Vikram Traders Vs Customs Excise and Service Tax Appellate Tribunal (Madras High Court)
The Madras High Court decided a batch of four civil miscellaneous appeals arising from an order of the Customs, Excise and Service Tax Appellate Tribunal concerning alleged misdeclaration of imported goods and imposition of penalties under the Customs Act, 1962. The principal issue related to a consignment imported under a Bill of Entry dated 26.10.2006, declared as cotton griege (grey) fabric and cleared by claiming duty exemption under a DFRC licence. Upon examination by the Directorate of Revenue Intelligence, the goods were found to be corduroy and not grey fabric, leading to seizure and adjudication. The Order-in-Original denied exemption, demanded duty and CVD, confiscated the goods under Section 111(m) for misdeclaration, allowed redemption on payment of fine, and imposed penalties on the importer, associated firms, and individuals under Sections 112 and 114A of the Act.
The Tribunal substantially confirmed the adjudication order, recording a categorical finding that the imported goods were corduroy and that misdeclaration was established, though it reduced the quantum of penalties. Before the High Court, the importer did not dispute the nature of the goods but contended that they fell within the scope of grey cotton fabric. The Court rejected this contention and held that the finding of misdeclaration was supported by evidence and concurrent findings of fact. Accordingly, the appeals challenging confiscation and penalties on the importer and partner were dismissed, and the substantial questions of law were answered in favour of the Revenue.
