TMI Blog2004 (3) TMI 579X X X X Extracts X X X X X X X X Extracts X X X X ..... is being determined for the purpose of sub-section (1) of Section 125 ibid. The option to redeem the said goods on payment of the aforesaid fine will be open to them for 90 days of the receipt of this order. 2. It is further ordered that at the time of release of the goods, the aforesaid Noticees shall be required to pay the duty of Customs at the rates and the valuation as may be determined by the Assistant Collector of Customs, Rampur in terms of Section 15(1)(c)ibid. 3. The detained goods namely, 12460 dials, 16222 Nos. handsets valued at Rs. 6,23,000/- and Rs. 1,62,220/- respectively are also ordered to be released. 4. I, also impose penalties under Section 112 ibid on the following Noticees for the amounts indicated against each :- (a) Shri K.S. Gergan Rs. 25,000 (b) Shri M. Jagannath Rs. 30,000 (c) Shri H.V. Lalitha Kumar Rs. 25,000 (d) Shri M. Srinivas Rs. 1,00,000 (e) .............................. (f) .............................. (g) .............................. (h) .............. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entral Excise officers searched the office premises of Shri M. Jagannath, General Manager (Marketing), HMT Ltd., Bangalore and seized certain documents; that they also seized documents from other premises including the office premises, in Bangalore and New Delhi, of Shri S.S. Gupta, local representative of the French company; that statements of some senior executives (serving/retired) of HMT Ltd. and also of certain senior functionaries of the three other Indian companies viz. KHL, FWIL and IFTIL were recorded under Section 108 of the Customs Act; that, from all the evidentiary materials gathered by the investigating officers, it appeared to the department that M/s. HMT Ltd. had colluded, planned, organized, encouraged and managed to smuggle foreign watch cases, watch dials and other components into India through indigenous watch makers with intent to evade payment of customs duty; that it further appeared to the department that the Indian companies viz. KHL, FWIL and IFTIL had aided and abetted the evasion of duty, by providing their manufacturing facilities to M/s. HMT Ltd. and falsifying records; that, therefore, the Department issued the show cause notice to M/s. HMT Ltd. and o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not correct. He also relied on Order-in-Original No. 16/93, dated 16/23-9-93 (C. No. VIII/10/21/93-Cus., (Adjn.) passed by the Collector of Customs, Bangalore in adjudication of show cause notice No. 2/SIB/91, dated 25-10-91 issued to M/s. HMT Limited s Watch Factory at Tumkur (HMT-WFT, for short) and others. The said Order-in-Original held that the goods seized in that case, which were similar to the seized goods in the instant case, were only watch case parts and could not be considered as watch cases (notified goods) attracting Sections 11B and 123. It held the goods not liable to confiscation and dropped all proceedings against HMT-WFT and co-noticees. Learned Counsel further pointed out that no appeal had been filed by the department against the said Order-in-Original. He submitted that, though it had been specifically pleaded that some of the seized goods in the instant case had been imported by IFTIL and FWIL and that the back-covers of the wrist watches had been manufactured by KHL out of parts procured from the local market, the adjudicating authority dismissed the plea as not proved, regardless of the Bills of Entry and other evidence adduced by HMT-WFR. The Collector als ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have received responses from the registries of the Tribunal s South Zonal Benches at Chennai and Bangalore. The Assistant Registrar at Chennai has reported that as per his office records relating to the years 1993, 1994, 1995 and 1996 no appeal was filed against Order-in-Original No. 16/93, dated 16/23-9-93 of the Collector of Customs, Bangalore. The Assistant Registrar at Bangalore has also reported that no such appeal was received by that office. 6. We have carefully considered the submissions. The learned Senior Advocate has heavily relied on Order No. 16/93 passed by the Collector of Customs, Bangalore, whereby goods similar to the seized goods involved in the instant case were held to be items other than watch cases and not liable to confiscation. That order was passed in respect of another watch factory of M/s. HMT Ltd. We have found that the Revenue has accepted that order and the findings contained therein have become final and binding on both sides. One of the findings of the Bangalore Customs Collector is that M/s. KHL had procured certain parts from the local market and manufactured watch cases. Another finding is that Shri Chandulal was actually involved in the trans ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the officers of HMT, Munnier Shri S.S. Gupta, the local representative of Munnier and the visit of the representative of the said French Company during 1990 to discuss various defects and short-comings in the supplies defected pertaining to various models when, in fact, the only models supplied by Munnier were 2000 Nos. each models 1000/130 and 100/30 directory to HMT. To raise money for the supplies effected to WFR, Shri M. Srinivas with the help and connivance of Ranjit Kanunga, Devi Chand and Suresh Shah, floated 8 fictitious/front firms from where a sum of Rs. 6,54,33,546.79 was siphoned out of KHL. The stand of Shri M. Srinivas and Ranjit Kanunga that supplies were effected by on Shri Chandulal of Bombay was a figment of their imagination. No such person by the name of Chandulal existed and only to cover-up the illicit procurement of IB cases supplied, Chandulal was created. In fact, it appeared more likely that the Recipient of the funds was Nagin Kothari and/or Sunil Kothari who, on more than one occasion, visited Munnier along with M. Srinivas. It was preposterous to say that M. Srinivas had met the said Chandulal, if any, only on one occasion when he had procured goods wo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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