Kayem Exim Private Limited Vs Eskay Enterprises (CESTAT Chennai)
The CESTAT Chennai disposed of four appeals filed by the importers against Orders-in-Appeal affirming adjudication orders relating to imports of used garments. The adjudicating authority had rejected the declared transaction value, enhanced the assessable value, confiscated the imported goods, and imposed redemption fine and penalties. The Department had appealed only against the quantum of redemption fine and penalty before the Commissioner (Appeals), while the importers filed cross-objections challenging the findings on valuation, confiscation and penalty. The Commissioner (Appeals) upheld the adjudication orders, leading to the present appeals.
The appellants imported old and worn clothing during July 2017 to May 2018, declaring the goods under CTH 6309 0000 and valuing them on the basis of supplier invoices. On examination, the consignments were found to contain mixed used garments. The adjudicating authority rejected the declared transaction value under Rule 12 of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 and redetermined the value under Rule 5 based on alleged contemporaneous imports. The goods were also treated as restricted imports under the Foreign Trade Policy for want of a DGFT licence and were confiscated under Sections 111(d) and 111(m) of the Customs Act, 1962, with redemption fine under Section 125 and penalties under Section 112(a).
