The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi opted to remand a matter regarding undervaluation of Television Panels in the import Bill of Entry (BoE), calling for reverification of the matter in light of available contemporaneous import data.
The decision was rendered by CESTAT while entertaining a Custom Appeal by M/s. Param Electronics against the Respondent Commissioner of Customs (Import). The Appellant-Assessee is engaged in the business of importing LED TV panels and had filed a BoE for the clearance of goods declared as ‘Open Cells for 43” and 49” LED TV Panels’ with ‘T-Con Board (Brand LG)’ of Chinese origin for a declared value of Rs.50,55,696/-.
Upon examination, the Authorities were of the opinion that the Appellant had illicitly undervalued the goods, taking into account contemporaneous import data. The Authorities further discovered that the Importer had misquoted the quantity of goods, having imported 3 pieces more than specified in the BoE; consequently, all the goods were seized for investigation.
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For reference, data from M/s. LG Electronics India Pvt. Ltd revealed that similar 49” and 46” TV panels had been imported at much higher values of 104.20 USD and 96.4 USD respectively. Prem Narayan Gupta, proprietor of the appellant company in his statement recorded on 14.12.2018 agreed to pay the requisite duty as per the pricing shown by M/s. LG Electronics India Pvt. Ltd. for their imported panels.
Subsequently, the adjudicating authority reassessed the value of the imported goods at Rs.1,11,25,370/- as against the declared value of Rs.50,55,695/- citing mis-declaration in terms of the quantity and value of the goods and confiscated them according to Sections 111(l) and 111(m) of the Customs Act, 1962, while imposing penalty under Section 112(a)(ii) of the Act.
The two-member Bench of Binu Tamta, Member (Judicial) and P.V. Subba Rao, Member (Technical) observed that the pricing data regarding contemporary imports may not be squarely applicable to the Appellant’s case and queried whether the imported goods were similar or identical in any manner.
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Further noting that the Appellant had imported both ‘LG Brand’ panels as well as unbranded panels, the CESTAT Bench remanded the matter to the original authority to consider the contemporaneous import data adduced by the Appellant and to authenticate the relevance of the records and decide the matter in accordance with law.
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