ASHWANI KUMAR JAIN Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) M/s. Meerut Exim, Meerut, imported two consignments of ball bearings and got them cleared through Inland Container Depot (ICD), Meerut during June -July, 2000. The first consignment was declared at a value of over Rs. 27.4 Lakhs and was cleared under Bill of Entry No. 00023, dated 5 -6 -2000. The second consignment was declared at a value of over Rs. 27.6 Lakhs and cleared under Bill of Entry No. 00026, dated 17 -7 -2000. Though originally both the consignments were cleared after assessing them to duty at the declared import price, the second consignment was seized from the godown of M/s. Dooab Exim, Meerut on 18 -7 -2000 by officers of Directorate of Revenue Intelligence. The seizure was of 7,76,945 pcs. upon a finding that the country of origin, brand name and quantity of ball bearings had been misdeclared in the customs clearance documents and there was large evasion of duty. At the time of seizure, the value of the consignment was estimated at Rs. 3.60 crores. It was found that the bulk of the consignment was of Japanese origin, even though they had been declared to customs at the time of clearance as of Chinese/Russian origin. During the investigation, Shri Ashwani Kumar Jain, Proprietor of M/s. Meerut Exim. admitted to misdeclaration and undervaluation of the goods. He also deposited an amount of Rs. 85,73,179/ - towards duty evaded. Consequently, show cause notice dated 15 -1 -2001 was issued proposing to confiscate the goods in question, demand short -levied duty on the two consignments and to impose penalties on many persons alleged to be involved in the offence. The proceedings so initiated was adjudicated by the Commissioner of Customs and Central Excise, Meerut by passing the order impugned in these appeals. Briefly stated, the Commissioner rejected the values declared on both the Bills of Entries and refixed the values. A value of about Rs. 91 Lakh was fixed in respect of the first consignment cleared under Bill of Entry No. 00023, dated 5 -6 -2000. For the second consignment a value of about Rs. 1.53 crores was fixed. Based on the enhanced value, a duty demand of about Rs. 1.2 crore was made. The Commissioner also imposed different penalties on various parties. The order portion of the adjudication order is reproduced below : -

(2.) The present appeals from Shri Ashwani Kumar Jain and Shri Balbir Singh are directed against the above order. Appeal No. C/78/2002 -A, Shri Ashwani Kumar Jain The first appellant, Shri Ashwani Kumar Jain is the proprietor of M/s. Meerut Exim, Meerut. The contentions raised by the appellant are in regard to penalties imposed on him and his firm and redemption fine for the goods. The valuation and duty demands were not challenged at the adjudication itself.

(3.) With regard to the penalty, the submission of the appellant is that the Commissioner was in legal error in imposing separate penalties on the proprietor of the importing firm and the firm, because it is well settled that, a proprietor and his firm are not two entities. They are one and the same. Similarly, it is being pointed out that the Commissioner was in error in imposing separate penalties under Sections 112 and 114A of the Customs Act. The last submission is that the penalties imposed are extremely high and are unjustifiable harsh.