Case Law Details
S R Traders Vs Commissioner of Customs (CESTAT Mumbai)
In the case of S R Traders vs. Commissioner of Customs (CESTAT Mumbai), proceedings under section 28 of the Customs Act, 1962, were initiated against the appellant, M/s SR Traders. This action pertained to the import of ‘cosmetics’ branded as ‘TYA.’ The bill of entry for these cosmetics was found to be in conformity regarding description and quantity but was allegedly undervalued and non-compliant with Legal Metrology (Packaged Commodities) Rules, 2011, as well as the Drugs and Cosmetics Act, 1940. This led to investigations resulting in an order by the Commissioner of Customs (NS-I), Jawaharlal Nehru Custom House (JNCH), rejecting the declared value and enhancing the assessable value. This article delves into the details of this case, the arguments presented, and its implications.
Detailed Analysis:
Background and Allegations: The case revolves around the import of cosmetics by M/s SR Traders. While the goods were found to be as described and in the correct quantity, allegations of undervaluation and non-compliance with regulations were raised.
Assessable Value Enhancement: The Commissioner of Customs enhanced the assessable value of the imported cosmetics using Customs Valuation Rules, resulting in a duty shortfall. Additionally, penalties and interest were imposed on the appellant.
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