2017 (6) TMI 191 - AT - Customs

Tribunal Upheld Duty & Penalty, Rejects Remand Request

M/s swala Agency Versus CC, Cochin

The Tribunal upheld the confirmation of differential duty, redemption fine, and personal penalty imposed for misdeclaration of goods in terms of quantity ... Validity of impugned order - the learned Commissioner(Appeals) has discussed that the value has been refixed only on the basis of the value given by the appellant by producing the genuine invoice, Commissioner(Appeals) has not discussed the reasons for confirmation of differential duty in respect of the two earlier Bills of Entry - Held that: - The undervaluation has been sustained by the original authority on the basis of the invoice indicating correct valuation submitted by the proprietor of the importer himself at the time of investigation by the Revenue. As such, prima facie, the case of undervaluation appears to be sustainable - appeal allowed by way of remand. Issues involved:Misdeclaration of goods in terms of quantity and value, confirmation of differential duty, confirmation of redemption fine and personal penalty, sufficiency of discussion in the impugned order, request for remand for de novo decision, basis for demand of differential duty, requirement of pre-deposit of duty demands.Analysis:The appeal was filed against the Order-in-Appeal dated 21/11/2013 concerning the misdeclaration of goods in terms of quantity and value. The original adjudicating authority refixed the assessable value of the goods covered by a specific Bill of Entry, confirmed customs duty, and imposed a redemption fine and personal penalty. The first appellate authority upheld these findings. The appellant argued that the impugned order lacked detailed discussion on all issues, especially regarding the confirmation of differential duty for earlier Bills of Entry. The appellant requested setting aside the order and remanding the case for a fresh decision. The appellant also offered to deposit the duty demanded on the live Bill of Entry. The Revenue supported the impugned order, stating that the demand of differential duty was based on correct invoices submitted by the proprietor during interrogation. The dispute involved multiple Bills of Entry with undervalued goods and misdeclaration of quantity in one case. The undervaluation was supported by the genuine invoice provided by the importer. The Tribunal held that the case of undervaluation seemed sustainable, requiring the appellant to pre-deposit the confirmed duty demands on both live and earlier Bills of Entry. A stay was granted for other amounts demanded upon compliance with the pre-deposit conditions. The order was pronounced on 02/05/2017.