ESSENJAY MARKETING P. LTD Vs. CC

JUDGEMENT

(1.) THESE two appeals are filed by the same appellants. The facts being identical, these are being disposed of vide this single order.

(2.) THE appellants are indenting agents for machinery. On the basis of orders processed by them, two importers viz. Indian Telephone Industries and M/s Sumax Precision, Pune imported "precision coordinate Jig Boring Machines" and claimed benefit of concessional rate of duty in terms of Notification No. 40/78. Pursuant to certain information, these cases were examined along with several other cases of similar imports. After the issue of Show Cause Notices, the cases were adjudicated whereby the benefit of the notification was denied, differential duty was confirmed and penalties were imposed on importers, as well as on the present appellants. The charge against the present appellants was that they had in association with the suppliers caused catalogues to be printed describing the machine in a manner which would enable their clearance under OGL and also enable them to qualify for the benefit of the cited notification. The ld. Collector in dealing with the involvement of the present appeals held as follows:

(3.) THE indenting agents, M/s. Essenjay Marketing were not merely indenting agents in these cases but they actively connived and co -operated not only with the foreign supplier M/s. Mikron AG in changing the catalogue for these cases but actively aided and abetted the Indian importers by advising them to import these goods under OGL and with exemption Notification by mis -declaring their description. The contention of Mr. Srinivasan that his client acted only as indenting agent and had no interest in the goods which were imported under OGL and with exception from payment of duty is therefore, not acceptable at all. The indenting agents action have gone beyond their normal function of indenting agents and in their enthusiasm to sell these machines in India, they actively aided and abetted the Indian importers in mis -declaring these machines so that these could be imported under OGL and with exemption Notification. They are also therefore, liable to penalty under Section 112(a) of the Customs Act, 1962.