Gillette Goods Undervaluation Case: Proprietor's Confession of Fraudulent Invoices Shifts Burden of Proof Despite Procedural Violations

The dispute involved two containers of Gillette brand goods where CESTAT addressed issues of undervaluation. The tribunal found that the goods were not prohibited under Customs Act SS11, but there was clear mis-declaration of transaction value, as admitted by the proprietor of M/s Royal Trades who confessed to filing fraudulent invoices to evade duty. While this admission shifted the burden of proof to the appellant per SC precedent in United India Insurance, CESTAT determined that principles of natural justice were violated due to non-disclosure of essential documents in the Show Cause Notice. Though this procedural defect was curable, it necessitated remand. Accordingly, CESTAT disposed of the appeal by remanding the matter to the Original Authority for de novo adjudication. .....

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