Archana Wadhwa, Member (J). - (1.)ALL the three appeals are being disposed of by a common order as they arise out of the same impugned order of Commissioner of Customs (Airport), Kolkata, vide which the goods imported by M/s. Glory Research Association have been confiscated with an option to them to redeem the same on payment of redemption fine of Rs. 4.00 lakh (Rupees four lakh). Duty of Rs. 5,48,056.00 (Rupees five lakh forty-eight thousand fifty-six) has been confirmed against them, along with imposition of personal penalty of identical amount. In addition, penalty of Rs. 50,000.00 (Rupees fifty thousand) each has been imposed on the other two appellants - Ms. Sipra Ghosh and Shri Sanjoy Ghosh.
(2.)As per facts on record, M/s. Glory Research Association (hereinafter referred to as GRA) imported Beta-Cam-Edit Set Up, by claiming exemption under the provisions of Notification No. 152/94-Cus., dated 13-7-94. The goods were cleared after filing two bills of entry dated 19-11-2000 and 12-1-2001. As a result of intelligence received by Customs Officers from M/s. United Bank of India regarding the fraudulent activities of the appellants, the Revenue Officers conducted further investigations. As a result of investigations conducted it was found that Ms. Sipra Ghosh and Shri Sanjoy Ghosh were having a running concern under the name and style of M/s. Glory Enterprise - which was engaged in the activities of advertisement in various media as well as making of Serials. The said M/s. Glory Enterprises borrowed a loan of Rs. 5,37,800.00 (Rupees five lakh thirty-seven thousand eight hundred) from M/s. United Bank of India of Barasat Branch for the purposes of setting up a commercial project of Beta-Cam-Edit Unit. After adding margin money given by Ms. Sipra Ghosh, the Pay Order for Rs. 7,17,067.00 (Rupees seven lakh seventeen thousand sixty-seven) was forwarded in favour of M/s. New Video Ltd. for the purposes of importation of the said goods. M/s. Glory Enterprise after removing the Forwarding Memo of the Pay Order, gave the Pay Order to the Indenting Agent, M/s. New Video Ltd. who are the authorised Sales Representative of M/s. Sony Corporation of Hong Kong. Thereafter, M/s. Sony Corporation were placed with a confirmed Order by Ms. Sipra Ghosh for the supply of the goods in question with direction that the same be supplied to M/s. GRA. They also instructed M/s. New Video Ltd. to transfer the amount given by the Bank to the credit of G.R.A. During the course of investigations, the Revenue Authorities also found out that GRA was not working for the promotion of deaf, dumb and blind, as it was made out to be and the address given by the said firm was found to be a vacant plot. The Officers also found that the goods have been under-valued and the entire scene was created by the two appellants, Shri Sanjoy Ghosh and Ms. Sipra Ghosh - who are brother and sister in relation for the purpose of importation of the goods in question and to avail the benefit of the Notification No. 152/94-Cus.
Before proceeding ahead, we would like to refer here to the conditions of the Notification No. 152/94-Cus. which permits importation of certain goods free of duty, subject to fulfilment of the conditions which are reproduced below :-

(i) The goods are imported by an institution (including a registered co-operative Society) for the blind and the deaf;

(ii) The goods are bona fide gifts to or purchased out of donations received abroad in foreign exchange by such institute;

(iii) Where any such institution is scheduled to begin to function only after the importation of the said goods, the exemption shall not apply in respect of the goods imported by that institution, unless an undertaking in writing is given by the President or the Secretary of that institution that it will begin to function within a period of six months or such extended period as Asstt. Commissioner of Customs or Deputy Commissioner of Customs may on sufficient cause being shown, allow in this behalf, from the date of importation of the goods;

(iv) Where the said goods have been purchased out of donations received abroad in foreign exchange the institution have been permitted to maintain an account abroad by the R.B.I., for the purpose of receiving funds donated overseas.

(3.)THE allegations for the violation of the conditions of the said notification, are made against M/s. GRA on the ground that GRA is not a charitable organisation working for the blind and the deaf; that the goods imported by GRA do not qualify as a bona fide gift; that the goods have not been purchased out of donations received abroad in foreign exchange; that there was mis-declaration with regard to the valuation of the imported goods and the importers have attempted to get the benefit of Notification No. 152/94.