KANWALJIT SINGH & ORS. Vs. CC

JUDGEMENT

(1.) THESE are 11 appeals filed by 5 companies and certain individuals who are proprietors thereof with respect to Order -in -Original No. 1/99 -SIB dated 20.1.1999 passed by the Commissioner of Customs, Cochin. The issue concerns the assessment to duty of imported worn clothing and other worn articles including unserviceable garments. Heard Shri K. Jeyachandran assisted by Shri S. Venkatachalam, learned Advocates for the appellants and S/Shri S. Kannan and S. Sankaravadivelu, learned DRs for the revenue.

(2.) LEARNED Advocate submits that all these imports by different legal entities was considered for adjudication at the original stage by a single show cause notice. However, in view of : 1988 (38) ELT 19 (All) : 1988 (18) ECR 639 (All), wherein the Hon'ble High Court of Allahabad has held that single show cause notice for joint proceedings for more than one person is not permissible under law. Learned Advocate submits that on this count alone there is a glaring infirmity in the order impugned.

(3.) THIRDLY , learned Advocate submits that in view of this grossly enhanced re -valuation, the redemption fine and penalties imposed are also very high and totally unfair being at 300% of even this highly enhanced (sic) value. He submits that as per Section 125 the fine shall not exceed the price of the goods minus the duty, whereas, in this case it is pegged at 300% of the price. He submits that there is no classification dispute in the order except that certain goods have been found to be not mutilated or properly mutilated and, therefore, have been held to be serviceable garments. On the question of quantum of redemption fine and penalty that could be levied in such cases, learned Advocate cites the decision of this very Tribunal vide Final Order No. 2603/98 dated 17.12.1998 in the case of M/s. Amtex Woollens, following a number of earlier proceedings, it has been held that for these items a redemption fine of 25% of the c.i.f. value and a penalty of 5% thereof should be conducive to justice. He further submits that their value has been ascertained per kg and not on per piece basis.