same inasmuch as that M/s Kalyani Traders and M/s PNK Traders Pvt. Ltd. are represented by Shri M. Ranganathan and Shri G.T.V. Baloo. Both of them have filed respective Bills of Entry declaring the goods as "Acid Oil". The investigation led to seizure of documents and recording of statements and after due test of the samples, the item turned out to be "Palm Kernel Fatty Acid Oil/Distillate". Appellant had indulged in mis -declaration and had attempted to clear "Palm Kernel Fatty Acid Oil" in the guise of "acid oil".

(2.) In the Order -in -Original No. 249/97 dated 27.12.97 the Commissioner has dealt with Bill of Entry under which the consignment which had been sent by M/s G.T. Bhavani Trading from Malaysia represented by Shri G.T.V. Baloo of the supplier's firm. In his statement, he had clearly admitted about supplying the goods namely "Palm Kernel Fatty Acid Oil" to the appellant M/s PNK Traders Pvt. Ltd. represented by Managing Director Shri M. Ranganathan who happened to be his uncle and to M/s Kalyani Trading whose proprietor was Mr. M. Ranganathan. He has clearly admitted that he had requested his company to invoice "Palm Kernel Acid Oil" as "Soap Stock" so that he can save customs duty, that their actual export price of Palm Kernel Acid oil supplied was higher but in the invoices they had mentioned US 140 per MT. He admitted that he used to transfer the amount declared in the invoice to their company through normal banking channels, mostly on documents against the payment terms and the remaining uncleared amount would be handed over to him when he visited India; that he used to get a share in the profit both Kalyani Traders and PNK Traders (P) Ltd.; that his profit amount would alone to be handed over to him during his visit to India; that he supplied 18 nos. of 20' container loads of "Palm Kernal Acid Oil" in the name of "soap stock" to M/s Kalyani Traders and PNK Traders Pvt. Ltd. Chennai. He used to get chemical test reports from M/s Indelab, Malaysia by giving the samples of 'soap stock' in stead of Palm Kernel Acid Oil; that since market for Palm Kernel acid related products was highly competitive they had under -invoiced the value to save customs duty; that he was shown page Nos. 3 to 9 of file No. 5 that was seized from the importer's office and he signed on all the seized documents as a token of having seen him. He also admitted about the fax messages sent to Ranganathan on 12.4.97 wherein the details of transaction had been informed. Mr. Ranganathan also during the course of investigation admitted of having imported Palm Kernel acid oil from Malaysia and selling them to local traders. The details of all the admissions have been noted in the respective orders as culled out at the time of investigation. Appellant paid in the case of Kalyani Traders a sum of Rs. 3,73,922 towards differential duty and further presented, a demand draft of Rs. 2,24,550. Further a sum of Rs. 3 lakhs was paid on 23.7,97 and requested these amounts to be adjusted towards duty. Thus, he paid Rs. 8,98,492 in total towards differential duty on the undeclared portion of the actual cost of goods imported by him and the same has been noted in Order -in -Original No. 250/97 against Kalyani Traders.

(3.) In respect of the case booked on PNK Traders Pvt. Ltd. it has been noted in 010 No. 249/97 dated 27.12.97 that Ranganathan, Managing Director on behalf of PNK Traders Pvt. Ltd. paid an amount of Rs. 8,98,472 towards differential duty on the undeclared portion of the actual cost of goods.