Vortex Rubber Industries Pvt. Ltd. Vs Principal Commissioner of Customs (Preventive) (CESTAT Delhi)
This order addresses two appeals arising from a common Order-in-Appeal dated March 27, 2024, concerning Vortex Rubber Industries Pvt. Ltd., represented by its Director, Shri H.S. Chadha. The company is engaged in importing Chinese tyres of the “Infinity” and “Wanli” brands.
Background of the Case
In an investigation against M/s Shivani Industries, which was managed and financially controlled by Shri H.S. Chadha, the premises of the appellant were searched on July 16, 2014. Goods found at the premises lacked MRP stickers, a mandatory requirement for availing the exemption from Special Additional Duty (SAD) under Notification No. 21/2012 dated March 17, 2012. These goods were seized and deemed liable for confiscation. During a simultaneous search at Shri Chadha’s residence, loose documents, including an Apple Mac book, were seized.
Subsequently, the appellant filed a Bill of Entry on July 24, 2014, for importing truck tyres and flaps. This consignment was also held, alleging improper valuation and non-affixing of MRP stickers, and was seized under Section 110 of the Customs Act.
Provisional Release and Adjudication
The seized goods were provisionally released upon the appellant’s request, requiring them to furnish bonds, a bank guarantee, and payment of 100% differential duty. Differential duties were assessed as Rs. 3,83,645/- for the goods seized during the search on July 16, 2014, and Rs. 3,94,331/- for the goods covered under the Bill of Entry.
