2014 (5) TMI 752 - AT - Customs

Undervaluation of goods - Mis declaration of quantity of goods - Held that - no bill of entry has been filed by any of the appellants before us and in the IGM no reference of any of the appellants have been made but charges made against the appellant are that they undervalued the goods and misdeclared the quantity of goods. Unless and until bill of entry is filed and quantity and value is declared, allegation of misdeclaration of value and quantity is not sustainable. But in the impugned order demands have been confirmed against the appellant namely Manisha Karia and Vishal Dedhia that they have misdeclared the value and quantity of goods. We find that the observation of the adjudicating authority is without application of mind - As there is no declaration in the IGM any of the appellant s name; further no bill of entry or bills of entry has been filed by any of the appellants, therefore, the allegation of undervaluation or misdeclaration of quantity is not sustainable - Decided in favour of assessee.

Summary

Issues: Allegation of undervaluation and misdeclaration of goods without bill of entry and declaration in the IGM.

In this judgment by the Appellate Tribunal CESTAT MUMBAI, the appellants appealed against an order alleging undervaluation and misdeclaration of goods without the filing of any bill of entry by them. The show cause notice implicated importers and CHAs, with penalties imposed on them. The impugned containers were under different names than the appellants'. The tribunal noted the unique case where no bill of entry was filed by the appellants, and no reference to them was in the IGM. The charges of undervaluation and misdeclaration were found unsustainable without a bill of entry and proper declaration of quantity and value. The tribunal criticized the adjudicating authority for lacking proper consideration in confirming the demands against the appellants.

The tribunal decided to waive the pre-deposit requirement of penalties against the appellants due to the circumstances and proceeded with the appeals for final disposal. Since there was no declaration in the IGM under any appellant's name and no bill of entry filed by them, the allegations of undervaluation and misdeclaration of quantity were deemed unsustainable. Consequently, the impugned order was set aside, and the appeals were allowed with consequential relief. The stay application was also disposed of accordingly. The judgment emphasized the importance of proper documentation and declaration in import transactions to substantiate allegations of undervaluation and misdeclaration.