9911796707
TMI Blog2015 (2) TMI 175X X X X Extracts X X X X X X X X Extracts X X X X ..... lters/Screen Dust Filters, Fuse, Magnetic thermal strip, Nilos type Ring, PSU of various models, Cable Assembly for Dual PSU, Seal-O-Ring, Steel Flat, Limit switch and Reed Switch, Transducer Assembly, Strip, Tension Pulley, Seal EPDM and Strip Seal, Wire Cloth/MTSC Wire Cloth, PSU Assemblies, etc., from their suppliers. The Appellant importer has been describing the goods, in the Bills of Entry filed for clearance of the said imported goods, as 'Parts of Rice Mill Machine', 'Parts of Sortex M/C for Sorting of Seed Grain or Dried Leguminous Vegetables' and 'Parts of Flour Mill Machine' and classifying the goods under CTH 8437 90 10/8437 90 20/8437 90 90 and clearing the goods at nil rate of Additional duty under Section 3(1) of the Customs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... U Assemblies, are being assembled by the importer into such machineries. Further, the importers have classified such goods under CTH 8437 90 10/8437 90 20/8437 90 90, as parts of machines for cleaning, sorting, etc. However, from the technical details provided and the statements of the representatives of BIPL, it appeared that the above goods have been classified wrongly and have to be classified according to the Section Notes and Chapter Notes of the Customs Tariff Act, 1975. 2. On this basis, proceedings were initiated which has culminated in confirmation of the demand for customs duty of Rs. 76,88,454/- with interest and penalty equal to the amount under Section 114A of Customs Act, 1962 and a penalty of Rs. 5.5 lakhs under Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... airness, not contested the classification of goods proposed in the show cause notice. It has been contended that the goods were inadvertently classified under the heading relevant for 'parts of rice milling machine'; that they had described the goods correctly; and that there was no mis-declaration. As such, the show cause notice should not have been issued in terms of Section 28(1)(b) and 28(2) of the Customs Act, 1962 and no penalty is leviable. In view of this, the issue left to be decided is whether there was a mis-declaration and whether the noticees are liable for penalty or not. 27. It has been alleged in the show cause notice that the notice willfully camouflaged the description and misclassified the goods and thereby evaded d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Part of Rice Mill M/C)'. (v) In Bill of Entry No. 820968, dated 1-8-2008, the 'fan' was declared as 'fan 24V RG 160-28/14 NR P/N : 62568 (Part of Sortex M/C)". As brought out in Annexure I of the show cause notice, in all Bills of Entry the items/parts imported have been declared to be parts of specific machines and not parts of general use, as illustrated above. Further, the material of which such parts/items are made of was also not declared. It is important to note here that in terms of relevant Section Notes these parts/items have to be classified based on the material of which they are made of. Therefore, I find merit in the allegation made in the show cause notice that the description of the goods was camouf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eneral use, this claim clearly is a misdeclaration. 8. Under these circumstances, as held by the learned Commissioner, the provisions of Section 28 which provides for non-issue of show cause notice wherein the importer pays the entire amount of duty with interest would not be applicable to the appellants at all. Therefore, this claim of the appellant's counsel that no proceedings should have been initiated cannot be accepted and is denied. Similarly the duty demand and the interest thereon also has to be upheld as not contested. 9. Since the misdeclaration has been established and appellant is not eligible for the benefit claimed by them, it is clearly a case of misstatement of facts and as a result appellant is liable to penalt ..... X X X X Extracts X X X X X X X X Extracts X X X X
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