Page 235 - ELT_1st August 2020_Vol 373_Part 3

2020 ] P.G. ELECTROPLAST LTD. v. PRINCIPAL COMMISSIONER OF CUSTOMS, NOIDA 417

was recorded on 8 March, 2011, 9 March, 2011, 7 April, 2011, 19 September, 2011
& 5 October, 2012 were recorded. Shri Vishal Gupta deposed that they imported
14 inches colour picture tubes from M/s. Chunghwa Picture Tubes, Malaysia at
US $ 20.20 on CNF basis per peace and the period of payment ranged between
three to five months. He has also stated that overvaluation in the invoices was
done by M/s. Chunghwa Picture Tubes, Malaysia on their instructions to avoid
payment of Anti-dumping. On the basis of information in respect of total quanti-
ty of 14 inches colour picture tubes imported by appellant a show cause notice
dated 29 May, 2015 was issued by invoking extended period of limitation by rais-
ing a demand by invoking extended period of limitation under Section 28 of the
Customs Act, 1962 for recovery of Anti-dumping duty amounting to Rs. 7.38
crore in terms of said Notification No. 50/2009-Cus. It was alleged that there was
suppression of facts by the appellant. Further it was stated in the said show cause
notice that one M/s. J.R. International were importing fabric and undervalued
the same for evasion of customs duty and the difference between the actual price
and price indicated in invoice was received by overseas M/s. Tessuti (HK) Co.
Ltd., Hong Kong through hawala channel and such payments were made to
M/s. Tessuti (HK) Co. Ltd. by M/s. Chunghwa, Malaysia, from whom M/s. J.R.
International imported colour picture tubes by overvaluing to avoid imposition
of anti-dumping duty. It was stated by proprietor of M/s. Tessuti (HK) Co. Ltd.,
Hong Kong that M/s. Tessuti (HK) Co. Ltd., Hong Kong had entered into an
agreement with M/s. Chunghwa, Malaysia wherein M/s. Chunghwa, Malaysia
was to pay commission at the rate of US $ 3.40/piece of colour picture tube to
M/s. Tessuti (HK) Co. Ltd., Honk Kong by raising a debit note in favour of M/s.
Chunghwa, Malaysia on the basis of said investigation. The basis of allegation in
the said show cause notice as recorded at Paras 8.7 & 8.8 are reproduced below :-
8.7. From the admissions made by Shri Vishal Gupta, Director of
M/s. P.G. Electroplast in his voluntary statements recorded under Section
108 of the Customs Act, 1962 that M/s. P.G. Electroplast overvalued the
price of CPTs to avoid payment of anti-dumping duty. The differential
amount was adjusted by various means including debit notes, opening of
LCs of longer period of upto 120 days, etc. From the statements recorded
during investigations, it is evident that the actual price of 14” CPT imported
from M/s. Chunghwa Picture Tubes, Malaysia can be taken as US $ 15.8.
The modus operandi of overvaluation in the import of 14” CPTs has also been
revealed by the statements of Shri Vishal Gupta and others. The statements
recorded under Section 108 of the Customs Act, 1962 are admissible in the
proceedings under the Customs Act, 1962. The fact of overvaluation have
been further and independently corroborated by the statements of Shri
Sandeep Devgun, commission agent/representative of M/s. Chunghwa
Picture Tubes, Malaysia wherein he (i.e. Shri Devgun) also disclosed the ac-
tual price of CPTs supplied by M/s. Chungwa Picture Tubes, Malaysia. The
disclosures made by Shri Umesh Gulhar, Proprietor of M/s. Tessuti (HK)
Co. Ltd., Hong Kong about the arrangement amongst M/s. Chunghwa Pic-
ture Tubes, Malaysia, M/s. Tessuti (HK) Co. Ltd., Hong Kong and M/s. J.R.
International, Delhi further enhances the veracity of the statements made
by the importer.
8.8 From the foregoing facts, it appears that the values of the 14”
CPTs imported and cleared by M/s. P.G. Electroplast declared in the 70
bills of entry (details in Annexures-‘A’) at the time of import into India,
were not the correct transaction values and the same cannot be accepted
and appear liable for rejection under Rule 12 of the Customs Valuation (De-
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