LAKSHMI VILAS BANK LIMITED Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) The facts of the case are briefly as follows:

(2.) Nobody contested the show -cause notice. At the final stage of adjudication, the Commissioner of customs as adjudicating authority fixed personal hearing for 27.2.98 and, accordingly, issued notices to IS Corporation, its proprietor and their CHA. The notices were returned undelivered. On 27.2.98, when the Commissioner took up the case for adjudication, M/s. Lakshmi Vilas Bank Limited (the appellants herein) appeared through the Bank Manager and the Bank's Consultant and made a request for being heard. This request was acceded to by the Commissioner. After examining the records and considering the submissions made on behalf of the Bank, the Commissioner passed the order which is impugned in the present appeal. The impugned order confirmed a demand of customs duty of Rs. 1,38,72,807/ - on the imported goods and also imposed redemption fine of equal amount in lieu of confiscation of the goods. The order also imposed penalties of Rs. 25 lakhs and Rs. 25,000/ - on A. Kumar and IS Corporation respectively under Section 112 of the Customs Act.

(3.) Heard both sides. Ld. Counsel has submitted a chronology of undisputed events. For the purpose of the imports in question, M/s. Lakshmi Vilas Bank Limited (hereinafter referred to as 'LV Bank' or 'the Bank') had opened a Letter of Credit (L/C) at the request of Shri A. Kumar's brother, Shri Ashok Kumar Didwania, who was a regular customer of the Bank, against a personal guarantee given by Shri Didwania. LV Bank collected shipping documents from the bankers of the foreign supplier and handed them over to IS Corporation for clearance. The bank also paid for the goods, in terms of the L/C, to the supplier through the latter's bankers.