METHODEX SYSTEMS LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) The appellant imports currency counting machines and supplies them mostly to banks and other institutions. The machine comes in two ways, some along with 'OK' stamping unit and some without. The appellants imported a consignment of currency counting machines in June, 2003 and filed Bill of Entry No. 507, dated 18 -6 -2003 for its clearance. The machines were described as Model DHP -1D. It was also stated that these were machines without 'OK' stamp. However, examination of the consignment showed that equal number of OK stamping machines were also included in the consignment. The authorities proceeded against the appellant for misdeclaration of the goods. The appellant explained that it had taken up the matter with its foreign supplier and that supplier had intimated that the supply of OK stamping was a mistake. In fact, the supplier's letter dated 2nd June, 2003 stated the following : - " We regret to note the discrepancy in the number of Boxes shipped against our Invoice No. JW 030516, dated May 16, 2003 i.e. 123 boxes as against 120 boxes in the packing list. On checking we find that the additional three boxes contain OK stamper units, which have erroneously been shipped by our packing department. Since all your previous consignments have gone with OK Stamper this time too these have been shipped without realising that your order is without this accessory. Besides we also regret to note that 2% free shares have not been shipped."

(2.) The Customs authorities did not accept the explanation. The Commissioner passed, the following order in adjudication : -

(3.) In addition to confiscating the goods and imposing penalty for mis -declaration, concealment, etc., the Commissioner also enhanced the assessable value of the note counting machine from Rs. 620/ - to Rs. 720/ -.