CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL NEW DELHI PRINCIPAL BENCH, COURT NO. 4 CUSTOMS APPEAL NO. 130 OF 2008 [Arising out of Order in Original No. 09/GS/CC/DRI/NCH/2007 dated 26.10.2007 passed by the Commissioner of Central Excise (Adjudication), New Delhi]

COMMISSIONER OF CUSTOMS ….APPELLANT (PREVENTIVE)-NEW DELHI New Customs House, Near IGI Airport, New Delhi Vs.

M/S AKAY CONES PVT. LTD. …..RESPONDENT

67/5328, IInd Floor, Regharpura, Hardhayan Singh Road, Karol Bagh, New Delhi-110005 WITH CUSTOMS APPEAL NO. 131 OF 2008 [Arising out of Order in Original No. 09/GS/CC/DRI/NCH/2007 dated 26.10.2007 passed by the Commissioner of Central Excise (Adjudication), New Delhi]

COMMISSIONER OF CUSTOMS ….APPELLANT (PREVENTIVE)-NEW DELHI New Customs House, Near IGI Airport, New Delhi Vs.

M/S INTRADE IMPEX PVT LTD. …..RESPONDENT

67/5328, IInd Floor, Regharpura, Hardhayan Singh Road, Karol Bagh, New Delhi-110005 Appearance:

Present for the Appellant : Shri Nagendra Yadav, Authorised Representative Present for the Respondent: None CORAM:

HON'BLE DR. RACHNA GUPTA, MEMBER (JUDICIAL)

HON'BLE MR. P.V. SUBBA RAO, MEMBER ( TECHNICAL )

FINAL ORDER NO’S. 50877-50878 /2025 DATE OF HEARING : 12/03/2025 DATE OF DECISION :06/06/2025 P.V. SUBBA RAO

1. Revenue filed these two appeals to assail the Order in Original dated 26 October 2007 passed by the Commissioner (Adjudication) in which he rejected the transaction values of the goods declared by the respondents, re-determined the values and confirmed the demand of duty with interest and imposed penalties. However, with respect to the seized goods, he confiscated those goods which were available and imposed redemption fine but did not impose redemption fine or confiscated those goods which were seized and handed over to the respondents for safe custody under supardaginama but which were found missing while in the custody of the respondents. The relevant portion of the impugned order is as follows:

“(xxi) I hold 825 rolls measuring 42718 meters of Printed Flock Fabrics having actual assessable value of Rs. 57,54,553/- (EMV Rs.96,11,550/-) seized from the godown premises of M/s Intrade Impex Pvt. Ltd. I M/s Akay Cones Pvt. Ltd. located at A-96, Mayapuri Industrial Area, Phase-II, New Delhi and 1541 rolls measuring 76250 meters of Printed Flock Fabrics (seized from the godown located at Plot No.93, Lakhmi Piayo, Kundli, Haryana) having actual assessable value of Rs. 1,16,61,713/- (EMV Rs.1,69,76,250/-) liable to confiscation under Section 111 (d) of the Customs Act, 1962. As only 683 rolls are available for confiscation, I confiscate the same under Section 111(d) of the Customs Act, 1962. However, I give an option to M/s Intrade Impex Pvt. Ltd. / M/s Akay Cones Pvt. Ltd., New Delhi and Shri H. M. Prabhakar to redeem the said goods on payment of Redemption Fine of Rs. 10,00,000/- and also on payment of appropriate Customs duty as well as interest thereon. As regards remaining 1683 rolls, no order confiscating the same can be passed at this stage because the goods are not available for confiscation. I demand duty leviable thereon on the basis of the above assessable values from them with interest thereon under section 28(1) proviso read with 28AB of the Customs Act, 1962.”

2. The facts which led to the issue of the impugned order are that the Directorate of Revenue Intelligence, DRI received intelligence that M/s Akay Cones Pvt Ltd. and M/s Intrade Impex Pvt Ltd., the respondents, owned and controlled by Sh. H.M. Prabhakar were indulging in massive customs duty evasion. According to the information, the respondent had imported fabrics manufactured by M/s Microfibre Inc., M/s Culp Inc. USA and M/s Microfibres Belgium by obtaining invoices for almost 1/3 of the value from traders of Singapore and Thailand. Investigations were conducted, the godowns of the respondents were searched under panchnamas and the statements of Shri H.K. Prabhakar and others were recorded. Investigations revealed that while the cost of the fa