CESTAT Kolkata ruled that confiscation and penalty were unjustified when ownership was already relinquished and misdeclaration wasn’t proven

ALO Law Office- IDT Tax I Arbitration I Litigation

Date: 06.05.2025

CESTAT Kolkata ruled that confiscation and penalty were unjustified when ownership was already relinquished and misdeclaration wasn’t proven

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Kolkata Bench delivered a significant ruling in favour of multiple importers, including Appellants, Kritika Impex, Kushagra Shipping Agency, Ganpati Roadways, and Bhawani Cargo Movers, who were accused of misdeclaration of goods and liable for penalties and duty demand.

Case Background

• Date of Bill of Entry: 11 September 2021 (No. 5405619) and earlier on 31 August 2021 (No. 5257900)
• The importers had filed Bills of Entry based on shipping documents received from the foreign seller.
• Upon learning on 18 September 2021 that the container had been wrongly loaded, the importers promptly notified Customs and declared relinquishment of goods under Section 23 of the Customs Act, 1962.
• A 100% examination revealed the presence of white pepper and white wood powder.
• Despite relinquishing rights and disclosing the issue, the authorities issued Show Cause Notices alleging misdeclaration, invoking penalties and seeking confiscation.

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 Kolkata

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