The Mumbai bench of Customs, Excise & Service Tax Appellate Tribunal (CESTAT) has held that an order of confiscation under section 111(m) of customs Act 1962 along with the consequential penalties under section 112 of Customs Act, 1962 can’t be invoked without corroborating evidence.
The appellant was represented by Shri T Chirag Shetty and the respondent was represented by Shri Manoj Kumar.
Appeal filed by Mr Karim Jaria challenged the proceedings pertaining to nine ‘used cranes’ of varying specifications imported between 11th February 2005 and 12th February 2007 by M/s Crown Lifters and five consignments of ‘used cranes’ between 23rd January 2008 and 23rd February 2010 and ₹ 1,50,00,000 had been voluntarily deposited towards differential duty. Tribunal had not found any such proposal in the show cause notice which has only taken notice of the deposit made voluntarily and held the order of the adjudicating authority must be set aside for having travelled beyond the proposal in the show cause notice.
Further, the tribunal viewed that the ‘acceptance’ of the voluntary payment is beyond the framework of the proceedings as determined by the proposals in the show cause notice and there has been no ascertainment of the actual purchase price of each of the nine ‘used cranes’. The remand order is found to violation of the principles of natural justice, in the absence of the cross-examination.
The Tribunal observed that with the absence of any evidence to support the allegation of undervaluation, the redetermination of assessable value by resort to rule 3 of Customs Valuation (Determination of Price of Imported Goods) Rules, 2007 is not in accordance with the law.
The Coram of Ajay Sharma, Member (Judicial) and C J Mathew, Member (Technical) set aside the order for confiscation of the ‘used cranes’ imported by both entities under section 111 (m) of Customs Act, 1962 along with the consequential penalties under section 112 of Customs Act, 1962 by allowing the appeal. The Tribunal set aside the penalties imposed on the noticees under section 114AA of Customs Act, 1962.
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