9911796707
TMI Blog2004 (3) TMI 546X X X X Extracts X X X X X X X X Extracts X X X X ..... GL and on payment of duty and by declaring CIF value US $ 70,000. The consignment was shipped by Four A Investments Inc. USA. As per the Import Policy 1992-97 second-hand capital goods could be imported without a licence in the garment/hosiery/made-ups sector provided that the machines were not more than 7 years old and had minimum residual life of 5 years and shall be subject to actual user condition. Based on information that the year of manufacture as well as the value of machines had been misdeclared with a view to circumvent ITC provisions and to evade Customs duty, DRI officers searched the premises of the importer-company and recovered certain documents including proforma invoice dated 2-11-1992 issued by the shipper to the importer- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nbsp; Whether the year of manufacture of the imported second hand machines is 1986 as declared, or whether the same are more than seven years old. (b) Whether the transaction value represents the correct value of the goods. 3. The finding that the machines in question are more than seven years old is based upon inquiries conducted with the help of German Customs Authorities who have confirmed inter alia as under :- "Another firm Vogtland Machine Factory AG Plauen was formed during twenties from the firm J.C.U.H. Dietrich. Vogtland Plauen firm stopped producing Schiffli textile machines after 1936, afterwards they switched over to the production of goods, vehicles and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0. (iii) Local enquiry was conducted with M/s. Jay Cee Enterprises Pvt. Ltd., New Delhi also and in reply vide his letter no. JA/1, dated 14-6-1993, Shri J.C. Malhotra, Managing Director of the Company, inter alia. stated that Schiffli and zings machines are no more being manufactured. (iv) A press report appeared in Impex Times of March, 1993 published from Bombay, inter alia, saying that Plauen Schiffli company in Germany was bombarded in Second World War. (v) Local enquiry was conducted with the indenting company M/s. Munshiram B.Sc. New Delhi also about two zings multihead embroidery machines imported by the importer. Vid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... holds less than 5% shares in the supplier company and the supplier company and the importer-company which are both artificial legal entities are not related persons. 5. In the result we hold as under :- (a) We uphold the finding of contravention of ITC Policy and confiscation of the goods. (b) We set aside the enhancement of value and hold that the transaction value is required to be accepted. (c) Duty demand is set aside. (d) Appropriation of security is reduced to Rs. 5 lakhs, in view of our finding on issue No. A. (e) Penalty ..... X X X X Extracts X X X X X X X X Extracts X X X X
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