Prathiba M. Singh, J. (Oral)

1. This hearing has been done through hybrid mode.

Background

2. The present appeals are filed by the Appellants- Sushil Aggarwal and Principal Commissioner of Customs (Import) New Delhi challenging the impugned order dated 30th April, 2024 passed by the Customs, Excise and Service Tax Appellate Tribunal (hereinafter ‘CESTAT’). The said order has also been challenged by the Appellant-Sushil Aggarwal in CUSAA 35/2025

as CESTAT dismissed its appeal vide Final Order No.55702-55704/2024 and upheld the penalties imposed on him under Sections 112 and 114 A of the Customs Act, 1962 (hereinafter ‘the Act’) as per the order in original dated 30th October, 2019.

3. The Principal Commissioner in CUSAA 38/2025 has filed an appeal against the order dated 30th April, 2024, as CESTAT allowed the appeal filed by the Respondent-Sunil Aidasani @ Vicky in the same final order by which the penalties imposed as per order in original dated 30th October, 2019 was set aside. The CESTAT also observed that a statement made by Mr. Bhalla under Section 108 of the Act will be relevant to prove the case as per Section 138B of the Act and thus the said person should be cross examined.

Brief Facts

4. The entire investigation emanated from the order in original passed on 30th October, 2019 passed by the Principal Commissioner of Customs (Import) wherein an investigation had been commenced against five firms which were seen to be involved in declaration of goods and import of prohibited goods. The said five firms are:

5. A detailed investigation was conducted and various persons were found to be involved in the said imports running into 19 containers without any Bill of Entry, except for two containers. After analysing the role of various parties, the order in original imposed penalties against various persons including the firms. The said order reads as under:

“A. In respect of M/s B.M. International, F-9, Sagar Pur West, New Delhi and its partners Shri Inderpreet Singh Bhalla and Shri Manish Kumar -

i) I hereby reject the declared value of the goods imported by them in Container No. HDMU6797172 (BE No. 9628771 DATED 19.06.2015) under Rule 12 of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 and redetermine the same as Rs 2,77,86,730/-, as detailed in Annexure- ‘A’ to the SCN, in terms of Rule 5 and Rule 9 (as applicable) of the said Valuation Rules, 2007 read with Section 14 of the Customs Act, 1962.

(ii) I determine the value of the goods imported by them in 2 (Two) Containers i.e. Container No. FCIU8930066 and Container No. PCIU8061867, as Rs 3,93,26,039/-, as detailed in Annexure- ‘B' and C to the SCN, in terms of Rule 5 and Rule 9 (as applicable) of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 read with Section 14 of the Customs Act, 1962.

iii) I order confiscation of all the goods imported in the said 3 (three) Containers i.e Container No. HDMU6797172, Container No. FCIU8930066 and Container No. PCIU8061867, having assessable value of Rs 6,71,12,770/- (including restricted items i.e. fire works (25.586 MT) valued at Rs. 5,11,72,000/-), as detailed in Annexure A, B & C' to the SCN, under Section 111 (d). (f). (i), (l) & (m) of the Customs Act, 1962. I give an option to them of redemption of these goods (other than the restricted items i.e. fire works (25.586 MT) valued at Rs. 5.11,72,