Case Law Details
Principal Commissioner of Customs Vs Salasar Impex (CESTAT Delhi)
CESTAT Delhi held that penalty under section 114AA of the Customs Act, 1962 is not imposable as the only declaration made by the respondent is the Bill of Entry and the goods were found as per the declaration in the Bill of Entry.
Facts- The appellant filed a Bill of Entry declaring the imported goods as areca nuts and linear low density polyethylene. On examination, the goods were found as per the declaration in the Bill of Entry and the invoice.
As per notification No. 20/2015-20 dated 25.7.2018 issued by the Ministry of Commerce under the Foreign Trade (Development and Regulation) Act, 1992, import of areca nuts is free if the CIF value is Rs. 251 per kg or more and it is prohibited if the CIF value is less than Rs. 251/- per kg.
The declared CIF value in the Bill of Entry was Rs. 251/- per kg and if this value is considered, the import of the areca nuts is free. Suspecting the areca nuts to be overvalued so as to avoid the prohibition on imports, the officers conducted a market enquiry and determined the market price of the imported areca nuts in India to be between Rs. 100 and Rs. 110/- per kg. Reckoning Rs. 110/- per kg as the CIF price, the original authority held that import of the areca nuts was prohibited and accordingly, found that they were liable for confiscation u/s. 111(d).
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