ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 29.08.2025
CESTAT Chennai Accepts Declared Value and Sets Aside Confiscation and Penalty for LED Screen Imports
This Article has been written by Shri Ravi Shekhar Jha, Advocate based in New Delhi. The views expressed are based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.
In a landmark decision, the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Chennai, has delivered justice to M/s. Sureshkanna Video & Photo, a Chennai-based importer, by setting aside the impugned Order-in-Appeal passed by the Commissioner of Customs (Appeals-II). β This case highlights the importance of adhering to principles of natural justice and the procedural requirements under the Customs Valuation Rules.
Background of the Case
M/s. Sureshkanna Video & Photo imported LED screen components from China, declaring a value of Rs. β 19,59,313/- (US $42,441). β However, based on intelligence, the Special Intelligence and Investigation Branch (SIIB) alleged misdeclaration and undervaluation of the goods. β During a search of the proprietorβs premises, an unsigned draft contract was retrieved, which the authorities relied upon to reject the declared value and re-determine it at Rs. β 32,75,596/-. The goods were confiscated, and penalties were imposed under Sections 112(a) and 114AA of the Customs Act, 1962. β
The appellant challenged the findings, arguing that the unsigned contract was merely a draft and not the actual sales contract. β Despite repeated requests, the appellant was denied access to the unsigned contract and the opportunity for cross-examination, raising serious concerns about the violation of natural justice.
Source: CESTAT Chennai
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