TMI Blog1999 (3) TMI 200X X X X Extracts X X X X X X X X Extracts X X X X ..... on 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 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CPL had projected to the DGTD as manufacturer of Electronic Typewriters by using imported as well as indigenous components as per PMP. 5. Import of printed material was also noticed. Scrutiny of the invoices showed that printed matter contained instructions manual for typewriters, unpacking instructions, instructions manual for memory function, with markings of `Nakajima All Co. Limited . It appeared that the imporer had imported 100% electronic typewriter. Thereafter, Shri Vinayak M. Barve of M/s. Supargal Electronics, an independent technician of Electronic Typewriters was contacted and was requested for his opinion about the parts required for assembly of a full typewriter and to assemble these parts. He assembled 2 Typewriters out of the seized representative samples. He stated that these two assembled typewriters bearing Model Nos. 475X and 395M are complete in all respects componentwise and no components were required except for one drive belt in Model No. 475X with part No. 330-60600. Subsequently on 3-5-1991, Shri Barve again assembled 2 Typewriters out of 3 sealed samples and gave a certificate on 3-5-1991 that he had assembled 2 typewriters of Model No. 475X and Model N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he components required for the manufacture of electronic typewriters. 11. As per the Import Trade Control Policy for the relevant period, import of complete Typewriters was prohibited as the same was treated as consumer goods. Sl. No. 176 of the Appendix 2B of the Import Policy AM 91 also stated that all the consumer goods under SKD condition including the sub-assembly thereof were to be treated as restricted goods. The import of the goods was allowed only against a valid and proper import licence. In the instant case, the Department noticed that M/s. ACPL had been importing complete typewriters in dismantled form with the sole intention of reassembling complete typewriters after import and effect the sale of the same in Indian market. It appeared that there was no manufacturing activities undertaken by this firm. 12. On scrutiny of the import licence, it was found that the same was filed only for certain components and as such it could not cover the full assembly of electronic typewriters in any form. The Department alleged that the importers imported goods valued at Rs. 19,83,930/- in contravention of import-trade control regulations. 13. It was also noticed that the import ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the conclusion that the plaintiffs had imported 51 RIXE moped in completely knocked down condition. It was contended by the Appellants that the above decision of the Apex Court fully covers their case and thus there was no violation of the Import policy. They also distinguished the decision of the Apex Court in the case of M/s. Sharp Business Machines Pvt. Ltd. v. C.C.E., [1990 (49) E.L.T. 640] 15. On the Question of valuation, it was contended by the Appellants that they have no special relationship with the foreign supplier; that the Indian Importer had not collaborated or was not an agent of M/s. Nakajima All Co. Ltd. of Japan. On the Question of loading of value of the imported consignment under Rule 7 of the Valuation Rules, the Department had relied on 2 documents out of which one is a Fax message and the other is the proforma invoice. It was contended that the Appellants had not accepted the price quoted in the proforma invoice; that they negotiated the price over phone and another proforma invoice was sent. After careful consideration of the submissions made by the Appellants, the ld. Collector of Customs held as indicated above. 16. Shri J.S. Agarwal, the ld. Counsel a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he ld. JDR reiterated the findings of the ld. Adjudicating Authority. 19. We have heard the submissions of both sides. We find that the Appellants held an industrial licence. They were permitted to undertake a Phased Manufacturing Programme (PMP). In terms of the PMP, they were required to indigenize year after year. The present imports pertain to the third year of PMP. In the third year, the total percentage was 13.40% as imports. We note that the admitted position in the present case was that complete typewriters were imported in knocked-down condition. Thus, the PMP was not at all followed by the Appellants. Hence, there is a violation of the restrictions imposed under the PMP. We have perused the rulings of the Apex Court in the case of M/s. Sharp Business Machines Pvt. Ltd. as well as in the case of Union of India v. Tarachand Gupta (supra). We find that the decision of the Apex Court in the case of M/s. Sharp Business Machines Pvt. Ltd. is apt and more appropriate to the facts of the present case. In that case, a certain percentage was fixed upto which the goods can be imported. In the instant case, a certain percentage was fixed here also. The PMP was not complied with and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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