Per: M.M. PARTHIBAN

2.1 The brief facts of the case are that the appellants had imported varieties of bags, PVC leather cloth falling under Customs Tariff Item (CTI) 4202 2290, 5903 1090 and 5903 2090 of the First Schedule to the Customs Tariff Act, 1975 from China through the ports of Nhava Sheva, Mumbai. Directorate of Revenue Intelligence, Regional Unit, Surat (DRI) had developed an intelligence that the appellants have resorted to under valuation of imported goods with an intention to evade customs duty in connivance with overseas suppliers/manufacturers/commission agent. Detailed investigation was conducted by DRI including search of registered premises of the appellant company M/s Bhaijaan Stores on 11.04.2017 as well as at the premises of M/s Winsor Enterprises, Mumbai and documents in the form of print outs of e-mails were recovered which indicated that the appellants had mis-declared the actual value of the goods before the proper authorities of Customs at the time of seeking clearance of imported goods. Further, statements were recorded from various persons concerned.

2.2 On completion of investigation, DRI had issued Show Cause Notice (SCN) vide F. No. DRI/AZU/SRU-22/2017-Bhaijaan dated 23.01.2019 proposing for redetermination of assessable value under Section 14(1) of the Customs Act, 1962 and consequent demand of differential duty under Section 28(4) ibid along with proposals for confiscation of goods under sub-section (m) of Section 111 ibid and for imposition of penalties on the appellants under Section 112(a), 114A, 114AA ibid. Further, similar SCN was also issued separately vide F. No. DRI/AZU/SRU-22/2017 dated 04.09.2018 to M/s Winsor Enterprises involved in the present case.

2.3 The said SCN dated 23.01.2019 was adjudicated by the learned Joint Commissioner of Customs (Import-II), Mumbai-I confirming all the proposals made in the SCN by issuing the Order-in-Original dated 12.07.2019. In the said order the adjudicating authority has rejected the declared assessable value of Rs. 26,24,367/- in respect of 04 consignments imported through Mumbai port by the appellant company and re-determined the same at Rs. 1,83,47,408/-; confirmed differential customs duty amounting to Rs.46,29,020/- under Section 28(4) of the Customs Act, 1962 along with interest; appropriated the amount of Rs.8,75,000/- deposited by the appellant; confiscated the imported goods without imposing redemption fine, since the same was not physically available with the department under sub-section (m) of Section 111 ibid; imposed penalty equal to duty evaded at Rs. 46,29,020/- under Section 114A ibid on M/s. Bhaijaan Stotes. Besides, the adjudicating authority also imposed penalties of Rs.4,50,000/- each on the appellants Shri Junaid Kudia and Shri Sadik Kudia, respectively, under Section 112(a) ibid. Further, he had also imposed penalty of Rs.10,00,000/- on Shri Junaid Kudia under Section 114AA ibid.

2.4 With regard to three consignments of goods imported through JNCH, Nhava Sheva port, the order of the original authority dated 12.07.2019, has rejected the declared assessable value of Rs.50,03,145/- and re-determined the same at Rs.76,23,625/-; confirmed differential customs duty amounting to Rs.7,71,495/- under Section 28(4) ibid along with interest and also confiscated the impugned goods. The impugned order has imposed penalty of Rs. 7,71,495/- on the appellant company under Section 114A ibid; imposed penalty of Rs.75,000/- each on the appellant Shri Junaid Kudia and Shri Sadik Kudia, respectively, under Section 112(a) ibid. Further, he had also imposed penalty of Rs.1,75,000/- on Shri Junaid Kudia under Section 114AA ibid. Being dissatisfied with the above order of the original authority, the appellants have preferred appeals before the learned Commissioner of Customs (Appeals), who vide Order-in-Appeal dated 24.02.2023 (which is impugned herein), by upholding the order of the original authority has rejected the appeals filed by the appellants