CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL CHENNAI REGIONAL BENCH – COURT No. III Customs Appeal No. 41070 of 2016 (Arising out of Order-in-Original No. 45540/2016 dated 29.02.2016 passed by Commissioner of Customs, No. 60, Custom House, Rajaji Salai, Chennai – 600 001)

M/s. Sleek Corporation ...Appellant No. 14, K.V. Temple Street, Valli Complex, 1^st Floor, Sutanpet Cross, Bangalore – 560 053.

Versus Commissioner of Customs ...Respondent Chennai II Commissionerate, No. 60, Custom House, Rajaji Salai, Chennai – 600 001.

With Customs Appeal No. 41071 of 2016 (Arising out of Order-in-Original No. 45540/2016 dated 29.02.2016 passed by Commissioner of Customs, No. 60, Custom House, Rajaji Salai, Chennai – 600 001)

Mr. Mahesh Agarwal Partner ...Appellant M/s. Sleek Corporation, No. 14, K.V. Temple Street, Valli Complex, 1^st Floor, Sutanpet Cross, Bangalore – 560 053.

Versus Commissioner of Customs ...Respondent Chennai II Commissionerate, No. 60, Custom House, Rajaji Salai, Chennai – 600 001.

And Customs Appeal No. 41072 of 2016 (Arising out of Order-in-Original No. 45540/2016 dated 29.02.2016 passed by Commissioner of Customs, No. 60, Custom House, Rajaji Salai, Chennai – 600 001)

Mr. Viresh Kothari ...Appellant M/s. Sleek Corporation, No. 14, K.V. Temple Street, Valli Complex, 1^st Floor, Sutanpet Cross, Bangalore – 560 053.

Versus Commissioner of Customs ...Respondent Chennai II Commissionerate, No. 60, Custom House, Rajaji Salai, Chennai – 600 001.

APPEARANCE:

For the Appellants : Mr. L.S. Karthikeyan, Advocate For the Respondent : Ms. Anandalakshmi Ganeshram, Authorised Representative CORAM:

HON’BLE MR. P. DINESHA, MEMBER (JUDICIAL)

HON’BLE MR. VASA SESHAGIRI RAO, MEMBER (TECHNICAL)

FINAL ORDER Nos. 40361-40363 / 2026 DATE OF HEARING : 29.09.2025 DATE OF DECISION : 13.03.2026 Per Mr. VASA SESHAGIRI RAO The present proceedings comprise of three appeals filed before this Tribunal, one by M/s. Sleek Corporation (the importer-appellant) and two by its partners, Shri Mahesh Agarwal and Shri Viresh Kothari, upon whom personal penalties have been imposed. All the three appeals arise out of the same Order-in-Original No. 45540/2016 dated 09.03.2016 passed by the Commissioner of Customs- II, Chennai (hereinafter referred to as the impugned order). As the issues involved, facts, evidence, and findings are common and interlinked, all the appeals as tabulated below are being taken up together and are being disposed of by this common order.

2.1 The Appellant-Importer is a partnership firm engaged in the import of industrial sewing machines, their parts and accessories, and rotary hooks, during the period from 01.06.2010 to 30.11.2014, through Chennai Seaport. The firm is represented by its partners Shri Mahesh Agarwal and Shri Viresh Kothari, who are also co-appellants as shown in the Table above.

2.2 Acting on specific intelligence regarding large- scale undervaluation and mis-declaration, officers of the Directorate of Revenue Intelligence (DRI), Bangalore, conducted searches on 01.12.2014 at the business and residential premises of the appellants. Various documents were seized, including proforma invoices, email correspondence, blank signed letterheads of overseas suppliers, a diary containing pricing details, and electronic records.

2.3 Statements of both the partners were recorded under Section 108 of the Customs Act, 1962, wherein they admitted, inter alia, that the imports were systematically undervalued, that two sets of invoices were prepared one reflecting the actual value and another for customs clearance and that differential amounts were paid through non-banking channels.

2.4 A Show Cause Notice dated 28.05.2015 was issued proposing rejection of declared transaction value under Rule 12 of the Customs Valuation Rules, 2007, re- determination of assessable value at ₹22,06,28,290/- against declared value of ₹11,20,05,936/-, demand of differential duty of ₹1,71,26,244/- with interest, confiscation of seized and already cleared goods under