Indian Kanoon - Search engine for Indian Law

16. I also observe that prior to May 2019, the assessee were importing Calcium Phosphate under CTH 28352690. In the instant 6 bills of entry, they declared the product as Apatite (Gr) Calcium Phosphate and classified the same under CTH 25102030 and claimed concessional duty. After the investigation began, they again, without any rhyme or reason, started filing bills of entry declaring the product as Calcium Phosphate and classifying under CTH 28352690. For hiding the act of misdeclaration of the goods, they have created false documents with the assistance of their suppliers. They also approached and obtained a favourable analysis from the CSIR, Khurja. This clearly shows their malafide intention of manipulating the documents when investigations were initiated against them. Even prior to initiation of investigations, they have deliberately and knowingly misdeclared Calcium Phosphate as Apatite (Gr) Calcium Phosphate classified the same under CTH 25102030 and claimed concessional duty with an intent to evade payment of duty.

31. Penalty under section 114A of the Customs Act has also been correctly imposed upon the appellant as the appellant had misdeclared the description of the goods deliberately with an intent to avail concessional rate of duty and thereby to evade payment of duty.

32. The impugned order has also given cogent reasons for imposing penalty on Vikas Agarwal, Director of the appellant under section 112(a)(ii) of the Customs Act. As would be seen from the impugned order, the relevant portion of which have been reproduced above, the email communications show that Vikas Agarwal manipulated the documents to be submitted to the customs authorities intentionally and obtained documents from the supplier to suit his version. Therefore, imposition of penalty on him under section 114AA of the Customs Act is justified.

33. The imposition of penalty upon Dharam Chand Sahu, Manager of the appellant under section 112(a)(ii) of the Customs Act is also justified as it has been found from the email communications that he helped Vikas Agarwal in manipulating the documents.

34. There is, therefore, no error in the impugned order. All the three appeals are, accordingly, dismissed.

(Order pronounced on 27.04.2026) (JUSTICE DILIP GUPTA) PRESIDENT (S.V. SINGH) MEMBER (TECHNICAL) Golay