Custom, Excise & Service Tax Tribunal
-Kolkata(Prev) vs S Krishna & Company on 29 July, 2025
IN THE CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL,
KOLKATA
REGIONAL BENCH - COURT NO.1
Customs Appeal No.75917 of 2023
Customs Appeal No.75918 of 2023
(Arising out of Order-in-Original No.4/Cus/CC(P)/WB/2021-22 dated 31.03.2022
passed by Commissioner of Customs (Preventive), Kolkata)
Commissioner of Customs (Preventive), Kolkata
(15/1, Stand Road, Kolkata-700001)
Appellant
VERSUS
Shri Krishan Goswami
M/s S. Krishna & Company
(6, Wood Street, 1st Floor, Room No.3,Kolkata-700016)
Respondent
WITH Customs Appeal No.75919 of 2023 (Arising out of Order-in-Original No.4/Cus/CC(P)/WB/2021-22 dated 31.03.2022 passed by Commissioner of Customs (Preventive), Kolkata) Commissioner of Customs (Preventive), Kolkata (15/1, Stand Road, Kolkata-700001) Appellant VERSUS Shri Narendra Lodaya, Director of M/s Pt.Gajamukha (B-13,Mahavirdham,Opp.Municipal Hospital,Dr.R.P.Road,Mumbai (W)-400080) Respondent APPERANCE :
Shri Faiz Ahmed, Authorized Representative for the Appellants Shri B.K.Singh, Advocate for the Respondent CORAM:
HON'BLE MR.ASHOK JINDAL, MEMBER (JUDICIAL) HON'BLE MR.K.ANPAZHAKAN, MEMBER (TECHNICAL) FINAL ORDER NO.77112-77114/2025 DATE OF HEARING : 29 JULY 2025 DATE OF DECISION : 29 JULY 2025 Per Ashok Jindal :
Revenue has filed these appeals against the impugned order.
2. The facts of the case are that a specific intelligence was received by the Directorate of Revenue Intelligence, Ahmedabad Zonal Unit, 2 Customs Appeal Nos.75917,75918 & 75919 of 2023 Ahmedabad indicating that Shri Krishna Goswami of Kolkata was indulged in fraudulent import of Betel Nut falling under CTH 080299 by mis-using the Import-Export Code (IEC) of M/s S Krishna & Co. Situated at 6, Wood Street, 1st floor, Room No 3, Kolkata-700016 (IEC 0293012113). The fraudulently imported Betel Nuts were mainly brought into the Country through Petrapole Land Customs Station. 2.1 Intelligence further indicated that the Betel Nuts so imported by him in the name of the said firms was actually of Indonesian origin but the same was simply routed through Bangladesh with an intent to evade appropriate Customs duty by mis-using the Notification No. 105/1999 as amended, which pertains to SAARC Preferential Trading Arrangement (SAPTA); that the Betel Nuts were first brought to Mongla EPZ (Bangladesh) based firms viz. Bangladesh Agro Growers & Producers Ltd., Tara Exim, Arecanut Growers and Processors Ltd., Jahan Processing Export Ltd. & Tara Exim Corporation all of Bangladesh etc. who were simply re-exporting such Betel Nut, without carrying out any process thereon, to various Indian importers/Indenters; that such Bangladesh based firms were obtaining Country of Origin certificates from appropriate authorities in Bangladesh by mis-representing the facts; that the Indian importers/indenters of such Betel Nut were paying commission to the Bangladesh based firms for their such assistance. 2.2 Intelligence also indicated that apart from mis-declaration of Country of Origin of such Betel Nuts, the same were grossly under- valued since the actual value thereof was in the range of USD 1400 to USD 1750 PMT but the same was declared in the range of USD 300 PMT to USD 450 PMT before the Indian Customs authorities. Intelligence also indicated that remittance of declared value was sent to the Bangladesh 3 Customs Appeal Nos.75917,75918 & 75919 of 2023 based firms through banking channels and the differential amount was remitted directly to Indonesian supplier (in advance) through illegal channels. Intelligence also indicated that Shri Narendra Lodaya, an Indonesia based broker was vital link between the India based importers/indenters, Indonesian suppliers and Bangladesh based accomplice firms.
2.3 Intelligence also indicated that the India based importers /indenters were normally interacting with Shri Narendra Lodaya in connection with quality, quantity, value, shipment schedule etc. in respect of such Betel Nut, through email correspondences; that the evidences containing actual Country of Origin of Betel Nut, its actual value, actual invoice /sales contract/proforma invoices, remittance of differential amount through illegal channels were exchanged between Shri Narendra Lodaya and the Indian importers through Email correspondences.
2.4 Based on the above intelligence, searches were carried out at the premises of (i) Sri Krishna Goswami, proprietor of M/s S. Krishna & Cơ situated in Kolkata and (ii) Shri Narendra Lodaya (Indonesian broker) at Mumbai. Incriminating documents including two mobile phones were seized during the search of the residence premises of Shri Narendra Lodaya. Two mobile phone of Black berry Make Model -9000 seized were sent for forensic analysis to Directorate of Forensic Science (DFS), Gujarat State, Gandhinagar.
2.5 Statement of Sri Kishan Goswami was recoreded on 26.08.2013 under section 108 of the CA, 1962. It appeared that Sri Kishan Goswami had committed offences punishable u/s 135 of the Customs 4 Customs Appeal Nos.75917,75918 & 75919 of 2023 Act, 1962. It also appeared that he knowingly involved in the evasion of Customs Duty by way of mis-declaration of value and mis-declaration of Country of Origin in the import documents of betelnuts and by mis- using SAPTA benefits under exempt Notfn. No.105/1999-Cus dated 10.08.1999. He was arrested on 26.08.2013 by DRI, Kolkata under section 104 of the Customs Act, 1962 and produced before the Court of Hon'ble Chief Magistrate Kolkata on 27.08.2013. He was enlarged on bail on 27.08.2013 by the Hon'ble Chief Metropolitan Magistrate Kolkata.
2.6 Statements of Shri Narendra Lodaya, were recorded under Section 108 of the Customs Act, 1962 on 14/02/2012, 16/02/2012, 17/02/2012, & 28/02/2012, wherein, he inter-alia stated that that he was doing trading of agro commodities like Betel Nut, Cloves, Gambier etc. from Indonesia; that he was basically acting as a broker for the importers of these Agro Products based at India, Pakistan, Bangladesh, Nepal etc. and exporters of these products based at Indonesia; he was getting a commission/ brokerage @ USD 10 PMT; that he used to receive enquiries from the buyers of agro products, that after finalization of the order over telephone, their exporters prepared Sales Contract (viz. SC) in the name of prospective buyers. In the said Sales Contract the details like Name of the overseas buyer, Sales Contract No. & Date, Description of goods, Rate PMT (CNF or FOB), Port of Import, Port of Shipment etc. were mentioned; that their Indonesia based exporters used to ship the export cargo (i.e. consignments of Betel Nuts) in the name of Bangladesh based importers, who in turn used to raise invoices in the name of importers of Betel Nuts in India; 5
Customs Appeal Nos.75917,75918 & 75919 of 2023 that he had facilitated the importers of Bangladesh and India by arranging invoices of low value.
2.7 From the investigation and evidence on record, statement of Sri Narendra Lodaya, statement of Sri Kishan Goswami and email contents available in the mailbox of Sri Lodaya and Sri DavalLapasiya, it is evident that Sri Kishan Goswami had imported betel nuts in the name of firm namely M/s S Krishna & Co, Kolkata. They had created the mechanism in Bangladesh to receive import cargo of betel nuts of Indonesian origin at Bangladesh and thereafter issuance of invoices in favour of the firm namely M/s S Krishna & Co showing the goods of Bangladesh origin and arranging country of origin from Bangladeshi authorities. The value of betel nuts was in range of USD 1200 to 1760 PMT but commercial invoices depicted the value in range of USD 500 to USD 700 PMT. No process of manufacturing was carried out at Bangladesh.
2.8 Accordingly, the show-cause notice dated 21.10.2016 was issued to the respondents. The ld.Commissioner dropped the proceedings against the respondents.
3. Aggrieved from the said order, the Revenue is before us on the ground that the Certificate of origin produced by the respondents along with the Bill of Entry did not indicate that the betel nut imported into India were not produced in Bangladesh and the same were imported into Bangladesh from third country origin. It is evident from the records available with the Department i.e. Certificate of origin, Bill of Lading, Contracts etc., the adjudicating authority ought to have considered these evidences. This case is made out after a highly professional and systematic investigation conducted by DRI. The 6 Customs Appeal Nos.75917,75918 & 75919 of 2023 investigation unearthed various incriminating documents from email correspondences between the exporter located in Indonesia, an Agent, Shri Narender Lodaya and the importers located in India. These correspondences are undeniable brought out the actual origin of the goods. It is undisputedly speaks about the actual value of the imported goods and the evasion of duty by way of under valuation in this case. Therefore, the impugned order is to be set aside.
4. Heard the ld.A.R. for the Revenue and the ld.Counsel for the respondents.
5. We find that the respondents have produced the Certificate of country of origin issued by the Bangladesh Authorities and it has not been disputed by the Authorities and it has also not been held that the said Certificate issued by the Bangladesh Authorities for country of origin, is fake or fabricated. In that circumstances, the ld.Adjudicating Authority has rightly dropped the proceedings against the respondents. In view of this, we do not find any infirmity in the impugned order and the same is upheld.
6. In the result, the appeals filed by the Revenue are dismissed.
(Operative part of the order was pronounced in the open court) (Ashok Jindal) Member (Judicial) (K.Anpazhakan) mm Member (Technical)