AUTO CONTROL (P) LTD Vs. COLLECTOR OF CUSTOMS

JUDGEMENT

(1.) THE Collector of. customs in the impugned order confiscated component parts of Electronic Typewriters covered by 12 Bills of Entry under Section 111(d) and Section 111(m) of the Customs Act, 1962. Since the goods had already been released, he ordered that a sum of Rs. 2.00 Lakh should be recovered from the Bank Guarantee in lieu of confiscation. The Collector also imposed a penalty of Rs. 50,000/ -. The Collector further ordered that the 12 Bills of Entry shall be assessed at the enhanced value. Being aggrieved by this order, the Appellants have filed the captioned Appeal.

(2.) THE facts of the case, briefly stated, are that Customs House collected intelligence indicating that the Appellant was importing complete typewriter in knocked -down condition under the guise of components for Electronic Typewriters and that some of the components were under invoiced. Accordingly, the goods were located and import documents were examined. On scrutiny of 8 Bills of Entry, it was observed that the goods imported were 250 kits each of Electronic Typewriters. In the examination report, it was stated that regarding the items still required to make the Electric Typewriter, 'party's declaration placed opposite may be seen'. Representative of the Importer had given declaration that 23 more items were to be added indigenously to the imported component to make the complete Electronic Typewriter. Importers furnished a further declaration in terms of Rule 10 of Customs (Valuation) Rules, 1988 to the effect that the Suppliers were M/s. Peekay Corporation, Japan. They also declared that similar goods were imported earlier. There was a general declaration that they had not received and did not know any other documents or information showing a different price; value, including the article payment whether as commission or otherwise. It was also confirmed by the Importers that they were not connected with the Suppliers otherwise as ordinary importers or buyers. Hundred percent examination of the goods was resorted to. It was found that the goods covered by the first set of 4 bills of entry, in each set constituted 250 kits of complete electronic typewriters and were in the form of assemblies, sub -assemblies of electronic typewriters. The containers had the markings of 'made in Japan'. Examination report made it clear that 2 sets of bills of entry contained 500 numbers of electronic typewriters. Samples were drawn from each lot in respect of each and every item shown in the invoice, as also of the goods found in the container.

(3.) FROM the documents submitted by the Importer, it was seen that their industrial licence was issued by the Ministry of Industries and that they were registered as a manufacturer of Electronic Typewriters, having a licensed capacity to manufacture 5000 numbers of electronic typewriters. Further, the Importers had approached the DGTD for getting a Phased Manufacturing Programme (PMP). For Getting this PMP, the Importer had submitted a list of PMP which showed the components to he imported and also the component to be manufactured or produced indigenously. On the basis of their application and statement submitted, the Ministry of Industry had issued a PMP. On scrutiny of this PMP, it was found that the PMP had stipulated inter alia some conditions, i.e. year -wise production, quantity, value, import content per typewriter and the percentage of import content. The 3 years programme was as under :