IN THE CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL EASTERN ZONAL BENCH : KOLKATA REGIONAL BENCH – COURT NO. 1 (Arising out of Order-in-Original No. KOL/CUS/Pr.COMMISSIONER/AP/ADMN/10/2021 dated 31.03.2022 passed by the Principal Commissioner of Customs (Airport &

A.C.C.), Custom House, 15/1, Strand Road, Kolkata – 700 001)

Shri Sajal Das : Appellant S/o. Shri Satya Ranjan Das, Residing at: 68/38, Amarpally, Jessore Road, South Dum Dum (M)

P.O.: Motijheel, P.S.: Dum Dum, District: North 24 Parganas, Kolkata – 700 074 VERSUS Principal Commissioner of Customs : Respondent Airport & Air Cargo Complex Commissionerate, Custom House, 15/1, Strand Road, Kolkata – 700 001 APPEARANCE:

Dr. S.K. Mohapatra, Advocate, for the Appellant Shri Faiz Ahmed, Authorized Representative, for the Respondent CORAM:

HON’BLE SHRI K. ANPAZHAKAN, MEMBER (TECHNICAL)

FINAL ORDER NO. 76628 / 2025 DATE OF HEARING / DECISION: 23.06.2025

ORDER:

The instant appeal has been filed against the Order-in-Original No. KOL/CUS/ Pr. COMMISSIONER/AP/ADMN/10/2021 dated 31.03.2022, passed by the Principal Commissioner of Customs, Airport & Air Cargo Complex Commissionerate, Custom House, Kolkata whereby penalties of Rs. 5 lakh each has been imposed upon the appellant under Sections 112(a)(i) and 112(b)(i)

of the Customs Act, 1962.

2. The brief facts of the case are that on the basis of specific information, the Directorate of Revenue Intelligence, Kolkata Zonal Unit, intercepted one consignment imported vide Bill of Entry No. 9959894, dated 05.06.2017. In respect of the said Bill of Entry, a query was raised in the EDI system to submit documents for changing the CTH of the item No. 1 of the Invoice (i.e. flasks) from 39263033 to 96170019, raising the unit price of the flasks from USD 2.75 to USD 5 and raising the unit price of the item No. 2 (i.e. Pampers) from USD 5 to USD 6. However, no reply to the query was received and neither the goods were assessed nor duty was paid, nor goods were examined; no out of charge (pass out of Customs control under Section 47 of the Act) was given in respect of the impugned consignment when the consignments were intercepted by DRI, KZU.

2.1. In respect of the impugned consignment, a Panchnama was drawn on 07.06.2017 and as against the declared description of 16 Pcs Flasks priced at USD 2.75 per piece and 600 Pkt baby Pampers priced at USD 5 per Pkt in 40 master cartons of declared value of Rs. 2,42,893/-, the inventory revealed goods to be mis-declared. Out of total 40 cartons, 32 cartons were found to contain 5,04,000 pieces of 85 cm (King size) sticks Indonesian cigarettes of “Gudang Garam” brand and the rest eight (8) cartons contained 8753 pcs of baby diapers and 16 flasks which were aggregately valued at Rs.51,31,209/-. The said goods were seized under Section 110 of the Customs Act and the copy of the seizure list and the inventory were handed over to the representative of the Customs Broker.

2.2. On completion of investigation, a Show Cause Notice was issued by the DRI on 04.12.2017, proposing to confiscate the goods under Section 111 and Section 119 of the Customs Act, 1962 for the alleged violation of the terms of Cigarettes and other Tobacco Products (Packaging and Labelling) Amendment Rules, 2014. Penalty has also been proposed on the appellant under Section 112(a) and

112(b) of the Customs Act, 1962.

2.3. On adjudication, the ld. adjudicating authority, vide the impugned order, has confiscated the impugned goods and imposed penalty of Rs. 5 lakhs each under the Sections 112(a)(i) and 112(b)(i) of the Act on the appellant.

2.4. Aggrieved by the imposition of penalties on him, the appellant has filed this appeal.

3. The Ld. Counsel appearing on behalf of the appellant submitted that the impugned Show Cause Notice is erroneous on the facts and in law, since he did not perform any work in relation to the importation of the impugned consignments. He highlighted the fact that the impugned order reveals that a nexus was created among Mayur M