TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Customs Tribunal overturns penalty for misdeclaration, reduces another, and dismisses appeal over fraudulent imports.</h1> <h3>MSK International, K. Saravanan, Sujath Ali Versus Commissioner of Customs (Air), Chennai</h3> MSK International, K. Saravanan, Sujath Ali Versus Commissioner of Customs (Air), Chennai - 2019 (369) E.L.T. 1082 (Tri. - Chennai) Issues: Misdeclaration of goods, undervaluation, imposition of penaltiesMisdeclaration of Goods:The case involved the misdeclaration of goods by importing 'Ceftriaxome Sterile' instead of 'Cetriaxone Sodium' to evade Anti Dumping Duty. The importer, M/s. K.S.R Pharmacy, Chennai, imported goods under the name of M/s.MSK International, Chennai, with gross undervaluation. The investigation revealed that the importer, Shri Sujath Ali, imported the goods under the name of M/s.MSK International, using the IEC code of MSK International. The original authority re-determined the value of the goods and imposed Anti-Dumping Duty as per the relevant notification.Undervaluation and Penalties:The investigation found that the goods were undervalued, leading to the imposition of penalties, confiscation of goods, and demand of duty. The adjudicating authority confirmed a differential duty, appropriated the amount paid during investigation, and held the goods liable for confiscation under the relevant legal provisions. Penalties were imposed on Shri Sujath Ali and Shri K. Saravanan. The penalties were challenged by the appellants before the Tribunal.Legal Analysis and Tribunal's Decision:The Tribunal considered the arguments presented by both sides. It was argued that the full chemical name was declared in the Bill of Entry, but the Tribunal found that the misdeclaration was done to evade Anti Dumping Duty. The Tribunal set aside the penalty imposed on Shri Sujath Ali, as the penalty under Section 13 (b) of the Drugs and Cosmetics Act, 1940, could not be imposed by a customs authority. The penalty on Shri K. Saravanan was reduced from &8377; 1 lac to &8377; 50,000 as he was not directly involved in the fraudulent import activities. The Tribunal dismissed the appeal filed by MSK International as the penalty on its proprietor was reduced. The judgment highlighted the importance of following legal provisions and ensuring penalties are proportionate to the offense committed.This detailed analysis of the judgment covers the issues of misdeclaration of goods, undervaluation, and imposition of penalties, providing a comprehensive understanding of the legal proceedings and the Tribunal's decision.
TaxTMI 