CESTAT Quashes Customs Duty Demand for Undervaluation, Cites Lack of Independent Evidence and Credible Audit Report

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....The CESTAT set aside the impugned order confirming customs duty demands against the appellants for alleged undervaluation through inflated freight invoices in related party transactions. The Tribunal found the adjudicating authority erred by relying solely on cost sheets from the related shipping line without addressing the appellants' demonstrated practice of selecting lowest freight quotations from multiple shipping lines. No independent evidence established inflated freight charges or intent to evade duty. The report by the accounting firm, prepared under statutory obligations and affirming arm's length transactions, was held credible and could not be disregarded without contrary proof. Payments made during investigation were deemed unde.........