Reach Infocom Tech Pvt. Ltd. Vs Commr.of Customs (Airport & Admin) (CESTAT Kolkata)
Material Facts
The appellant imported mobile phones and laptops from China under the brand “REACH” and cleared them for home consumption after paying customs duties, including Countervailing Duty (CVD) computed on the declared Retail Sale Price (RSP). Following searches conducted in March 2019, the Directorate of Revenue Intelligence seized goods, MRP stickers, hard disks and documents. Two show cause notices alleged short payment of CVD on the ground that higher MRP stickers were found during the search than those declared at the time of import. By Order-in-Original dated 14.03.2024, the adjudicating authority confirmed differential duty of ₹2,92,54,340 under Section 28(4) of the Customs Act, along with interest, penalties, confiscation of goods, redemption fine and penalties on the Director.
Procedural History
The appellant and its Director challenged the Order-in-Original before CESTAT Kolkata.
Legal Issues
- Whether differential CVD could be demanded by re-determining the declared RSP under Section 3(2) of the Customs Tariff Act.
- Whether relabelling/revision of MRP after import amounted to manufacture under Section 2(f) of the Central Excise Act.
- Whether statements recorded under Section 108 of the Customs Act could be relied upon without following Section 138B.
- Whether differential duty could be demanded without challenging the self-assessed Bills of Entry.
- Whether confiscation, redemption fine and penalties were sustainable.
- Whether the extended period of limitation was validly invoked.
Appellants’ Submissions
