1990 (3) TMI 226 - AT - Customs

Summary

Issues: Misdeclaration of imported goods, under-invoicing, confiscation of goods, enhanced invoice value, intention to evade duty, reliance on seized documents, corroborative evidence, confirmation of Additional Collector's order.

The case involved two appeals concerning the import of Cleaning Cassettes from Hong Kong, where the appellants were accused of misdeclaration and under-invoicing. Following a search operation at various premises, including those of the appellants and related entities, several documents were seized, such as statements of accounts, a scribbling pad, and blank signed letterheads. The show cause notice alleged misdeclaration and proposed confiscation of the goods, citing comparable imports with enhanced values. The Additional Collector enhanced the invoice value from HK $ 0.45 to HK $ 0.85, confiscated the goods, and imposed fines and penalties, leading to the present appeals.

The appellants argued that the goods were not labeled, the comparable imports were not valid evidence, and there was no intention to evade duty. They contended that the declared value should be accepted, citing precedents and normal import procedures. They also claimed lack of evidence against them and discrepancies in the statements and documents relied upon by the authorities.

The respondents, however, maintained that the seized documents and statements, particularly that of Shri O.P. Marda, confirmed the misdeclaration by the appellants. The Additional Collector's decision to enhance the value was based on this corroborative evidence, including the statement of account, scribbling pad, and explanations provided by Shri Marda. The statements and documents supported the conclusion that the actual value of the goods was HK $ 0.85, justifying the confiscation and penalties imposed.

Ultimately, the Tribunal upheld the Additional Collector's order, emphasizing the consistency between the seized documents and Shri Marda's statement regarding the actual value of the imported goods. The Tribunal found no reason to interfere with the decision and dismissed the appeals, confirming the confiscation and penalties imposed.