JUSTICE DILIP GUPTA:

All the six Customs Appeals seek the quashing of the order dated 05.09.2007 passed by the Commissioner of Central Excise (Adjudication)¹1. the Commissioner. The said order rejects the declared transaction value of the goods imported by M/s Baba Leather Impex Private Limited²2. Baba Leather, M/s Trade & Trends, M/s Do Best Trade Corporation, M/s Trade Dignity and M/s Baba Le Crafts (P) Ltd³3. the appellants who have filed Customs Appeal No. 49 of 2008, Customs Appeal No. 51 of 2008, Customs Appeal No. 52 of 2008, Customs Appeal No. 53 of 2008 and Customs Appeal No. 54 of 2008 respectively and has re-determined the value. Accordingly, differential duty has been directed to be recovered with interest and penalty. Customs Appeal No. 50 of 2008 has been filed by Raj Kumar Anand, Managing Director of Baba Leather for setting aside the penalty imposed upon him under section 112(a) and (b) of the Customs Act, 1962⁴4. the Customs Act.

2. It transpires from the records that searches were conducted by the officers of the Directorate of Revenue Intelligence⁵5. the DRI in the office, residence and godown premises of M/s Baba Leather and individuals involved. Details of the premises are as follows:

(i) Office premises of M/s Baba Leather Impex Pvt. Ltd. at 5328/67, Hardhian Singh Road, Karol Bagh, New Delhi;

(ii) Residential premises of Raj Kumar Anand, at 49/21, East Patel Nagar, New Delhi;

(iii) Godown premises of M/s Baba Leather Impex Pvt. Ltd. at 5954/3, Hardhian Singh Road, Karol Bagh, New Delhi;

(iv) Godown premises of M/s Baba Leather Impex Pvt. Ltd. at 498, Guru Harkishan Nagar, New Delhi;

(v) Godown premises of M/s Baba Leather Impex Pvt. Ltd. at 9/6535, Hardhian Singh Road, Karol Bagh, New Delhi; and

(vi) Godown premises of M/s Baba Leather Impex Pvt. Ltd. at 6093, Padam Singh Road, Karol Bagh, New Delhi.

3. Import documents, cash amounting to Rs. 83,00,00/- and a laptop were recovered. Raj Kumar Anand was also taken to the office of the DRI and was kept in custody from 27.05.2005 to 29.05.2005 and statements were recorded under section 108 of the Customs Act. According to Raj Kumar Anand, he was coerced to submit five drafts, all dated 28.05.2005, amounting to Rs. 36,25,969/-. Raj Kumar Anand was also arrested on 29.05.2005 and produced before the Duty Magistrate, Patiala House Court. According to Raj Kumar Anand, on the very next day, i.e. 30.05.2005, he submitted a letter addressed to the Court retracting the statements, stating that the statements were recorded by force and that he was made to sign documents and make the deposit by force. Raj Kumar Anand also stated that he was beaten and subjected to mental torture.

4. A show cause notice dated 29.11.2005 was issued to all the appellants alleging that all the five importers were controlled by Raj Kumar Anand and that he had mis-declared the thickness of the imported PU leather fabric and value to evade payment of custom duty. Accordingly, it was proposed to demand customs duty with interest and penalty, in respect of the goods imported through 404 Bills of Entry by taking recourse to the proviso to section 28(1) of the Customs Act.

5. The appellants filed replies to the show cause notice and denied the allegations made in the show cause notice. The appellants also adduced:

(i) Data pertaining to accepted unit prices relating to import of identical/similar goods cleared in the contemporaneous period to demonstrate that the declared values were in consonance with accepted values of identical/similar goods cleared by Customs Authorities;

(ii) Letter dated 30.05.2005 filed by Raj Kumar Anand through Superintendent Tihar Jail retracting the statements;

(iii) Copies of information obtained under Right To Information Act pertaining to assessment/examination/determination of value in respect of impugned consignment cleared through the ports of JNPT, Nhava Sheva; ICD, Patparganj, Delhi; Air Cargo, New Delhi; Air Cargo, Kolkata; Sea Port, Kolkata; and Sea Port, Co