2025-VIL-610-CESTAT-CHE-CU
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CUSTOMS CESTAT Cases

Customs - Valuation, Extended Period under Section 28(4), EPCG Scheme Benefit, Confiscation of Goods - The appellant-importer had imported a consignment of old and used machinery and equipment under the concessional EPCG scheme on a high seas sale basis from its group company. The goods were originally supplied by M/s. The Boeing Company, Boeing Aerostructures Australia (BAA) - Customs authorities challenged the declared value of the goods and redetermined the value under Rule 12 of the Customs Valuation Rules, 2007. They also denied the benefit of the concessional EPCG scheme - Whether the value appraised under Section 46 of the Customs Act, 1962 and Rule 9 of the Customs Valuation Rules, 2007 on the basis of the Chartered Engineer's appraisement certificate can be rejected under Rule 12 of the Valuation Rules - HELD - The rejection of the value declared as appraised by the Chartered Engineer cannot be faulted. The Chartered Engineer's certificate was found to be not reliable and was discredited by the revenue authorities. The onus of proof shifted to the appellant to defend the value declared in the Bill of Entry, which the appellant failed to do - any value that is ascertained as per the Customs Act and Rules framed there under must include in addition to the price, all costs incurred towards the transport of the imported goods to the place of importation. Loading, unloading and handling charges associated with the delivery of the imported goods at the place of importation and the cost of insurance - The revenue authorities were justified in redetermining the value under Rule 12 of the Valuation Rules - The impugned order is upheld, except for the modifications that the duty needs to be reworked out and demanded by allowing the benefit of Notification No. 103/2009-Cus dated 11.9.2009. The confiscation of the goods and imposition of redemption fine were set aside. The personal penalty under Section 114AA is deleted, while the penalty under Section 112(a) was sustained – The appeal is partly allowed - Whether the extended period under Section 28(4) of the Customs Act, 1962 can be invoked in cases of "first check" assessment - HELD - When facts are concealed and not fully disclosed, it amounts to suppression of information. Deliberate concealment or willful non-disclosure amounts to suppression of information, which allows the invocation of the extended period under Section 28(4). In the present case, the appellant failed to discharge the onus of proving that it did not commit a blame-worthy conduct, and the revenue authorities were justified in invoking Section 28(4) - Whether the benefit of the EPCG license can be denied without its cancellation by the DGFT, the issuing authority - HELD - The exemption under the EPCG scheme notification is conditional on the goods being covered by a valid authorization issued under the EPCG Scheme. If the authorization is valid, the benefit of the notification cannot be denied on the ground that the value of the goods declared to the Customs authorities was fraudulent. The Customs authorities should have taken up the issue of the fraudulent value with the DGFT for cancellation of the authorization, and if the cancellation was done, the notification benefit could have been denied.
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