TMI Blog2015 (4) TMI 416X X X X Extracts X X X X X X X X Extracts X X X X ..... wala deal. K.S. Sultania being proprietor of Ms/ Pearly Electronics and other 3 firms were created by him making benamidars proprietor thereof, Revenue lifted corporate veil in para 7(Vii) of Show Cause Notice at page 17 thereof. Duty was imposed on Pearl Electronics on its own imports as well as imports made in the name of other 3(three) dummy firms created by him, treating K.S. Sultania as the owner thereof. Penalty of ₹ 15.00 lakhs was imposed on Shri K.S. Sultania for contravention of provisions of law and penalty of ₹ 10.00 lakhs was also demanded from M/s Sultania & Co. finding involvement of his son in that firm. Appellants contention that joint and several liability is not permissible does not appeal to have basis. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at Bhusan as proprietor and M/s Wonder Trade Links, D-251, IInd Floor, Laxmi Nagar, Delhi-92 (hereinafter referred to as M/s Wonder Trade ) in the name of Sri Atul Jain. Sri K.S. Sultania was noticed to be master mind behind the mis-declaration of description of the goods as well as undervaluation of imports made by him as well by above said firms and defrauded Revenue evading Customs duty to the tune of ₹ 1,05,69,871/-. Mis-declaration was prima facie established when identical/similar goods of same brand were being imported by other importers at the same commercial levels, at a much higher value. 3. Sri K.S. Sultania managed under-invoicing of the electronic components in connivance with foreign suppliers for import of the offend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ove 4 (four) firms owned and controlled by Sh. K.S. Sultania as was alleged in Annexure A-1, A-2, A-3, A-4 and A-5 of the show cause notice. Evidence relating to indentical/similar import of goods made by M/s Protonics Systems India Pvt. Ltd., 190-191, Sant Nagar, East of Kailash, Delhi, M/s Electronics Realy India Pvt. Ltd., 93-A, Industrial Suburb Yeshwanthpur, Banglore, M/s Texla Enterprises, A-72, Okhla Industrial Area, Phase-II, Delhi, M/s Fortune Devices, 1693/5, Seth Fakir Chand, Bhagirath Place, Delhi, M/s Philips Electronics India Ltd., Kolkata and M/s Rama Krishna Electro Component Pvt. Ltd, 351, Mini Aggarawal Plaza, Netaji Subhash Place, Pitampura, New Delhi proved misdeclaration of value and description of goods against the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 46(1) (4) of the Act ibid, Rule 10(3) of Customs Valuation (Determination of Price of Imported Goods), Rules, 1988 as well as Rules 11 14 of the Foreign Trade (Regulation) Rules, 1988 for the mis-declaration of value and description of goods. However redemption thereof was allowed on payment of redemption fine of ₹ 50,00,000/- (Rupees Fifty Lacs only) in lieu of confiscation under Section 125 of the Customs Act, 1962. (iv) Penalty of ₹ 15,00,000/- (Rupees Fifteen Lacs only) was imposed on Mr. K.S. Sultania for contravention of provisions of section 112(a) (b) and section 114A of the Customs Act, 1962. (v) Penalty of ₹ 10,00,000/- (Rupees ten lacs only) was imposed on Mr. Sunil Sultania S/o Mr. K.S. Sultania, P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... prise. His hawala deal came to notice of DRI. He was circulating black money and fabricating invoices to under value the imports as well as channelizing differential value to exporter. Undervaluation was established fact when other importers were examined and truth revealed by them. 11. NIDB data proved mis-declaration of imports. Differential value was going to importers through a channel well known to K.S.Sultania which could be unearthed upon investigation. When fraud was detected and deliberate suppression of assessable value were discovered by investigation, plea of time bar does not help an evader for which the appellants fail in their submission. Therefore the stay application should be dismissed. 12. Heard both sides and perus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) of Show Cause Notice at page 17 thereof. Duty was imposed on Pearl Electronics on its own imports as well as imports made in the name of other 3(three) dummy firms created by him, treating K.S. Sultania as the owner thereof. Penalty of ₹ 15.00 lakhs was imposed on Shri K.S. Sultania for contravention of provisions of law and penalty of ₹ 10.00 lakhs was also demanded from M/s Sultania Co. finding involvement of his son in that firm. Appellant s contention tht joint and several liability is not permissible does not appeal to have basis. At this stage when corporate veil was lifted as stated above, there is no scope of grant waiver of pre-deposit. So also mis-declaration was based on evidence gathered by investigation. Plea o ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
