RKPS Impex Private Limited Vs Commissioner of Customs (Import) (CESTAT Mumbai)
The Mumbai Bench of CESTAT partly allowed the appeal filed by M/s RKPS Impex Private Limited against the Order-in-Appeal dated 02.03.2022 concerning import of readymade garments, specifically polyester knitted ladies leggings, from China. The appellant had declared 8,140 dozen (97,680 numbers) at USD 2.50 per dozen. On 100% examination, Customs found 10,979.08 dozen (1,31,749 numbers), resulting in excess quantity. The department also enhanced the assessable value to USD 3.60 per dozen based on NIDB data.
The original authority re-determined the assessable value at ₹30,17,710 and confirmed differential duty of ₹2,19,278. It also imposed penalties of ₹32,982 under Section 28(6)(i) read with Section 28(5) and ₹10,000 under Section 112(a)(ii) of the Customs Act, 1962. The goods were confiscated under Sections 111(l) and 111(m), but were released without redemption fine.
On departmental review, the Commissioner (Appeals) dropped the ₹32,982 penalty but imposed interest under Section 28AA, redemption fine of ₹3,00,000 under Section 125 and upheld the ₹10,000 penalty under Section 112(a)(ii). The importer challenged the redemption fine and penalty before CESTAT.
The Tribunal noted that the supplier’s invoice and packing list themselves declared 8,140 dozen/97,680 numbers. Although Customs found excess goods, there was no evidence showing that the importer had ordered 1,31,749 numbers and deliberately declared only 97,680 numbers. The Tribunal also noted that the valuation basis was not adequately established: while a contemporaneous value of USD 3.38 per dozen was referred to from another Bill of Entry, USD 3.60 was adopted based on assessment group practice, without specific comparable contemporaneous NIDB import value being identified.
