Ankit Impex Vs Principal Commissioner of Customs (CESTAT Chennai)
M/s. Ankit Impex and M/s. S.B.B. International imported goods declared as “Recycled LDPE Granules” under various Bills of Entry, including Bill of Entry No. 268168 dated 22.07.2009. The goods were classified under CTI 39019090 and cleared on provisional assessment upon execution of bond, with payment of Basic Customs Duty at 5% under exemption Notification No. 21/2002, along with Education Cess and CVD, aggregating to 18.624%.
Based on specific intelligence alleging undervaluation of plastic reprocessed granules by certain importers, including the appellants, investigation was initiated by the Directorate of Revenue Intelligence (DRI). Searches were conducted at the premises of the concerned persons, during which certain documents, including an invoice alleged to be the actual invoice for the goods covered under Bill of Entry No. 268168, were recovered and seized. The Revenue alleged that the declared value in 27 Bills of Entry was incorrect and proposed redetermination of value, demand of differential duty, confiscation under Section 111(m) of the Customs Act, 1962, and imposition of penalties under Sections 112(a), 114A, and 114AA.
A Show Cause Notice dated 23.08.2013 was issued proposing rejection of declared value under the Customs Valuation Rules, 2007 (CVR 2007). The Adjudicating Authority rejected the transaction value under Rule 3(1) and Rule 12(1), holding that the importers had submitted false invoices to evade duty. Since the value could not be determined under Rules 4 to 8 due to lack of reliable data, the Authority applied Rule 9 (residual method) and doubled the declared value for 27 Bills of Entry. Differential duty was demanded, goods were confiscated with option for redemption on fine, voluntary payments were appropriated, and penalties were imposed.
