TMI Blog2003 (6) TMI 33X X X X Extracts X X X X X X X X Extracts X X X X ..... cers, it was found that a Bill of Entry No. F-4316, dated 30-7-1993 was filed under: 'Self' by the importer on the basis of Bill of Lading dated 25-7-1993 and invoice No. 0106, dated 20-3-1993. In the Bill of Entry, the goods imported were mentioned as Lead Scrap. On opening of the container, it was found to contain total 85 drums and the six drums in the front row taken out of the container, which were found to contain Lead Scrap only, whereas the remaining 79 drums contained few pieces of lead scrap over the packages of various types and sizes of Ball Bearing of foreign origin concealed thereunder. The lead scrap pieces were used merely as a cover/concealment of the total 4,42,389 pieces of Ball Bearing of different makes, sizes and numbers were recovered and seized by the officers, under the provisions of the Customs Act, 1962. The lead scrap weighing 1,460 Kgs valued at Rs. 10,000/- approx. recovered from the aforesaid drum bearing Sr. Nos: 1-79, used for concealment/cover was also placed under seizure along with the Ball Bearings for which the market value was estimated at Rs. 2,40,26,202/-. 3.The preliminary investigations conducted by the officers revealed that earlier al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntioned on the concerned Bill of Entry. (vii) Shri Gopalkrishnan had also given him IEC Code number written on a plain paper at the time of filing the Bill of Entry for M/s. Natraj Metals Pvt. Ltd., whereas while filing the Bill of Entry for M/s. Ram Metals Industries, he had received a photocopy of the IEC Code No. allocated to M/s. Ram Metals Industries. This was received by him along with other import documents from Shri Om Prakash Punjabi. 6.That, immediately alter the seizure of import consignment of M/s. Ram Metal Industries at Kandla Port on 8/9-8-1993, inquiries were got conducted at Baroda to trace M/s. Ram Metal Industries, Kalali Road, at Ladra, Vadodara and M/s. Natraj Metals Pvt. Ltd. but the Assistant Collector, Central Excise, Vadodara vide his letter dated 10-8-93 informed that there was no such Firms in existence at the above said addresses. 7.That, inquires were also conducted in the office of the Director General of Foreign Trade, Ahmedabad, which revealed that the IEC Code number used for M/s. Ram Metals Industries and M/s. Natraj Metals Pvt. Ltd. are fictitious. The IEC Code stated in respect of M/s. Ram Metal Industries really belonged to M/s. Trans ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Investigating Officers on one pretext or the other. Ultimately, Shri Gopalkrishnan presented himself on 28-12-1993 at Bombay, with a request that he may be examined at Bombay since he was being threatened continuously by the interested parties and it was not safe for him to appear at Ahmedabad or Gandhidham. 10.That Shri K.V. Gopalkrishnan, in his statement recorded under Section 108 of the Customs Act, 1962 on 28-12-1993 at Bombay stated that on 4-9-1993 and 15-9-1993 he had given his depositions before the Investigating authorities, which were not based on the facts and that now he wanted to give the factual position of the enquiry, that he has been working as an Executive Director with M/s. Shri Radhakrishnan Shipping Pvt. Ltd., Gandhidham since 1982 and that he knows Shri Hasmukh Shah of M/s. Ranchhoddas Purushottam Co. and M/s. Crown Timer, Gandhidham since 1988 and they are close friends, that he also knows Shri Solly Perumal of M/s. Trinity since 1982 as a CHA, that he has been giving him (Solly) the Customs clearance job, which are not undertaken by his Firm (Shri Radhakrishnan); that their acquaintance grew into friendship after some time, that in the month of Fe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... asmukh Shah also to his office; that a short-while later Shri Solly along with Shri Valson, Custom (Docks) wanted to verify the goods at the godown and in case the goods are despatched to Ahmedabad, he (Solly) would not be in a position to satisfy Shri Doshi requirements, that Shri Solly took the delivery-address of Ahmedabad party from Shri Hasmukh Shah, that while noting down, the address as "Om Tower". Shri Solly Perumal had asked Shri Hasmukh whether these goods belonged to Shri Om Prakash Punjabi to which Shri Hasmukh confirmed; that next day morning i.e. 8-6-1993, Shri Solly rang up and told him that Shri Solly along with Shri Doshi is going to Ahmedabad in the afternoon and requested him to pass on instructions to Shri Hasmukh to see that the container is not de-stuffed since the goods are to be examined/verified by Shri Doshi at Ahmedabad, that after two days Shri Solly informed him on phone that he (Solly) and Shri Doshi had been to Ahmedabad and they had seen the stuff, which is Ball Bearings only, that Shri Solly had asked him (Gopalkrishnan) about the value of the goods i.e. Ball Bearings which had been cleared illicitly in guise of lead scrap for which he had told him ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mployee of Shri Killubhai's Transport Co.) of M/s. Sadhana Transport Co., who had contacted Shri Solly at Kandla Port for delivery, that afterwards, Shri Hasmukh Shah informed him that he (Hasmukh) has asked the party i.e. M/s. Natraj Pvt. Ltd. to send a Demand Draft in favour of M/s. Trinity for a sum of Rs. 1,55,000/-. 11.He further stated that few days after the clearance of the consignment cleared in the name of M/s. Natraj Metals Pvt. Ltd. vide Bill of Entry No. F-4120, dated 21-7-1993, Shri Solly reminded him for the payment due from Shri Hasmukh Shah and also told him that he (Solly) required the whole amount i.e. Rs. 10,00,000/- i.e. 25% of Rs. 40,00,000/- at Gandhidham accordingly he conveyed the message to Shri Hasmukh Shah who in turn replied him that at present he (Hasmukh) is not having any funds and if the money is required urgently, Shri Solly has to collect the same from Jamnagar that, thereafter, Shri Hasmukh gave him (Solly) a chit of paper bearing telephone number and name of the Jamnagar party, which was written in Gujarati; that he does not remember from whom the sum of Rs. Three lakhs was collected; that he handed over the same paper chit to Shri Solly at hi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tended to previous two consignments cleared in the name of M/s. R.K. International and M/s. Natraj Metal Pvt. Ltd., he had no hesitation, in attending to this job also, that hence he showed his willingness to take up the job; that after a day or two of this talk Shri Valson had asked him to accompany him (Valson) to Ahmedabad; that they met and discussed the matter regarding import of another consignment; that at this moment Shri Valson told Shri Om Prakash that he has already talked to the Departmental Officers and there will not be any problem for its clearance at Kandla; that Shri Om Prakash got them (Solly and Valson) introduced to a person named Shri Sureshbhai and told that he (Sureshbhai) would be looking after the affairs for this consignment; that after discussing the matter with Shri Om Prakash Punjabi, he along with Shri Valson left Shri Om Prakash's office on the same evening and came back to Gandhidham in Shri Valson's white colour Fiat Car early in the morning of the next day; that after a day or two Shri Valson visited his office and told him that Shri Om Prakash will be sending the import documents of lead scrap which will be containing Ball Bearings also; that next ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ings) that this was about 4 to 5 inches and below that were packets packed in white transparent polythene; that Ball Bearings packed inside the packets were visible and, therefore, these packets were not opened that he does not remember how many packets were there in each drum; that there was some lead scrap; on the sides of the drums also; that there was some lead scrap on the sides of the drums scrap; without any packets of Ball Bearings. He further stated that he knows Shri Shrikant of M/s. Fibro Metals Pvt. Ltd., Ahmedabad, who had advanced some loan to Shri P.C. Chacko; and he had asked Shri Shrikant to book the room in Hotel Nalanda but he clearly remembers that he had not paid the Bill for their stay in this hotel on 6-6-1993 and he cannot say who had booked the call after 11.00 hrs. on Baroda telephone number 325033, but he remembers that they had left the Hotel before 11.00 hrs. and had their lunch at Baroda. He further admitted that he had received a Bank Draft along with the import documents of M/s. R.K. International and the said Draft was submitted to the Customs for payment of duty in respect of import consignment of M/s. R.K. International; that he is not able to rem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fts as well as amount in respect of Customs duty; that the amount of Rs. 1,55,000/- was given to him in cash by Shri K.V. Gopalkrishnan of M/s. Radha Krishnan Shipping Co. Pvt. Ltd. towards payment of duty and since he had a balance of Rs. l,50,234.56 in his account hence he deposited an amount of Rs. 5,000/- in cash on 21-7-1993 and issued a Cheque No. 195248 for Rs. 1,54,272/- in favour of 'Y/Self' for making Demand Draft in favour of "Assistant Collector of Customs, Kandla". He further admitted that he had paid an amount of Rs. 1,42,367/- vide Cheque No. 196249, dated 29-7-1993 in favour of 'Y/Self' to the Bank for issuing Demand Draft in favour of "Assistant Collector of Customs, Kandla" towards Customs Duty in respect of M/s. Ram Metal Industries, Baroda. He further clarified that an amount of Rs. l,50,000/- was given to him in cash by Shri Solly Perumal for Customs duty towards M/s. Ram Metal Industries, Vadodara. 19.That, statement of Shri D.K. Shukla, Branch Manager of the State Bank of Indore, Gandhidham was recorded on 13-1-1994 under Section 108 of the Customs Act, 1962 under which he had produced two cheques in original bearing numbers 196248, dated 21-7-1993 for Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he same. 24.Whereas, statement of Shri Manilal Jayantilal Akahni, Ex-Manager of Ahmedabad Urban Co.op. Bank Ltd., Sarangpur Branch, Ahmedabad, was recorded under Section 108 of the Customs Act, 1962 on 7-1-1994 wherein he, inter alia, stated that he knows Shri Om Prakash Punjabi as Chairman of the Ahmedabad Urban Co.op. Bank Ltd., Ahmedabad that during his working at aforesaid Bank he used to talk to him (Om Prakash) over the telephone regarding banking work and he (Om Prakash) has his current account as well as loan accounts in the Sarangpur Branch; that on 21-7-1993 at about 11.30 hrs the Chairman Shri Om Prakash Punjabi had phoned him and told him that his office man is coming with cash and instructed him to arrange for the issuance of Demand Draft for Rs. 1,55,000/- in the name of M/s. Trinity Shipping, Gandhidham; that he told Om Prakash that as per instructions of Reserve Bank of India draft of such a big amount cannot be issued against cash; but he (Om Prakash) told him specifically the Demand Draft is to be issued against cash and demanded the same; that, thereafter, the man from his office came with cash of Rs. 1,55,400/- on 21-7-1993. On being further asked whether he k ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... counter of the bank; that he as seen and verified page No. 89 of the supplementary register pertaining to the period from 3-12-1992 to 6-9-1993 and he had put his signature thereon; looking to that page, an entry on 21-7-1993 has been written which was a cash entry of Rs. 1,55,387/- and somebody has deliberately removed/erased the said entry; that he does not know as to who, when and why it has been done. On being specifically asked he stated that there are very rare entries for issuance of Demand Drafts against cash and it is being done so only when they receive instruction from the Head Office. 27.Whereas, statement of Shri Bharat Sumanlal Jani, in connection with the above, was recorded on 10-1-1994 wherein he stated that he is serving as an officer with the Ahmedabad Urban Co.op. Bank, Sarangpur Branch, Ahmedabad since more than 1/1-2 years ago that in the morning of 21-7-1993, as per the instructions of Shri Manilal Jayatilal Akani, then Manager of the said branch draft slip had come to him from the Cashier after the receipt of cash for issuance of demand draft for Rs. 1,55,387/- in favour of M/s. Trinity Shipping Allied Services Pvt. Ltd., Gandhidham; that as the amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lead scrap were imported in the name of M/s. Jyoti Exports; that the last container of lead scrap was cleared at Kandla Port vide Bill of Entry No. E-3058, dated 4-6-1993 in the name of M/s. R.K. International, Ahmedabad and that he had sold the lead scrap covered Under Bill of Entry No. E-3058, dated 4-6-1993 to one Shri Noor Mohmmad of Ahmedabad. 31.In his further statement recorded under Section 108 of the Customs Act, 1962 on 3-9-1993, 22-9-1993, 27-9-1993 and 1-10-1993 Shri Om Prakash Punjabi had repeatedly stated that the details regarding the sale of lead scrap by M/s. R.K. International could be ascertained from Shri Suresh Dhokai and that Suresh Dhokai is not contacted. 32.Whereas a show cause notice in respect of the aforesaid cases has been issued proposing liabilities to confiscation of the Ball Bearings and lead scrap in this case on 27-10-1993 by the Assistant Collector of Customs (SIB), Kandla and subsequently, an Adjudication order has been passed by the Collector of Customs, Kandla on 5-1-1994 ordering absolute confiscation of the goods. 33.The contention of the Revenue is that there are similarities in many ways in the consignment of M/s. R.K. International ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Nathubhai and it was learnt by him that he (Sr. Noormohammad) had gone to Dubai and as such he could not produce the same under his statement dated 1-10-1993 but, thereafter, he had contacted Shri Noorbhai over the telephone at Dubai and he had informed him (Noorbhai) and demanded his payment; that in reply thereof Shri Noorbhai had sent him a Fax message on 5-10-1993 and he submitted a copy of the said fax message. He further stated that the goods which he had sold to Shri Noormohammad was the consignment of lead scrap imported vide Bill of Entry No. 3058 in the name of M/s. R.K. International on 4-6-1993, that in the reply thereof Shri Noormohammad had sent a Fax message that he had already sold about ten tons of goods out of that consignment and that remaining goods are lying in the godown of one of Shri Mahammad Adambhai; that he does not know the person whose name was being mentioned in the Fax message and he does not know his address even. Further, on being asked he stated that he does not know Shri Noorbhai's Dubai telephone and Fax number; that he does not remember about the date when he had talked to Shri Noorbhai over the telephone and that the phone call was made by Shri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ignment. 41.It also appears that Shri Kavil Gopalakrishnan was instrument in the clearance of consignment imported in the name of M/s. R.K. International and M/s. Natraj Metals (P) Ltd., Vadodara and he handed over the relevant import documents along with Customs duty Demand Draft to Shri Solly Perumal. Further, Shri Solly Perumal; K.V. Gopalkrishnan; Hasmukh R. Shah; Vinod Kumar Vasant and Killubhai and K. Valson Chandershakhar were present when the matter regarding the amount of consideration to be paid to the Customs Officers for clearance of contraband goods in guise of lead strap was discussed. 42.Further it appears that Shri Mahendra Doshi, then Assistant Collector at Kandla Port knowingly connived at the smuggling of Ball Bearing imported in the guise of lead scrap by M/s. Natraj Metals and M/s. R.K. International, Ahmedabad. From the evidence on record, it appears that Shri Mahendra Doshi has gone up to the extent of going from Gandhidham to Ahmedabad with the CHA. Shri Solly Perumal in his car dated 5-6-1993 to verify the goods illicitly imported by M/s. R.K. International, Ahmedabad which were stored in the godown at 14, Ishwar Krupa Society, Aslali, Ahmedabad. Shri D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al and M/s. Natraj Metals, Vadodara. 48.Therefore, their acts of omission/commission by way of making conspiracy to import illegally (smuggled in) are in contravention of Section 111 of the Customs Act, 1962 read with Section 3 of the Import and Export Control Act, 1972 read with Clause 3 of the Import Trade Control Order, 1955. Therefore, the Ball Bearings attempted to be imported under Bill of Entry No. 004315, dated 30-7-1993. In respect of M/s. Ram Metal Industries, under the guise of lead scrap were confiscated absolutely by the Collector of Customs, Kandla vide his order-in-original issued from F.No. S/10-4/94 on 11-1-1994. Also the Ball Bearings imported illegally under the Bill of Entry No. 004120, dated 21-7-1993 and 003058, dated 4-6-1993 of M/s. Natraj Metals and M/s. R.K. International respectively are also liable for confiscation (in absentia) under Section 111(d), 111(f), 111(i) and 111(m) of the Customs Act, 1962 and the persons mentioned at Serial Nos. (i) to (xviii) are liable for penalty under Section 112 of the Customs Act, 1962. 49.Therefore, (i) M/s. R.K. International, Ahmedabad; (ii) M/s. Ram Metal Industries, Vadodara; (iii) M/s. Natraj Metals (P) Ltd., ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alkrishnan and he agreed to the same; that thereafter, Kavil Gopalkrishnan sent him the documents and as agreed, the goods were cleared without Customs checking; that Kavil Gopalkrishnan had given him the documents in the name of M/s. R.K. International and the goods cleared in the same name; that after clearance of the goods; Shri Mahendra Doshi informed him that he wanted to see the goods; that he communicated the same to Kavil Gopalkrishnan; that Kavil Gopalkrishnan told that the goods would be shown in Gandhidham but later on, he informed that the goods could not be examined in Gandhidham as the consignment was being sent to Ahmedabad and in case the goods were to be seen, the officers would have to be taken to Ahmedabad; that Doshi Sahib agreed to examine the goods in Ahmedabad; that Kavil Gopalkrishnan gave him a slip (chit) on which a telephone number was mentioned and he was told that after reaching Ahmedabad, he should contact on that phone number; that afterwards, he and Doshi Sahib went to Ahmedabad and phoned the number given by Kavil Gopalkrishnan; that the person who received the phone call informed them that they should wait there only and he was sending a vehicle; t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that Hasmukhbhai phoned him and Called him to his residence that when he went to his residence, then Killubhbai and Kavil Gopalkrishnan were also there, that he told them to make payment early, as the officers were insisting the same; that Hasmukhbhai told that it would be done within a day or two and also told that other Clearing Agents charge 25% for such jobs and he should also arrange accordingly; that he promised to discuss the same with the officer; that thereafter, he talked over the matter with Doshi Sahib and he agreed that the amount for the next consignment would be at the rate of 25% and the same would have to be paid in Gandhidham only; that he communicated the same to Hasmukhbhai and that he agreed to it. Shri Solly Perumal further stated that in the second or third week of July, 1993, Kavil Gopalkrishnan gave him the documents of Natraj Metals and asked him to check-up from Nagarkar Sahib that he had received Rs. 8 lakhs from Mumbai or otherwise; that he went to his office and enquired about it; that Nagarkar Sahib told him that he had received Rs. 8 lakhs; that the balance amount of Rs. 4 lakhs was given to him by Kavil Gopalkrishnan and same was given to Doshi Sah ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee, who brought the document and Rs. 1.5 lakh in cash sent by Om Prakash Punjabi; that after half an hour, he received a phone call from Om Prakash Punjabi telling him as to why the cash had been sent and why duty draft could not be obtained and sent; that he (Om Prakash Punjabi) also told him that it was a small matter and he should get the draft prepared; that he got the draft made and submitted the documents in the name of Ram Metals for clearance; that after five days the consignment was seized. Shri Solly Perumal in his statement dated 16-12-1995 further deposed that if any thing is left out in the said statement, the same had already been admitted in his statements recorded under Section 108 of the Customs Act on 29-12-1993 and 30-12-1993. 52.Shri Kavil Gopalkrishnan in his statement dated 16-12-1995 rendered under Section 164 of Criminal Procedure Code before Metropolitan Magistrate, Ahmedabad, inter alia, disclosed the same fact. 53.In another case booked by the Directorate of Revenue Intelligence (DR1), a statement of Shri Nitin Nagarkar residing at 601, Primerose Society, Juhu Road, Santacruz (West), Mumbai was recorded under Section 108 of the Customs Act, 1962 on 5- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 25 lakhs under Section 112A of the Customs Act on Shri Solly Perumal and dropped they proceedings against the other noticees. The present appeals have been filed against that order of adjudication. 58.Heard both sides. 59.The disputes arising in these appeals are to be examined in the backdrop of facts relating to three imports at Kandla between 4-6-1993 to 30-7-1993. One of the main issues to be considered is whether Om Prakash Punjabi is the real importer in all the three imports. Further question to be considered is whether the goods imported under Bill of Entry dated 4-6-1993 in the name of R.K. International and Bill of Entry dated 21-7-1993 in the name of Natraj Metal Pvt. Ltd. contained ball bearings in the guise of lead scrap as was found in the case of import made in the name of M/s. Ram Metal Industries under Bill of Entry dated 30-7-1993 and whether import of ball bearing was made in the guise of lead scrap or attempted to be made in the guise of lead scrap with the knowledge and connivance of the noticee officers. 60.It is the case of the Revenue that Om Prakash Punjabi who is admittedly the importer under Bill of Entry dated 4-6-1993 in the name of R.K Inte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bill of Lading and IEC Code through his carrier which was received by Shri Kanthibhai who was waiting at Gandhidham Railway Station. In his statement dated 1-1-1994 Kanthibhai has corroborated the above statement of Perumal. Thereafter the money was handed over to P.C. Chacko, an employee of Solly Perumal who got the draft for payment of Customs duty. 63.When investigation was taken up by DRI in the matter of import in the name of Ram Metal Industries, Om Prakash Punjabi was in Bombay. Solly Perumal in his statement refers to the attempt made by Om Prakash Punjabi to get in touch with him during that time. This statement is corroborated by the statement of Suresh Kumar Dhoka on 18-11-1993 which would show that Om Prakash Punjabi was making desperate attempt to get in touch with Solly Perumal on coming to know about the investigation by DRI. Om Prakash Punjabi has admitted that Suresh Kumar Dhoka is close associate in business. 64.According to Solly Perumal on 2-9-1993 Shri Om Prakash Punjabi visited him at Hotel Nataraj, Ahmedabad and talked with him for about 15 to 20 minutes. Om Prakash Punjabi specifically asked as to how the Customs people got the information in respect of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erve Bank not to issue drafts for large amounts against cash. There is also evidence of Kamlesh P. Thakkar, Apprentice Clerk in the Ahmedabad Urban Cooperative Bank and Shri Bharat Sumanlal Jani an officer of the Ahmedabad Urban Cooperative Bank, Sarangpur Branch which would all go to prove the active part played by Om Prakash Punjabi in getting the draft in the name of Triniti Shipping for the purpose of clearing the consignment in the name of M/s. Natraj Metal Pvt. Ltd. These officers' evidence would further show that subsequently there had been attempt to tamper with the records kept in the bank. The statement of Manilal Jayantilal would also show that in view of the instructions issued by Reserve Bank of India not to issue a draft for a large amount against cash draft was got prepared from State Bank of Bikaner and Jaipur on the basis of cheque issued by Ahmedabad Cooperative Bank. 67.The overwhelming evidence as above connecting Om Prakash Punjabi in arranging the draft for clearing the consignment of M/s. Natraj Metal Pvt. Ltd. cannot be ignored. Apart from the above, no reason was placed before us by the learned Counsel appearing on behalf of Om Prakash Punjabi to show tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y Perumal and others to trace the movement of the goods under the above two imports. But when it comes to the actual identification of ball bearings in these consignments there is lack of conclusive proof. Investigation has failed to prove the last link. There is no explanation forthcoming for the failure to verify the claim of Ghoghari that part of the consignment purchased by him was still kept in the godown. 70.Since we hold that the Revenue has failed to prove conclusively presence of ball bearings in the earlier two consignments, no liability could be fixed on other noticees including the officers who allegedly were party to smuggling of ball bearings in the guise of lead scrap. Still it will not be out of place to observe that the conduct of some of the officers who were noticees is not befitting their office for example Shri Mahendra Doshi who was the Assistant Commissioner, Kandla during the relevant period. In his statement dated 8-3-1994 he had given the details as to how examination of the consignment imported by R.K. International and Natraj Metals Pvt. Ltd. was made. He was party to the procedure in both cases. He states that the consignment imported in the name of N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on order dated 5-1-1994 has also failed to co-ordinate the investigations of his officers with the investigations of DRI and to give a correct direction to the whole proceeding. On seizure of the consignment in the name of Ram Metal Industries, if immediate steps had been taken to follow up the movement of the goods cleared immediately before it in the name of Natraj Metals Pvt. Ltd., the result could have been different. 72.We have already entered a finding that Shri Om Prakash Punjabi is the real importer of the goods imported in the name of M/s. Ram Metal Industries. That was a clear case of smuggling of ball bearing in the guise of cheap lead scrap. As against the declared value of less than Rs. 2 lakhs the assessed value is Rs. 2.4 crores. He is, therefore, clearly liable to penal action under Section 112 of the Customs Act. Taking into account the deliberate fraud involved and the value of the smuggled goods, we impose a penalty of Rs. 50 lakhs on Shri Om Prakash Punjabi. Appeal No. C/474/2000 filed by the Revenue is allowed as above. All other appeals filed by the Revenue are dismissed. 73.Now we come to the appeal filed by Shri Solly Perumal. Appellant does not dispute ..... X X X X Extracts X X X X X X X X Extracts X X X X
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