Usha International Limited Vs Commissioner of Customs (Imports) (CESTAT Chennai)
Introduction: In the case of Usha International Limited vs Commissioner of Customs (Imports), the appellant, Usha International Limited, challenges the Order-in-Appeal issued by the Commissioner of Customs (Appeals), Chennai. The dispute revolves around the alleged mis-declaration of Maximum Retail Price (MRP) on imported goods and subsequent actions taken by the Customs authorities.
Background: The appellant filed a Bill-of-Entry for the clearance of goods supplied by a Hong Kong-based company. The declared value of the goods was USD 39042.40 (FOB), with an assessable value of INR 27,29,010/-. The issue arose when the Customs officials observed a discrepancy in the MRP affixed on the pre-packaged goods, leading to a differential duty demand. The appellant claimed exemption from Special Additional Duty (SAD) under a Customs Notification.
Contentions: The Customs authorities alleged that the appellant mis-declared the MRP to evade duty. In response, the appellant presented evidence, including emails and a purchase order, to demonstrate that the declared MRP was based on an understanding with the supplier. The vendor had agreed to revise the MRP to INR 2650/- due to fluctuations in the exchange rate, but the actual goods had an MRP tag of INR 2100/-.
Procedural Developments: A Show Cause Notice was issued, proposing confiscation of goods and penalties under relevant sections. The original authority ordered the rejection of the declared MRP, re-assessment at INR 2650/- per piece, and confiscation with an option for redemption on payment of a fine. The Commissioner (Appeals) upheld this decision.
Issues to be Decided:
