Fire Stone Metal Pvt Ltd Vs Commissioner of Customs (CESTAT Chandigarh)
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chandigarh allowed the appeal filed by Fire Stone Metal Pvt. Ltd. against the Order-in-Original dated 29.03.2024 whereby the Commissioner of Customs, Ludhiana had rejected the transaction value declared in Bills of Entry under Rule 12 of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007, re-determined the value under Rule 9 of the said Rules based on the Directorate General of Valuation letter dated 15.11.2018, confirmed a customs duty demand of ₹99,59,607/- under Section 28(4) of the Customs Act, 1962 with interest under Section 28AA, and imposed an equal penalty under Section 114A.
The appellant imported aluminium scrap under CTH 76020010 from various countries during the period 01.09.2018 to 31.08.2023. Following an investigation by the Special Intelligence & Investigation Branch (SIIB), the department alleged undervaluation of imports, contravention of Section 14 of the Customs Act read with Rule 11 of the Customs Valuation Rules, suppression of facts, and wilful evasion of customs duty. A show cause notice dated 21.11.2023 proposed rejection of the declared transaction value and recovery of differential duty under the extended period prescribed under Section 28(4).
