Sadani Brothers Vs Commissioner of Customs (Port) (CESTAT Kolkata)
In Sadani Brothers Vs Commissioner of Customs (Port), the CESTAT Kolkata examined whether the Customs Department was justified in enhancing the declared transaction value of imported fishing nets based on comparable import data without following the mandatory procedure prescribed under the Customs Valuation Rules, 2007.
The appellant imported a consignment of fishing nets from Malaysia weighing 25,958.20 kilograms at a declared unit price of USD 5.20 per kilogram under an invoice dated 14.05.2022. A Bill of Entry was filed on 29.05.2022 along with invoices, packing lists, and other supporting documents. The consignment underwent 100% physical examination and was initially found to be in conformity with the declarations made in the Bill of Entry. However, the consignment was later put on hold based on an alert issued by the Special Intelligence Branch (SIB). A second 100% examination conducted on 03.06.2022 again confirmed that the goods matched the declarations made by the importer.
Despite this, proceedings were initiated on the ground that the declared assessable value was lower than the value of comparable imported goods. The adjudicating authority enhanced the assessable value from USD 5.20 per kilogram to USD 7.07 per kilogram and determined differential customs duty liability. The appellant paid differential duty of ₹1,90,769 and interest of ₹14,033 under protest to secure clearance of the goods. The Commissioner (Appeals) upheld the enhancement, leading to the present appeal before the Tribunal.
