CESTAT confirms duty of R.5.6 lakhs for mis-declaration & under-valuation

The Appellate Tribunal CESTAT NEW DELHI confirmed duty amounting to approximately R.5.6 lakhs due to mis-declaration of imported goods and under-valuation. The appellant was directed to make a pre-deposit of 50% of the duty amount within 8 weeks. Upon compliance, the remaining dues would be waived, and recovery of the balance dues stayed during the appeal process.

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Issues: Mis-declaration of imported goods, under-valuation, imposition of penalties, pre-deposit of duty amount

The judgment by the Appellate Tribunal CESTAT NEW DELHI involved a case where duty amounting to approximately R.5.6 lakhs was confirmed due to mis-declaration of imported goods and under-valuation. The appellant had initially declared the goods as processed coral waste, but investigations revealed that the goods were actually coral and had been under-valued. Statements from the partners confirmed the under-valuation and issuance of under-valued invoices by the supplier. Consequently, proceedings were initiated, resulting in the confirmation of the demand and imposition of penalties.

The Tribunal, after hearing both sides, acknowledged the contentious and arguable nature of the issue. They noted that the duty amount confirmed against the appellant was relatively low. Therefore, the Tribunal deemed it appropriate for the appellant to make a pre-deposit of 50% of the duty amount within 8 weeks to serve the interest of justice. Upon compliance with this directive, the pre-deposit of the remaining dues would be waived, and the recovery of the balance dues would be stayed during the pendency of the appeal.

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