Winsor Enterprises Vs Commissioner of Customs (CESTAT Mumbai)
The CESTAT Mumbai considered appeals filed by M/s Winsor Enterprises and its partners, Junaid Kudia and Sadik Kudia, against the Order-in-Original dated 21 August 2020 passed by the Commissioner of Customs (NA-III), JNCH. The case concerned imports of various bags and PVC leather cloth from China through Nhava Sheva, Mumbai and Chennai. The Directorate of Revenue Intelligence (DRI) alleged that the appellants had undervalued the imported goods in connivance with overseas suppliers and manufacturers to evade customs duty.
Following investigation, including a search of the appellant company’s premises on 11 April 2017, DRI recovered printouts of emails and other documents and recorded statements of persons concerned. The Show Cause Notice dated 4 September 2018 proposed redetermination of assessable value under Section 14(1) of the Customs Act, 1962, differential duty under Section 28(4), confiscation under Sections 111(l) and 111(m), and penalties under Sections 112(a) and 114AA.
For 25 consignments imported through Nhava Sheva, the declared assessable value of Rs.4,01,00,797 was enhanced to Rs.6,13,46,437, resulting in differential duty of Rs.62,54,929 along with interest. The goods were confiscated without redemption fine as they were not physically available. Penalties included Rs.62,54,929 on Winsor Enterprises under Section 114A, Rs.6 lakh and Rs.3 lakh on Junaid Kudia and Sadik Kudia respectively under Section 112(a), and Rs.5 crore on Junaid Kudia under Section 114AA. For four consignments imported through Mumbai, the declared value of Rs.28,38,556 was enhanced to Rs.1,71,02,173, with differential duty of Rs.41,99,351 and corresponding penalties.
