Priyanka Devi Mourya Vs Commissioner of Customs (CESTAT Kolkata)
These appeals challenge Order-in-Appeal No. KOL/CUS/CCP/KS/137-138/2023 dated 17.02.2023, which upheld the confiscation of betel nuts, redemption fines, and penalties imposed on the appellants. The dispute arose from a Directorate of Revenue Intelligence (DRI) investigation into 54 containers of betel nuts suspected to be of foreign origin and smuggled into India without duty payment. Samples were drawn from 51 containers and sent to the Arecanut Research & Development Foundation (ARDF). Based on ARDF’s reports, five containers containing betel nuts of Indian origin were released, while 49 containers were seized as foreign-origin goods. Of these, 94.28 MT were consigned by M/s Kumar Enterprise and 98.39 MT by M/s Kumar Traders & Company, both owned by the appellants.
In statements recorded under Section 108 of the Customs Act, the proprietors stated that the goods were purchased domestically at prices between Rs. 275-305 per kg and sold at Rs. 290-315 per kg, although the consignors declared a transport value of Rs. 90 per kg. They asserted that any irregularity pertained only to undervaluation for VAT purposes and not to any customs violation.
Show Cause Notices were issued proposing confiscation and penalties. The adjudicating authority ordered absolute confiscation of the seized betel nuts but permitted redemption on payment of fine. Penalties of Rs. 40 lakhs each were imposed on both proprietors under Section 112(b). The Commissioner (Appeals) upheld the findings, leading to the present appeals before the Tribunal.
