9911796707
|
Home
Issues: Valuation of goods under the DEEC Scheme, Penalty imposition based on under-invoicing instead of misdeclaration
Valuation Issue Analysis: The case involved an appeal against an order of adjudication passed by the Commissioner of Customs regarding three Bills of Entry filed under the DEEC Scheme for duty-free clearance of goods declared as "Reinforcement Tapes." The department alleged misdeclaration against the importers and proposed various actions, including confiscation of goods, penalty imposition, value enhancement, and recovery of duty. The Commissioner valued the goods based on a previous order without citing it in the show cause notice, leading to a challenge by the appellants. The Tribunal found that the valuation based on the earlier order, not mentioned in the notice, was unsustainable. The appellants were not informed of the intention to determine the assessable value based on the previous order, rendering the valuation invalid. The Tribunal concluded that the valuation determined by the Commissioner was not sustainable, ultimately setting aside the impugned order. Penalty Imposition Issue Analysis: Regarding the penalty imposition, the appellants contested the penalty based on under-invoicing, as the show cause notice focused on misdeclaration. The Commissioner dropped the misdeclaration allegation but imposed a penalty for under-invoicing, which was beyond the scope of the notice. The Tribunal noted that the penalty was imposed on a ground not included in the show cause notice, making it unsustainable. As the department proposed to penalize the appellants for misdeclaration, the penalty based on under-invoicing was deemed unjustified. Consequently, the Tribunal set aside the penalty as well, along with the impugned order. The appeals were allowed with consequential reliefs, highlighting the discrepancies in the penalty imposition based on under-invoicing instead of misdeclaration as initially alleged.
|
