TMI Blog1996 (6) TMI 355X X X X Extracts X X X X X X X X Extracts X X X X ..... llant guilty of misdeclaration of description and value of the machine in order to obtain the benefit of OGL and to evade payment of duty and imposing penalty of ₹ 50,000/- on the appellant and ₹ 25,000/- on one of the Directors of the appellants' sister concern under Section 112 of the Act. The Collector did not impose penalty on the other officers of the appellant. 2. The imported machine was second hand machine. Appellant declared the machine as fully programmed paper cutting machine with three knife trimmers and accessories and spares and declared value as ₹ 15,94,044/-. The machine was assessed on the invoice value and duty was paid and the machine cleared. The Central Economic Intelligence Bureau received in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant denied the material averments in the show cause notice with reference to the description of the machine, the permissibility of import under OGL and the valuation. The Collector, however, rejected these contentions and passed the impugned order holding that the machine was a slitter cum rewinding machine and not paper cutting machine falling under the aforesaid item and could not have been imported under OGL but required specific licence. The Collector determined the CIF value at the time of import at ₹ 2,59,181 and the differential value originally assessed and presently assessed differential duty. 4. Learned counsel for the appellant contended that even assuming that the machine imported could be regarded as slitter cum rewind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g industry but running a plastic industry where also a cutting machine would be necessary. The Bench relied on the Explanatory Note to Heading 84.33 to the effect that Heading includes slitter-reelers for unwinding reels of paper and cutting the paper into bands of required width and rewinding it. The Bench also relied on Explanatory Note to Heading 84.41 of the HSN to the effect that it included winders (slitter-winders) for unwinding reels of paper, slitting the paper into bands(slits) of the required width and rewinding it and held that a slitter cum rewinding machine is internationally recognised as a paper cutting machine. 7. The heading of Item 11 of Appendix 1 Part B is Printing Machinery Sub-Item (9) refers to Fully Programm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a paper cutting machine. Assuming that paper cutting machine in the instant case is a machine of general use in printing industry, even so, in the absence of any specific restriction to that effect it cannot be said that an industry other than paper industry cannot import this machine under OGL. 8. We, therefore, disagree with the conclusion of the Collector and hold that the import of the machine under OGL was permissible. 9. The declared invoice price was ₹ 15,94,044. The value determined under the impugned order is ₹ 22,59,181. If this be the correct value, it would follow in the circumstances of the case, that there was deliberate undervaluation. The Chartered Engineer's certificate which was received by the appel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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