TMI Blog2013 (9) TMI 28X X X X Extracts X X X X X X X X Extracts X X X X ..... favor of assesses. - Appeal Nos. C/1659/2010 to C/1663/2010 - - - Dated:- 15-3-2012 - Mr. P.G. Chacko and Mr. M. Veeraiyan, JJ. For the Appellant: Mr. C.K. Karunakaran, Advocate For the Respondent: Mr. P.R.V. Ramanan, Special Counsel JUDGEMENT Per: M. Veeraiyan 1.1 Appeal No. C/1659/2010 is by M/s. M.S Enterprises challenging the order of the Commissioner demanding differential duty of Rs. 2,76,29,384/-, confiscating goods with option to redeem the same on payment of fine of Rs. 70 lakhs and imposing penalty of Rs. 35 lakhs. 1.2. Appeal No. C/1660/2010 is by M/s. Mohammed Fariz Co. challenging the order of the Commissioner demanding differential duty of Rs. 2,54,97,969/-, confiscating goods with option to redeem the same on payment of fine of Rs. 60 lakhs and imposing penalty of Rs. 30 lakhs. 1.3. Appeal No. C/1661/2010 is by M/s. Shabeer Enterprises challenging the order of the Commissioner demanding differential duty of Rs. 2,11,70,522/-, confiscating goods with option to redeem the same on payment of fine of Rs. 52 lakhs and imposing penalty of Rs. 22 lakhs. 1.4. Appeal No. C/1662/2010 is by M/s. P.K. Traders challenging the order of the Commissione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment indicating higher price for imports by the said M/s. Integrated Traders from one of the Indonesian suppliers namely C.V. Mulia Karya. ii) Documents relating to import by one M/s Nageshwari Match Works which was subjected to investigation by DRI Chennai and enhanced value accepted by the said importer. iii) The report of First Secretary (Commerce), High Commission of India at Singapore regarding the export prices of Betel nuts during the relevant period. iv) Import prices from Sri Lanka which were ranging from USD 850 to USD 1500 per MT. 3.3. The importers resisted the proposal for rejection of the declared value and enhancement of the value as proposed in the show-cause notices. 3.4. Commissioner, after considering the replies, rejected the defense submissions and rejected the declared values and held that the values have been under-declared and ordered confiscation of the imported goods; he demanded differential duties based on enhanced values; he also imposed penalties on the importers as mentioned above. The importers have filed these appeals challenging the above orders. 4. Learned counsel for the appellants challenges the orders on various grounds and importan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons should be given for rejecting the same. (g) The confiscation is not justified. Alternatively, the redemption fines imposed are arbitrary and on the higher side and the appellants would be put to heavy loss if the same are sustained. 5. Learned Special Counsel supported the orders and made the following submissions: (a) Documents were seized under a valid Mahazar from M/s Integral Traders while conducting search of premises of 7 importers including M/s Integral Traders. Copy of the document issued on the letter head of the Indonesian supplier, C. V. Mulla Karya which was relied upon was supplied to the appellants. The seizure of the document is not denied by M/s Integral Traders. Separate proceedings have since been initiated against the said M/s Integral Traders and the same is in progress. (b) The value of import by M/s Nageswari Match Works is relevant as the same was as per the contract copies of which were seized from the importer and the CHA and the value specified in the said contract was accepted by the importer and the CHA. (c) The First Secretary, High Commission, Singapore is the appropriate authority competent to furnish authentic trade information from ASE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relied upon to allege undervaluation by the appellants, no proceedings have been initiated against the said M/s Integral Traders. However, on behalf of the department it is claimed that the proceedings have since been initiated. We are of the considered opinion that the document said to have been recovered from M/s Integral Traders could be relied upon only after providing the Panchnama under which the said document was recovered. This has not been admittedly done and therefore, there is a clear violation of principles of natural justice. 6.2. The appellants have also claimed that the import of betel nuts by M/s Nageswari Match Works cannot be compared. Commissioner has appreciated that the quantity imported in the said case substantially differs from the cases at hand. It is not clear whether the submission that the provisionally assessed value was enhanced based on acceptance by the said M/s Nageswari Match Works was made before the Commissioner. He has also not elaborated the reasoning for coming to the conclusion that the said import documents substantiates a misdeclaration of value by importers. 6.3. We find that the Commissioner has not adequately dealt with the contenti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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