Case Law Details
Jain & Sons Vs Commissioner of Customs (CESTAT Delhi)
CESTAT Delhi held that re-valuation of goods without first rejecting the transaction value of the goods is not in accordance with law. Show cause notice without proposal of rejection of transaction value or demanding differential duty is both speculative and presumptive.
Facts- The issue in this appeal is whether order of confiscation with respect to paper cup machines imported vide bill of entry No. 5275518 dated 16th May,2016 is justified under Section 111 (m) of the Act, with option to redeem on payment of redemption fine of ₹ 20 lakhs. Further, penalty of Rs.2,20,000 is imposed on the appellant under Section 112 (a) of the Act.
Notably, it is mainly alleged that the imported goods are under-valued as well as mis-declared.
Conclusion- I further find the show cause notice is bad as the same does not propose rejection of transaction value nor the demand of differential duty. Thus, I find that the show cause notice is both speculative and presumptive.
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