- (1.) Three consignments of imported goods landed at Mumbai Port. Bills of Entries for clearance of these consignments were filed by one M/s. Saidutt Clearing Agency Pvt. Ltd. (for short, 'CHA') on 30.07.2002. These Bills of Entries were filed on behalf of two importers, namely, M/s. Saumya Marketing (for short, 'SM') and M/s. Mega Enterprises (for short, 'ME'). It was declared that the consignments contained various electronic components/parts. These were supplied by the same supplier, M/s. Lim Manufacturing (Pte.) Ltd., Singapore. They had also arrived on the same vessel, viz., OLIVIA VW 005. However, after inspection of these consignments by the customs authorities, it was observed that not only the supplier was same and the consignments came through the same vessel, they were also shipped on board on the same day, i.e., 20.07.2002. Even the Bills of Lading for the three consignments were also issued on the same day, i.e. 20.07.2002. The invoice raised by the suppliers in respect of all the three consignments were again issued on the same day, i.e. 22.07.2002. It so happened that an intelligence was received by DRI, Mumbai Zonal Unit, that certain electronic goods, namely, CD/VCD Hi-Fi Systems and Car Cassettes Players, were being imported in the guise of electronic components, namely,. Tape Deck Mechanisms, Plastic moulded components and metal parts, Remote Control Units, populated PCBs etc. by certain traders. The intelligence also indicated that the importers were misdeclaring the description of the goods and also highly under-invoicing the same. Accordingly, the above three consignments imported by M/s. SM and M/s. ME, consisting of parts of electronic components for Car Cassette Player and Audio with Radio of Kenwood, Sony, Pioneer, Philips and Thomson brands, were taken up for investigation. Prima facie, it appeared that complete sets of Audio Systems had been imported in the disassembled condition under the three Bills of Entries.
(2.) To verify this aspect, technicians were called from the office of Thomson India and Philips India and panchnama was drawn on 14.08.2002 at the DRI Office. The said technicians were able to assemble the systems from the parts imported vide these Bills of Entries and make it function in the presence of panchas as well as Shri A.K. Dham, the Director of CHA. It was found by the Department that in all the above-mentioned cases, all the parts, down to the last screw, were imported to make complete sets. No additional part was added by the technicians to make the system functional.
(3.) During the course of investigations, statements of Shri Vinodbhai Patel, Proprietor of M/s. ME, and Shri Sohanbhai Soni, Proprietor of M/s. SM were also recorded on 17.10.2002. On the same day, i.e., 17.10.2002, statement of Respondent No. 1, Shri Pundrick Ravindra Trivedi, was also recorded wherein he had admitted that he was the actual owner of the said firms and that he had paid Shri Patel and Shri Soni a sum of Rs. 4,000 to Rs. 5,000 per month for operating the said firms in their names. He stated that Shri Patel and Shri Soni had no role in the import activities of the firms and that they had only signed cheques and documents as and when required by him. He also admitted that the complete function units of car cassette players and five-in-one music of Pioneer, Sony, Philips, Kenwood and Thomson can be made by assembling the respective parts. He also admitted that these goods were offered to him in Semi-Knocked Down (SKD) condition and he imported the same vide different Bill of Entries for tax management purpose.;