G.P. Agarwal, Member (J)

1. This appeal is directed against the adjudication order No. 34/85-PREV. dated 2.8.1985 (issued on 6.9.85) passed by the Collector of Customs (Preventive), West Bengal, ordering the confiscation of seized goods under Section 111(d), (m) and (p) of the Customs Act,1962 with an option to redeem the same on payment of redemption fine of Rs.50,000/- in lieu of confiscation and also to pay duty at the appropriate rate on the revised value.

2. Factual backdrop: The appellants M/s Micro Electronics, Calcutta, inter-alia carries on business of manufacturing video cassettes in their factory at Calcutta, duly registered as a small scale Industrial Unit with the Directorate of Industrial, Cottage & Small Scale Industries, Govt. of West Bengal, Calcutta. They are duly licenced under the provisions of Central Excises and Salt Act, 1944. It was the case of the department that on the secret information that the appellants illegally imported 5000 pcs. of complete Video Cassettes in the name of M/s Bharat Laxmi Trading Co. Ltd., Calcutta and M/s East Asia Skin Corpn., Calcutta in the guise of assembling of the component parts and also that they imported full Video Cassettes including jackets, catalogues, tapes fitted with spools, screws and leaflets which arc required to make complete video cassettes, the office-cum-factory of the appellants was searched on 24.11.84 resulting in recovery of 600 pcs. of Video Magnetic tapes valued at Rs. 60,000/-. The said goods as well as some incriminating documents which were found during the search were seized. Besides notices (detention orders) under Section 110 of the Customs Act,1962 were also issued covering 5 cases of Video Cassettes without tapes lying at the godown of M/s Bengal Bond, Calcutta; 3 cases Video Cassettes tapes and 1 case of Video Magnetic tapes lying at the godown of M/s Kilburn & Co., Calcutta and one case of Video Magnetic tapes and 300 pcs. of Video cassettes without tapes lying at the factory of the appellants. During the investigation M/s N.N. Bosc & Nephew, authorised Customs House Clearing Agents presented 4 (four) Bills of Entry in the Customs House, Calcutta under Section 46 of the Customs Act,1962 by declaring the names of the concerned importers as:-

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The goods covered by Sl. Nos. 1 and 2 above were cleared for home consumption on payment of duty on the basis of the declaration made therein. The goods covered by Sl. No. 3 were warehoused in the Bengal Bonded Warehouse, Strand Road, Calcutta and the last Bill of Entry under Sl. No. 4 was under process in the Appraising Deptt., Custom House, Calcutta. M/s Micro Electronics showed their names as importers for the goods imported through M/s Bharat Laxmi Trading Co. Ltd. Other two Bills of Entry were shown in the name of M/s East Asia Skin Corpn. as importers.

3. During the investigation the cargo was also examined and it was found that M/s Micro Electronics imported 5000 pcs. of Video Cassettes without magnetic tape with 5000 pcs. hubs, 25,000 pcs. screws, 10,000 pcs. steel guide rollers, 5000 pcs. plastic jackets covered by another plastic papers, 5000 stickers, 5000 pcs. catalogues marked AKAI Video Cassettes VE 18 made in Japan (i.e. a hub, 5 screws, 2 steel guides, one plastic jacket, one catalogue, one sticker, with one Video Cassette without tape) under importation through M/s East Asia Skin Corpn. under line Nos. 73 & 75 and case Nos. 1 to 10 ex. M.V. Oriental Crown, Imp. Rot. No. 349/84. Accordingly they imported 5000 pcs. Video Magnetic tapes through M/s Bharat Laxmi Trading Co. Ltd., under Line Nos. 72 & 74 and case Nos. 11 to 14 ex. M.V. Oriental Crown, Imp. Rot. No. 349/84. All the components parts including the screws, catalogue and all other accessories required for making complete Video Cassettes without any indigenous parts whatsoever were imported by M/s Micro Electronics. The declared weights of 5 cases of Video Cassette without tape were 140 kgs. gross and 100 kgs. nett., whereas th