2025-VIL-1870-CESTAT-CHE-CU
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CUSTOMS CESTAT Cases

Customs – Section 138B of Customs Act, 1962 – Import of self-adhesive tapes – Rejection of declared value – Investigation revealed that certain importers have imported self-adhesive tapes by resorting to undervaluation with view to evade payment of customs duties – Investigation culminated in separate show cause notices being issued to Appellants/proprietary firm and its power of attorney holder in respect of their imports – After due process of law, Adjudicating Authority rejected declared values and after re-determining the same, confirmed demand of differential duty – Whether rejection of declared transaction value is sustainable – HELD – When undervaluation is alleged, Department has to prove it by evidence or information about comparable imports. Casting suspicion on invoice produced by importer is not sufficient to reject it as evidence of value of imported goods. If charge of undervaluation cannot be supported either by evidence or information about comparable imports, benefit of doubt must go to importer. As procedure prescribed under Section 138B of the Act has not been adhered to, statements being denuded of their relevance cannot be relied upon in any manner. Adoption of values declared in proforma invoices/insurance documents, even dehors the disputed statement, cannot be made the basis for rejection of declared value – Appeals allowed - Demand of differential duty – Whether demand made on power of attorney holder is legally tenable or not – HELD – Demand had been made jointly on proprietary firm and its power of attorney holder. There is no finding that power of attorney holder has held himself out to be importer or he is the owner and he had in such capacity filed bill of entry jointly with proprietary firm. In absence of any notice addressed to power of attorney holder setting out that he is being made liable on ground that department cannot recover duty from owner or importer, demand made on power of attorney holder is wholly unsustainable. Impugned orders in original are set aside.
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