C. Solomon Selvaraj Vs Principal Commissioner of Customs (Madras High Court)
Summary: The petitioner challenged Order-in-Original No.105387/2024 dated 19.03.2024, by which he was held jointly and severally liable with other notices for differential customs duty of Rs.4,56,00,374/- under Section 28(4) read with Section 28(8) of the Customs Act, 1962, with applicable interest under Section 28AA, an equivalent penalty under Section 114A, and an additional penalty of Rs.10,00,000/- relating to alleged false documents.
The dispute arose from Bill of Entry No.4228874 dated 01.12.2017 filed in the name of M/s.R.M. Enterprises. On specific intelligence, the Directorate of Revenue Intelligence, Chennai Zonal Unit intercepted the consignment, declared as gas stoves and spare parts, and found 2,01,13,000 pieces of sewing machine needles of the brands “Organ” and “Flying Tiger” and 70,200 pieces of steel measuring tapes concealed behind the declared goods. The undeclared goods were not shown in the Bill of Entry, invoice, packing list or other clearance documents.
The investigation found that M/s.R.M. Enterprises was owned by Ramesh Menon and that the address furnished for the importer was fictitious. Persons allegedly connected with the transaction, including Vishal, could not be traced. The petitioner, proprietor of M/s.The Sea Shipping Forwarders, was alleged by the Department to have received the import documents from Vishal, handed them to M/s.Asian Shipping Agencies, instructed the Customs Broker to file the Bill of Entry in the name of M/s.R.M. Enterprises, paid customs duty from his firm’s bank account, obtained the delivery order, and arranged examination and clearance.
