Harish Chander, Member (J)

1. M/s. Singapore Colour Centre, Madras have filed an appeal being aggrieved by the order passed by the Collector of Customs, Madras. Briefly the facts of the case are that the appellants had filed Bill of entry for the clearance of goods. The description of the goods in the Bill of Entry was given as 'Four sets of Second-hand KIS brand Still PHOTOGRAPHY PROCESSING AND PRINTING EQUIPMENT'. The appellants had declared the value of the goods at Rs. 1,06,146.00 on the basis of the invoice No. PC 0202/87 dt. 2nd Feb., 1987 issued by M/s. Premier Commercial Enterprises in favour of the importers. In the invoice the value of the goods was shown as US $ 8,000/- GIF Madras and the description was given as :-

"Four sets of Second-hand KIS brand still photography processing and Printing Equipment." The equipment is stated in the OGL APP. 1 Part B List 8 Item No. 39 of Import Export Policy 1985-88. The goods are in very good condition and as per your order dt. 12-12-86. The equipments comprise the following:

(a) Four - DN Negative Processors Serial Nos. 3924, 2525, 3914 & 3923.

(b) Four Colour Printer Serial Nos. 2225, 2161, 1911 & 1907.

(c) Four Film Dryers.

(d) Four sets of wooden cabinet stands for the film processors and printers."

2. As the goods imported were second-hand, a certificate dated 27-1-1987 issued by Daplas Electronics (P) Ltd., Chartered Engineers, certifying that the following 4 sets were KIS Mini Lab Colour Photographic Processing System viz.,

(a) DN Negative processors Sl. Nos. 3924, 2525, 3914 & 3923.

(b) Magnum speed printer Sl. Nos. 2225, 2161,1911 & 1907.

together with their associated Film Dryers and Wooden Cabinet stands for the above mentioned sets were inspected and the age of the machine was certified as 3 years and the then value of the same was US $ 2,000/- per set. The importers also produced a copy of catalogue of M/s. KIS INDUSTRIES (P) LTD, for the KIS Mini Lab system as well as KIS Colour Analyser. In the catalogue it is clearly slated that the KIS Mini Lab system was comprised of 4 standard components viz, the CPU Chemical preparation and storage Unit, the DN Negative processor, the Magnum speed printer and the film dryer cabinet. Further it was stated that the system was designed to print photographs in 3 sizes viz., 3R, 4R and 5R.

3. The clearance of the goods was sought under OGL App. 1, Part B, List 8, Item 39 of the Import Policy for AM 88. The appellants also subscribed to the declaration as to the truth of the contents in the bill of entry as provided for under Section 46(4) of the Customs Act, 1962. An information was received to the effect that the party imported excess goods over and above the goods declared in the bill of entry and had not furnished the details while filing the bill of entry. Accordingly the case was taken up for investigation. Preliminary scrutiny of the documents like packing list revealed that even though the gross weight was declared as 9500 kgs. in the bill of lading, the net weight of the 16 cartons to be stuffed in the container was found only to be 640 kgs. The importers originally declared a gross weight of 720 kgs. and net weight of 640 kgs. and later the gross weight was amended to read as 9500 kgs. Detailed examination of the consignment was done in the presence of Shri Abdul Rasheed, Power of Attorney of the Appellant Firm. It was found that there were 163 packages as against 16 packages as declared in the packing list. It was also found that the following goods were available as against 4 sets of second-hand KIS brand Mini Lab System :

(e) 3 Packages Negative album empty plastic spools and 2 packages wires (used) besides the above the following goods (personal effects) were also found :-

(a) Aerometer Imperial Dust Cleaner (used) & Hitachi Vacuum Cleaner (used)

(b) Safety Steel Vault

(c) Used Air-conditioner with Stabilizer

(d) Furniture (Wooden Table 2 set Steel Stools 5)

(e) Two Water Pumps (used), and

(f) 4 Nos New Cotton Shirts

4. A statemen