ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 22.04.2025
CESTAT New Delhi Quashes Customs Order Due to Inordinate Delay in Adjudication
The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Delhi Principal Bench, has set aside a 2023 customs adjudication order issued against Innovale Investment Pte Ltd, ruling that the inordinate delay of nearly 10 years in adjudicating a show cause notice rendered the proceedings unsustainable in law.
Case Overview:
- The dispute pertained to the import of an Embraer Phenom 100 aircraft under Bill of Entry No. 269117 dated 24.06.2011.
- The aircraft was provisionally released against a bond and bank guarantee of โน4.10 crore.
- Customs authorities alleged misuse of exemption under Notification No. 01/2002-Cus as amended by Notification 01/2011-Cus, and issued a show cause notice on 31.07.2013.
- On 19.01.2023, the Principal Commissioner of Customs ordered:
- Confiscation of the aircraft under Section 111(o) of the Customs Act.
- Redemption fine of โน1 crore under Section 125.
- Penalty of โน25 lakh under Section 112(a).
This Article has been written by Shri Ravi Shekhar Jha, Advocate Delhi High Court based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.
Source: CESTAT New Delhi
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