PHARMCHEM TRADERS Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) THE appellants imported 20 M.T. of Dicyandiamide (DCDA) declaring the invoice value thereof of US $ 650 P.M.T. C.I.F. Bombay, the supplier was M/s. Inter Export, Hongkong. The goods were of Chinese origin. During the enquiries conducted by the Customs Shri Jitendra Avlani, Proprietor admitted that the prevailing price was US $ 1700 PMT, that the goods were supplied by his brother, that the invoice was raised at a lower value, that the invoice value was remitted through the banking channel and the difference between the actual value and the invoice value was to be paid by him to his brother, who was the owner of M/s. Enter Export in Indian Rupees on his arrival in India. He further stated that a similar enhancement to the extent of US $ 1280 P.M.T. had been made earlier by Madras Customs House for the same goods of the same quantity imported by him. He submitted two invoices under which M/s. Jitendra Avlani, Hongkong had supplied the same goods to M/s. Inter Export at the price of US $ 1500 P.M.T. The various admissions were made by Shri Jitendra Avlani during the period 29 -1 -1992 to 7 -2 -1992.

(2.) THE Customs also recorded the statement of Shri Devang Avlani the nephew of the present appellant. In his statement he claimed that the suppliers namely M/s. Inter Export had purchased the DCDA from M/s. Jovian for about US $ 1500 PMT. Devang's father Narottam was the brother of Jitendra Avlani, the importer.

(3.) THE Commissioner in his impugned order confiscated the goods, permitted their redemption, imposed penalty of Rs. 5.00 lacs on the importers, and enhanced the value of the goods to US $ 1700 P.M.T. The appeal is against this order.