KETAN CONSTRUCTION LIMITED Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) The first appellant imported two consignments comprising in all 31 items of old construction machinery into Mumbai and sought their customs clearance under Bills of Entries 1713 and 1721, both dated 8 -2 -2000. The imports were from Dubai and the appellant declared a value of about Rs. 1.2 crore GIF. In support of the declared value, the appellant produced invoice No. EXP/051/2000 and EXP/051 A/2000 both dated 5 -2 -2000 issued by M/s Gulf Stars Auto Spares Parts Establishment of Sharjah, UAE. The consignment were shipped in the same voyage under two bills of lading by vessel M.V. Harare.

(2.) Customs authorities received information that there was misdeclaration and suppression of facts for evasion of customs duty. Accordingly, investigations were taken up by them. Upon examination of the items it was observed that labels of M/s. Ritchie Brothers, Auctioneers alongwith lot Nos. were stuck on them. When the customs authorities searched the office of the importer at Ahmedabad they recovered inter alia the following items : -

(3.) Based on evidence collected during the investigation show cause notice was issued alleging that the import documents had misdeclared prices at much lower amounts and the real prices of the machinery in question was as indicated in the auction list recovered from the appellant's office and confirmed by M/s. Ritchie Brothers, Auctioneers invoice to M/s. Dhanak Jewellers and that there was evasion of custom duty of about Rs. 1.2 crore. The proceeding so initiated culminated in the passing of the order impugned in these appeals. The Commissioner found in favour of the Revenue and passed an order confiscating the goods, demanding differential duty and imposing penalties on M/s. Ketan Construction Ltd. and its Director Shri Harisinh Amarsinh Barad. We reproduce below the order portion of the impugned order: -