9911796707
TMI Blog2016 (7) TMI 148X X X X Extracts X X X X X X X X Extracts X X X X ..... itored. 2.1 The movement of the respondent was found to be abnormal and suspicious right from his emergence from aerobridge as was evident from the fact that after moving forward from the aerobridge, he turned back and entered the toilet situated at aerobridge near gate No. 19-B along with his hand carry bag following one person who was identified as Shri Kawaldeep Singh, an employee of M/S. IDDS, C/o M/S DIAL (holder of Airport entry Card no. A- 109454 issued by BCAS dated 03.01.2012) & resident of WZ-D- 60, Street No.60, Krishna Park, Tilak Nagar, New Delhi- 110018. The Customs Officer on surveillance also entered the toilet to watch their movements and found that both Shri Kawaldeep Singh and the PAX entered inside the toilet enclosures adjacent to each other. 2.2 The passenger handed over four (4) packets tightly wrapped with cello tape to Shri Kawaldeep Singh by sliding them underneath the open space between the two adjacent toilets partition. After handing over the four packets to Shri Kawaldeep Singh, the passenger moved out of the toilet and after some time Shri Kawaldeep also came out of the toilet. Thereafter, the passenger moved to the immigration counter and Shri Kawa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom Hongkong to Bangkok by Flight no, TG -607 dated 12.01.2012 and from Bangkok to New Delhi by Flight no. TG-323 dated 13.01.2012; that he brought some memory cards from Hongkong ; that after disembarking, at IGI Airport, New Delhi from Bangkok by Flight no, TG-323, he contacted Shri Kawaldeep Singh on mobile no. 9999504343 from his mobile no. 9811740711 and informed that his flight had landed; Shri Kawaldeep Singh informed him that he would wait at the gate and he (pax) was to follow Shri Kawaldeep Singh; that as decided, Shri Kavaldeep Singh was waiting at the gate and on seeing him Shri Surinder Singh Arora, started following Shri Kawaldeep; that Shri Kawaldeep took him to a toilet: that he handed over four packets containing memory cards underneath the open space o? the toilet's partition to Shri Kawaldeep which he (pax) was supposed to receive back from Shri Kawaldeep outside the IGI Airport, in the toilet of Metro Station (outside the IGI Airport); that these four packets contained approximately 8020 pcs. of memory cards of 2GB each; that he on earlier occasion on 29.12.2011, brought 4000 memory cards which were cleared through Shri Kawaldeep in the same fashion; that fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hose four packets inside the long socks which he was wearing, he came out of Customs exit gate and reached the toilet situated in Delhi Metro Airport station (outside IGI, Airport) where the Pax Shri Surinder Singh Arora was already waiting for him, that he handed over the said packets to Shri Surinder Singh Arora and in return Shri Arora paid him Rs. 3000/- for job done by him. Similarly on 13.01.2012, the same modus operand was adopted the only difference was this time it was toilet near the gate No. 19-B on the departure side of the Airport. That as he came out of the toilet, an officer in plain clothes guided him to the preventive room of Customs situated near the exit gate of the International Arrival Hall; that a Customs Officer took his personal search in the presence of two independent witnesses which resulted in the recovery of 04 (Four) packets from the long woolen socks which he was wearing; that on opening of these packets approximately8020-memory cards officer seized the said memory card under Section 110 of Act, ibid on a reasonable belief and that he was supposed to get Rs. 4000/- from the Shri Surinder Singh Arora on delivery of memory cards outside the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Dee, 2011, he brought approximately 4000 memory cards, which he handed over to Shri Kawaldeep in the toilet at Aerobridge & Shri Kawaldeep delivered the packets of memory cards to him at Metro station outside the IGI Airport; that for bringing memory cards out of IGI Airport he paid Rs. 3000/- to Shri Kawaldeep Singh at that time ; that this time he brought approximately 8000 memory cards, which Shri Kawaldeep was to deliver outside the Airport to him; that this time also it was decided to pay Rs. 4000/- to Shri Kawaldeep Singh on completion of the said work. 2.11 Shri Gurpreet Singh, S/o Shri Surinder Singh Arora, (pax) appeared before Customs officer on 17.01.2012 and tendered his voluntary statement under Section 108 of the Act ibid on 17.01.2012, wherein, he inter- alia stated that Shri Kawaldeep Singh was his friend; that they came in contact through facebook on internet ; that through internet he came to know that Shri Kawaldeep was residing in his neighborhood & was working at IGI Airport, New Delhi; that they often met in Gymnasium located in their locality; that as the friendship developed they started visiting each other houses; that during one of his visits, he introd ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce and collusion with each other attempted to smuggle the illegaly imported goods i.e. Memory Cards without payment of duty, as is evident from the above stated facts. 2.14 It, cumulatively appeared that the pax not only tried to mislead the department but also stated deliberately the facts contrary to avoid the truth in the disembarkation slip (customs portion). Hence, it appeared that the pax, Shri Kawaldeep Singh and Shri Gurpreet Singh are liable to penalty under section 112 of the Act ibid for the acts of their omission and commission committed by them. A Show Cause Notice bearing dated 09.07.2012 was issued to Shri Surinder Singh Arora and others, to show cause to the Additional Commissioner of Customs IGI Airport, Terminal-3, New Delhi, within 30 days of the receipt of show cause notice, as to why: (i) Free allowance of Rs. 25000/- (as was applicable at the material time) should not be denied to Shri Surinder Singh Arora on account of various acts of omission and commission committed by him. (ii) goods i.e. 8020 nos. of memory cards of 2 GB each, totally valued at Rs. 12,03,000/- should not be held liable to confiscation under Section 111(1) & (m) of the Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the said Order-in-Original, applicant filed appeal before Commissioner (Appeals), who in its Order-in-Appeal No. CC(A)/CUS/362/2013 dated 11.07.2013 observed that at the outset it is already an admitted fact that no market enquiry was conducted in this case and also that there is no evidence on record about existing market value of impugned goods. He further observed in para 6 of his Order in-Appeal dated 11.07.2013 that Adjudicating Authority himself provided abatement of 40% in several cases at IGI Airport, New Delhi. Therefore, vide his above mentioned Order-in-Appeal he modified the Order-in-Original by directing Adjudicating Authority to recalculate the value of goods recovered after extending 40% abatement on the market value and duty was to be recovered accordingly and in view of the given circumstances, following revision of value and higher duty rates, Redemption Fine was reduced to Rs. 1,50,000 /- from Rs. 4 lakhs under Section 125 of the Act ibid and penalty to Rs. 1,50,000/- from Rs. 2.5 lakhs under Section 112 (a) of the Act ibid upon Shri Surinder Singh Arora. 4.Being aggrieved by the impugned Order-in-Appeal, the applicant has field this revision application unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cific information about the respondent Shri.Surinder Singh Arora that he would be carrying the impugned goods on flight No. TG-323 on 13.01.2012. It was observed by Customs Officers that upon arrival he handed over 4 packets to Shri Kawaldeep Singh an employee of M/S. IDDS c/o DIAL in the toilet of IGI Airport. Upon detailed examination of baggage and personal search of both the persons, 4 packets wrapped in brown colour tape containing 8020 nos of 2 GB memory cards valued at 12,03,000/-@ Rs. 150/- piece after allowing abatement of 25% on market value/ were recovered from Sh. Kawaldeep Singh. As no documentary evidence for licit import of the memory cards would be produced by them, the same were seized under Section 110 of the Customs Act 1962 on the reasonable belief that they were smuggled into the country and were liable for confiscation. Both Sh. Surinder Singh Arora and Shri.Kawaldeep Singh in their statements recorded under Section 108 of the Act, accepted that they were involved in illegal import of goods. A Show Cause Notice was issued to the respondent along with others as to why duty free allowance not be denied, the impugned goods should not be confiscated under Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n this regard, I find that the valuation on the basis of market enquiry has been correctly done as the quotations have been taken from the persons who are dealing in the memory cards. Market enquiry is an authentic source of valuation in cases where the passenger is not having any proof of purchase at the time of import. It may however be mentioned that during the course of personal hearing, the learned Counsel has agreed to accept the valuation done on the basis of market enquiry. Further, an abatment of 25% has already been given to the Notice on the market price. It has been noticed that Memory cards has very good margin of profit in grey market. lt is a fact that-memory cards attracts duty @ 15.033% under chapter head 85235220 at the time of import from normal channel of cargo as against duty @ 36.05% when imported as baggage. It is the intention of the government to charge lesser duty on such electronic goods when imported through normal channel. However, in the instant case, the pax has tried to smuggle huge quantity of Memory cards valued at Rs. 12,03,000 /- through passenger baggage without declaring the same before proper officer of Customs. It shows clear violation ..... X X X X Extracts X X X X X X X X Extracts X X X X
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