CESTAT modified the customs assessment order involving ...

Customs Valuation Dispute: Underreported Import Equipment Value Resolved with Reduced Penalty Under Sections 112(ii) and 114AA

June 5, 2025

Case Laws     Customs     AT

CESTAT modified the customs assessment order involving undervaluation of imported networking equipment. The tribunal found the importer's initial declaration of USD 100 versus actual value of USD 64,496.42 was due to inter-office correspondence error, not intentional duty evasion. While confirming penalty under Section 112(ii), the tribunal set aside penalty under Section 114AA and reduced the redemption fine from Rs. 10,00,000 to Rs. 5,00,000, considering the importer's immediate disclosure and cooperative approach. The appeal was disposed of with partial relief to the appellant, balancing procedural compliance with substantive justice.

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