Case Law Details
Oliva Care Vs Commissioner of Customs (CESTAT Chennai)
Oliva Care, the appellant, imported goods declared as knitted interlining with a declared value of USD 60 per kg (equivalent to ₹1.75 per meter) under Bill of Entry No. 4686063 dated 19.09.2011. The total declared quantity was 11,815 kg. Upon examination, the samples sent to the Textiles Committee’s Laboratory confirmed the goods were 100% polyester knitted fusible interlining with a GSM of 42.5. The Customs Department suspected undervaluation and noted a discrepancy in the quantity, recording the actual weight as 11,900 kg instead of the declared 11,815 kg.
Proceedings:
The appellant waived the requirement for a show-cause notice. The adjudicating authority, relying on National Import Database (NIDB) data and other documents, rejected the declared transaction value and revised it to USD 0.075 per kg (equivalent to ₹13.01 per meter). The appellant was ordered to pay the differential duty, and the goods were confiscated with an option to redeem them on payment of a ₹2,00,000 redemption fine. Additionally, a penalty of ₹50,000 was imposed under Section 112(a) of the Customs Act, 1962. The Commissioner (Appeals) upheld this decision, prompting the appellant to appeal to the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai.
Arguments:
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