TaxTMI 
TaxTMI 
2026 (2) TMI 853
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....ng a different value, it cannot be considered to determine the duty because the other invoice was meant for private purposes and was not meant for assessment of duty. He had placed reliance on a decision of a coordinate Bench of this Tribunal in support of this contention. This Bench doubted the correctness of the decision of the coordinate Bench and referred the matter to a Larger Bench by order dated 10.04.2023. The Larger Bench constituted by the Hon'ble President issued an order dated 25.06.2025 answering the question as follows :- 31. The reference is, accordingly, answered in the following manner: "Even if the importer produces one invoice with the Bill of Entry and other invoice for the same consignment is found in the private records or e-mail of the importer showing a different value, the customs duty under section 14 of the Customs Act can be determined on the basis of the transaction value reflected in the invoice retrieved from the email account of the importer." 2. Thereafter the matter has been listed now before us. 3. We have heard Shri V.K. Puri, learned counsel for the appellant and Shri Ranjan Prakash and Shri Nikhil Mohan Goyal, learned au....
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....on of the goods of Container No. OOLU1795505 under section 111 (f) & 111 (m) of the Customs Act, 1962 and give an option to Noticee No. 1 to redeem the same on payment of a redemption fine of Rs. 1,00,00,000/- (Rupees One Crore only) in lieu of confiscation under section 125 of the Customs Act, 1962. 7. Penalty of Rs. 6,24,000/- (Rupees Six Lakh Twenty Four Thousand only) is imposed on M/s Shivam Marketing, Noticee No. 1 under section 112 (a) of the Customs Act, 1962. 8. Penalty of Rs. 6,24,000/- (Rupees Six Lakh Twenty Four Thousand only) is imposed on Shri Gaurav Kushwaha, Noticee No. 2 Partner of M/s Shivam Marketing under section 112 (a) of the Customs Act, 1962 for his acts of omission and commission that has rendered the goods liable to confiscation. 9. Penalty of Rs. 25,00,000/- (Rupees Twenty Five Lakhs only) is imposed on Shri Gaurav Kushwaha, Noticee No. 2 partner of M/s Shivam Marketing under section 114AA of the Customs Act, 1962 for his omission and commission for the preparation and usage of false/fabricated documents. 10. This order is issued without prejudice to any other action that may be taken against the assessee or any other ....
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....hatons (38030.06) Resin Bangles (891.01) Plastic Resin (14643.86) Total 317479.94 65884.52 Weight in KG Glass Chatons (10003.85) Glass Beads (8807.070) Glass Chatons (1229.780) Resin Bangles (278.440) Total Wt. (Net) 19462.700 19484.500 7. DRI investigated the matter further and also looked into the past imports of Shivam and issued the SCN proposing redetermine of the value in respect of 5 past Bills of Entry which are listed on Annexure B to the SCN in addition to the redetermining the value in respect of Bill of Entry No. 549. 8. The issues to be decided by us are as follows :- (i) Re-determination of the value of the goods in Bill of Entry No. 549 dated 05.03.2015 and finalization of the assessment of this Bill of Entry accordingly. (ii) Confiscation of the goods imported under this Bill of Entry under section 111 (f) of the Customs Act, 1962 and imposition of a redemption fine under section 125 of the Act in lieu of confiscation. (iii) Re-assessment of the duty in respect of past 5 Bills of Entry listed in Annexure B to the SCN (iv) Confiscation of the goods imported in Container No. OOLU1795505 u....
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....2015 is concerned. 11. Next question is of confiscation of the goods under section 111 (f) of the Act and imposition of redemption fine of Rs. 25,00,000/- in lieu of confiscation. Section 111 (f) reads as follows :- SECTION 111. Confiscation of improperly imported goods, etc. (f) any dutiable or prohibited goods required to be mentioned under the regulations in an arrival manifest, import manifest or import report which are not so mentioned; 12. This section provides for confiscation of any dutiable or prohibited goods required to be mentioned in the import manifest, but which were not so mentioned. Evidently, it is the responsibility of the shipping line to file the IGM mentioning details of all goods. It must also be noted that the IGM indicates Bill of Lading-wise details. The master of the vessel receives goods in containers from the exporters on "said to contain" basis. If a container is said to contain A and is sealed, the master of the vessel is not expected to ensure that, it indeed, contains A. If it is found that the container in fact contained some other goods or in larger quantity, the master of the vessel is not responsible at all. Section 111 (....
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.... entry made under this Act or in the case of baggage with the declaration made under section 77 in respect thereof, or in the case of goods under transhipment, with the declaration for transhipment referred to in the proviso to subsection (1) of section 54; 16. Evidently, unless the Bill of Entry has been filed and the goods which are actually being imported do match the description in the Bill of Entry section 111 (m) will not apply. In the absence of any Bill of Entry being even referred to in the impugned order, confiscation cannot be sustained under section 111 (m). As far as section 111 (f) is concerned, as already mentioned this would only apply to wrong declaration in the IGM by the master of the vessel and will not apply to any declaration by importer. 17. In view of the above, the confiscation of these goods and the consequential redemption fine cannot be sustained and need to be set aside. 18. Since, we have set aside the confiscation of the goods, we do not find any basis to uphold the penalties imposed on Shivam and Gaurav under section 112. Section 114AA reads as follows :- SECTION 114AA. Penalty for use of false and incorrect material. - If a person ....