(1.) THESE are two appeals, one filed by M/s. Filament India Ltd. the importing Company and the other filed by Shri K.G. Bajoria, Managing Director of the Company against Order -in -Original passed by the Commissioner of Customs, New Delhi dt. 10.10.97. A duty demand of Rs. 81,034 was confirmed against the appellant company and Poly Propylene filament yarn and partially oriented yarn imported under two Bills -of -Entry dt. 5.2.97 valued at Rs. 48,01,363 from Dubai was ordered to be confiscated under Section 111(m) of the Customs Act, 1962 and redemption fine of Rs. 5 lakhs imposed. Penalty of Rs. 50,000 on M/s. Filament India Limited and Rs. 10,000 on Managing Director, Shri K.G. Bajoria were also imposed under Section 112(a) of the Customs Act. Duty of Rs. 81,043 was also confirmed.
(2.) THE Department's case is that the goods imported by the appellant company were not of Taiwar Origin as claimed by the importers but were actually goods of Indian origin, the goods having been exported from India earlier to Dubai by another Indian Co. viz., M/s. Parasrampuria Synthetics Ltd. The Department alleged that the goods were exported by M/s. Parasrampuria Synthetics Ltd. to M/s. Topline International, Dubai at the rate of US 3.55 and US 3.45 per kg. CIF Dubai. The Department sought to reject the CIF transaction value of US 1.40 per kg. between the appellant importers and M/s. Khalifa General Trading, Dubai who exported the impugned goods to India. The Department sought to reject the transaction value on account of the wide difference between the price at which the goods were exported by M/s. Parasrampuria Synthetics Ltd. and the transaction value shown by the appellants in the Bills -of -Entry. As per the Show Cause Notice (SCN) dt. 2.7.97, the Department proposed to value the imported goods under Rule 7(1) of the Customs Valuation (Determination of Price of Imported Goods) Rules, 1988, after allowing the permissible deductions. The SCN also proposed valuation of the goods on the basis of identical or similar goods as envisaged under Rules 5 and 6 of the said Rules. Confiscation of the goods under Section 111(m) and imposition of penalty was also proposed. Penalty on the Managing Director, Shri K.G. Bajoria, under Section 112(a) was also proposed.
(3.) THE matter was adjudicated by the Collector of Customs resulting in the impugned order.