SK Enterprises Vs Commissioner of Customs (CESTAT Chennai)
Arbitrary Valuation of goods without following principles of natural justice cannot be sustained
The CESTAT, Chennai in the matter of M/s. SK Enterprises v The Commissioner of Customs [CUSTOMS APPEAL No. 40017 of 2022 dated June 24, 2022] set aside and held that the revaluation of the goods which are not subjected to Bureau of Indian Standards (“BIS”) specifications was made in arbitrary manner and was not adhere to the principles of natural justice.
Facts:
M/s. SK Enterprises (“the Appellant”) have imported a consignment of Kids Shoes, Plastic Goggles, Hot Fix Stone etc., and filed a Bill of Entry. During the course of examination of the goods by Revenue Department (“the Respondent”), it was found that there were 25 bales of optical lenses and 6 bales of soft toys with foam, and 2 bales of soft toys without foam. The issue was adjudicated by the Joint Commissioner enhancing the declared value and ordering confiscation of the goods and allowed the same to be redeemed in respect of goods for which the Appellants did not have BIS certificate and in an appeal filed by the Appellant, the Commissioner passed an order confirming the Order in Original (“the Impugned Order”) of the lower authority. The Appellant approached the Hon’ble High Court of Madras seeking to set aside reassessment and detention certificate for waiver of demurrage charges.
The Appellant contented that impugned order has enhanced the declared value and ordered confiscation of the goods and allowed the same to be redeemed in respect of goods for which the appellants did not have BIS certificate. The Respondent has confiscated the goods and allowed the redemption for re-export on payment of fine of Rs. 55,000/- and also imposed penalty under Section 112 (a) of the Customs Act, 1962 (“the Custom Act”). Further, in respect of shoes and sandals, the Integrated Goods and Services Tax (“IGST”) rate was levied at 18% whereas the same requires to be levied at 5%.
Issues:
