S. Iqbal Vs Commissioner of Customs (Air) (CESTAT Chennai)
Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) Chennai has upheld penalties imposed on an importer and an alleged mastermind in a case involving the misdeclaration and undervaluation of imported “glass chatons.” In its order pronounced on May 28, 2025, the tribunal dismissed appeals by S. Iqbal, identified as the orchestrator, and G. James, the proprietor of M/s. Royal Traders, the importing entity, affirming their respective penalties and the confiscation of goods.
The Revenue’s case, as detailed in the Order-in-Original No. 686/2012 (Air) dated December 14, 2012, originated from an intelligence input received by the Directorate of Revenue Intelligence (DRI).
Investigation and Initial Findings
The investigation focused on a Bill of Entry (No. 295192 dated September 17, 2010) filed by M/s. Royal Traders, Chennai, for the clearance of 1239 kgs of goods. These goods were declared as “China Glass Imitation Stone,” with an accompanying commercial invoice valuing them at $12 per Kg, totaling $14,868.
Upon examination conducted in the presence of Shri G. James, who claimed to be the IEC (Importer-Exporter Code) holder and proprietor of M/s. Royal Traders, DRI officers discovered “888” brand glass chatons of various sizes. This finding contradicted the declared description, leading to the seizure of the goods under a mahazar (a document recording findings during a search or seizure) on October 6, 2010.
