Per S.S. Kang : Brief facts of the case as narrated by the Revenue are that specific intelligence was received by DRI, Zonal Unit, Ahmedabad on 7.8.93 that a consignment of Lead Scrap has been imported in the name M/s. Ram Metal Industries, Boards, which is pending clearing for at Kandla port and actually contains Ball Bearings of foreign origin being illicitly imported and cleared in the guise of Lead Scrap and Shri Solly Perumal, Director of M/s. Trinity Shipping & Allied Services Pvt. Ltd., Ahmedabad in association with Shri Om Prakash Punjabi of Ahmedabad is said to be actively involved in the smuggling of Ball Bearings into India by way of mis-declaring import cargo.

2. On scrutiny and verification of the related import documents by the Customs Officers, it was found that a Bill of Entry No. F-4316 dated 30.7.93 was filed under : 'Self' by the importer on the basis of Bill of Lading dated 25.7.93 and invoice No. 0106 dated 20.3.93. 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 raw 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 there-under. The lead scrap pieces were used merely as a cover/concealment of the total 442389 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 1460 Kgs. valued at Rs. 10,000/- approx. recovered from the aforesaid drum bearing Sr. No. 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 also a similar consignment was cleared in the name of M/s. Natraj Metal Pvt. Ltd. Vadodara for which Bill of Entry No. F-2120 dated 21.7.93 was filed under 'Self' for the import of 19.680 M.T. lead scrap and similarly Bill of Entry No. F-3058 dated 4.6.93 was filed by M/s. Trinity on behalf of the importer for the import of 16.880 M.T. of lead scrap imported and cleared at Kandla port in the name of M/s. R.K. International, Ahmedabad.

4. Inquires were made from M/s. Trinity Shipping & Allied Services Pvt. Ltd. Firm and statements of its Director Shri Solly Perumal as well as other related persons said to be involved in this case were recorded under Section 108 of the Customs Act, 1962.

5. Shri Jolly Perumal in his statements recorded on 8.8.93, 15.8.93, 28.8.93, 8.9.93, 9.9.93, 10.9.93, 11.9.93, 21.9.93 inter alia stated that:-

(i) The original import documents in respect of import consignment of M/s. R.K. International and M/s. Natraj Metal Pvt. Ltd. were received by him from Shri K.V. Gopalkrishnan and he had filed the Bill of Entry for clearing these two consignments as per instructions received from Shri Gopalkrishnan.

(ii) He was present during the examination of the goods imported in the aforesaid two consignments.

(iii) The Bill of Entry for clearing the consignment of M/s. R.K. International was filed by the Company, whereas the Bill of Entry for clearing consignment of M/s. Natraj Metal Pvt. Ltd., and M/s. Ram Metal Industries were prepared by Shri S.D. Rao under the instructions and both these Bills of Entry were prepared by his employee Shri M.K. Devis as importer as per his instructions.

(iv) The import documents for clearing the consignment of M/s. Ram Metal Industries were received from Shri Om Prakash Punjabi, who had telephonically contacted him on 28.7.93 and requested to process the documents for clearance of this consignment.

(v) He had received an amount of Rs. 3 lakhs in cash from Shri Gopal Krishnan during the second week of June, 1993 as consideration for clearing the consignments