Epsilon Eye Care Pvt Ltd Vs Commissioner of Customs (CESTAT Mumbai)
The appeals in question arise from a common adjudication order of the Commissioner of Customs (Airport Special Cargo), Mumbai, concerning the import of intraocular lenses (IOLs) by post, involving M/s Epsilon Eye Care Pvt Ltd and its Director, Shri Shyam Anand. The adjudication addressed both live and past consignments, with allegations of undervaluation, misdeclaration, and non-compliance with licensing requirements under the Customs Act, 1962. The adjudicating authority ordered recovery of differential duty totaling ₹1,69,74,756 on 8,332 lenses from 49 earlier consignments, re-assessed at ₹4,05,28,010, alongside enhanced valuation of live consignments. Additionally, 5,977 lenses valued at ₹2,90,72,962 were held liable to absolute confiscation under section 111(d), while 2,355 lenses valued at ₹1,14,55,048 were held confiscable under section 111(m), with an option for redemption on payment of ₹11,00,000. Penalties were imposed under sections 114A, 114AA, and 112 of the Customs Act on both the company and the individual director.
Two categories of imports were identified. The first category involved goods with misdeclared value but otherwise eligible for clearance under section 47. The second included goods that violated licensing requirements and were not entitled to clearance for home consumption. The adjudicating authority further ordered disposal of seized foreign-brand IOLs at the appellant’s manufacturing unit, citing potential harm to public health. The CESTAT noted that the Customs Act provides for confiscation, with goods vesting in the Central Government under section 126, and that adjudicating authorities act merely as custodians. Consequently, directing disposal under the Disposal Manual, 2019 exceeded the adjudicator’s authority and was struck down.
