Uday Umesh Lalit, J. - (1.) This Appeal under Section 130E of the Customs Act, 1962 (hereinafter referred to as 'the Act') arises out of Order No.C/A/57743/2017 dated 09.11.2017 passed by the Customs Excise and Service Tax Appellate Tribunal (for short, 'the Tribunal') dismissing Appeal No.C/51770 of 2016 preferred by the appellant herein.
(2.) The basic facts leading to the issuance of Show Cause Notice dated 27.06.2014 initiating proceedings against the appellant, as set out in the Order under appeal are as under:- "The appellant imported certain goods at air cargo complex, New Delhi and filed Bill of Entry 2660085 dated 26.6.2003. They declared the goods as Multiplexor Satellite Receivers, test and measurement equipment etc. and attached six invoices covering 19 items imported. They indicated individual classification for the various items under Chapter 84/85 of the Customs Tariff. The Bill of Entry was assessed as per declaration and applicable customs duty was paid. Subsequently, information was received from SIIB Air Cargo Complex Mumbai, that investigations had been commenced against the appellant for import of similar goods at Mumbai. Accordingly, Provisional Assessment was been ordered under Section 18 of the Customs Act. 2. The investigation undertaken at Mumbai revealed as follows:- The importer had placed the order at UK for purchase of equipments - one set for Mumbai and another set for Delhi. Each set of equipment, taken together constituted 'Head End' for cable TV operations. The 'Head End' was an equipment at a local TV office that originates the cable TV services and cable TV modem services to subscriber though Conditional Access System (CAS). All imported equipments taken together contributes towards a clearly refined function i.e. 'Head End' for cable TV operations. The complete set of equipment together merits classification under Customs Tariff Heading (CTH) 8543 8999, in the light of Note 4 to Section XVI. Thus, it appeared that individual classification indicated for 19 imported items amounts to mis-declaration. The search operation carried by SIIB, ACC, Mumbai at the premises of importer further revealed that the importer had also mis- declared the value of the imported consignments at Delhi and Mumbai. They had suppressed the value of embedded software as well as value of services payable to the foreign supplier for carrying out integration of the system prior to shipment and provide complete commission and installation services at the customers premises. Further, it was noticed that the purchase order placed by the importer was revised to show as CIF instead of FOB."
(3.) In the aforesaid circumstances, Show Cause Notice dated 27.06.2014 was issued by the Department stating inter alia :- "18. In view of the above, it appears that the Importer had fabricated documents by way of splitting of value of the goods and declared lesser value to the Customs Department with the sole intention to evade payment of Customs Duties. Therefore, it appeared that the Importer had intentionally not declared the true and correct value of the goods imported to the customs for the purpose of payment of Customs Duty. Further the cost of services was to be paid separately by the Importer to their supplier. Hence, the Importer failed to make true declarations. Therefore, the goods imported vide Bill of Entry No.260085 dated 26.06.2003 filed at Air Cargo Complex, New Delhi also appear to be liable for confiscation under Section 111(m) of the Customs Act, 1962 due to their aforesaid act of omission and commission. It also appears that they have rendered themselves liable for penal action under Section 112(a) and/or Section 114AA of the Customs Act, 1962." The appellant was thus asked to show cause why: (a) the declared values should not be rejected under Rule 10A of the erstwhile Customs Valuation (Determination of Price of Imported Goods) Rules, 1988 and the same should not be redetermined under Rule 9(1) (e) (adding cost of services) of the erstwhile Custom Valuation (Determination of Price of Imported Goods) Rules, 1988; (b) the invoice value of imported goods declared in the (Bill of Entry as Rs.1,02,91,463/- should not be enhanced to Rs.1,72,03,243/- (Rupees One Crore Seventy Two Lakhs Three Thousand Two Hundred and Forty Three Only) for the purpose of assessment under Section 14 of the Customs Act, 1962 read with Rule 9(1)(e) of the erstwhile Customs Valuation (Determination of Price of Imported Goods) Rules, 1988 and the provisional assessment made under Section 18 of Customs Act, 1962 should not be finalised accordingly.;