Saravanan Palaniappan Vs Commissioner of Customs (CESTAT Chennai)
CESTAT Chennai held that the impugned order is liable to be set aside since declared assessable value of imported black pepper accepted. Accordingly, the appeal is allowed and penalties-imposed u/s. 112 and 114AA of the Customs Act quashed.
Facts- The present appeals are filed against the common Order-in-Original passed by the Commissioner of Customs, Tuticorin dated 20.11.2020 whereby the Commissioner has inter alia rejected the declared transaction value in respect of 10,79,000 Kgs. of Black Pepper imported vide various Bills of Entry and re-determined the same as ₹30,12,86,095/- in terms of Rule 3(1) and Rule 9 of Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 read with Section 14 of the Customs Act 1962. In the said order, the Commissioner has also declared the Black Pepper which is imported/impounded here, in these appeals, as ‘Prohibited’, had therefore been improperly imported and hence, liable for confiscation under Sections 111(m) and (o) of the Act ibid. Further, penalty under section 112 and 114AA of the Customs Act, 19962 are also imposed.
Conclusion- The next question is, is the goods imported, a prohibited goods in India? Our answer is a firm NO since, firstly the DGFT Notification No. 21/2015-2020 (supra) though prohibits the import as a policy, however the policy condition is not absolute. The same is subject to the condition that ‘… import is free if CIF is above Rs. 500/- per Kg.’ So, the subject goods is made ‘prohibited’, once again in a grave defiance of the condition of a guiding Rule/Circular issued in this regard, by ignoring that the prohibition is only a conditional one and not an absolute one.
