Commissioner Of Customs Vs Hanuman Prasad & Sons (CESTAT Delhi)

CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL NEW DELHI
PRINCIPAL BENCH

CUSTOMS APPEAL NO. 51601 OF 2019

(Arising out of Order–in-Appeal No. CC(A)/CUS/D-II/ICD-PPG/SONEPAT/95-121/2019-20 dated 26.04.2019 passed by Commissioner of Customs (Appeals), New Customs House, Near IGI Airport, New Delhi-110037)

Commissioner of Customs .....Appellant
ICD Patparganj
Delhi - 110096

Versus

M/s Hanuman Prasad & Sons .....Respondent
455, Khera Kalan
New Delhi – 110 082.

APPEARANCE:
Shri Sunil Kumar and Shri Rakesh Kumar, Authorized Representatives for the Department
Shri B.L. Narasimhan, Shri Rachit Jain and Shri Ashwani Bhatia, Advocates for the Respondent

CORAM : HON’BLE MR. JUSTICE DILIP GUPTA, PRESIDENT
HON’BLE MR. P.V. SUBBA RAO, MEMBER (TECHNICAL)

Date of Hearing/Decision: October 20, 2020

FINAL ORDER No. 51584-51619 / 2020

JUSTICE DILIP GUPTA :

M/s Hanuman Prasad and Sons1 and M/s Niraj Silk Mills2 had imported various kinds of polyester knitted fabric of different weights and colours3 and had submitted 27 and 9 Bills of Entry respectively, declaring the value of the goods @ 1.2 USD per kg. The Assessing Officer enhanced the assessable value, on the basis of contemporaneous imports data and which value was also accepted by Hanuman Prasad and Niraj Silk in writing, to 1.80 USD per kg for Hanuman Prasad and 1.94 USD per kg Niraj Silk. However, appeals were filed against each of the Bills of Entry by Hanuman Prasad and Niraj Silk before the Commissioner of Customs (Appeals)4, who by an order dated April 26, 2019 allowed all the 27 appeals filed by Hanuman Prasad and by an order dated May 08, 2019 allowed all the 9 appeals filed by Niraj Silk. The Department has, accordingly, filed these 36 appeals to assail the orders passed by the Commissioner (Appeals). 

2. The records indicate that Hanuman Prasad had submitted 27 Bills of Entry declaring the value of the goods at 1.2 USD per kg and Niraj Silk had submitted 9 Bills of Entry declaring the value of the goods at 1.2 USD per kg. The Assessing Officer believed that he had reason to doubt the accuracy of the value so declared, since it was lesser than the contemporaneous export data. On being confronted with such data, both Hanuman Prasad and Niraj Silk submitted identical letters in connection with the Bills of Entry. Hanuman Prasad specifically stated that though it had declared the value of the goods at 1.2 USD per kg but on contemporaneous data having been shown, it agrees for enhancement of the value to 1.80 USD per kg and that it did not want any show cause notice to be issued to it or personal hearing to be provided, nor did it want any speaking order to be passed on the aforesaid Bills of Entry. It further stated that it was voluntarily relinquishing the rights provided to it under sections 124 and 17(5) of the Customs Act, 19625. The letter written by Niraj Silk is identically worded, except for agreeing to the enhancement of the value of the declared goods to 1.94 USD per kg.

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