Em Pee Bee International Vs N.C. Alexander (CESTAT Chennai)
The appeals arose from a common Order-in-Original dated 28.09.2007 passed by the Commissioner of Customs, Chennai. The order rejected the declared transaction value in respect of 37 Bills of Entry relating to imports of apples from the United States, re-determined the assessable value, demanded differential customs duty of approximately Rs. 98 lakhs, ordered confiscation of goods valued at approximately Rs. 7.35 crores, and imposed penalties on the importer as well as on another individual for alleged abetment.
The importer had imported apples during the period from March 2001 to March 2003 and declared values ranging between USD 10.5 and USD 12 per carton. The Directorate of Revenue Intelligence alleged that the importer had undervalued the goods by maintaining two sets of invoices: one allegedly reflecting the actual higher value and another showing lower values for customs purposes. The Department relied upon e-mails, alleged parallel invoices, insurance documents, overseas verification reports, and statements recorded under Section 108 of the Customs Act to support the allegation of undervaluation.
The appellants challenged the findings of the adjudicating authority on both factual and legal grounds. They contended that the Department had failed to establish that the declared transaction value was not genuine. According to the appellants, all imports were supported by commercial invoices, payments had been made through banking channels, and there was no evidence of extra remittance or any flowback of consideration.
