ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 09.06.2025
CESTAT Delhi Sets Aside Penalty in DEPB Export Valuation
The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), New Delhi, has quashed the βΉ10 lakh penalty imposed on him under Section 114 of the Customs Act, 1962. The penalty stemmed from alleged involvement in a major export overvaluation case under the DEPB scheme.
Background of the Case
The case revolves around alleged fraudulent exports of CD-ROMs by M/s. Sundram Export Pvt. Ltd. and M/s. Netcompware Pvt. Ltd., who were accused of inflating Freight on Board (FOB) value to wrongfully avail DEPB (Duty Entitlement Pass Book) benefits.
- Allegation: Exports were declared at an inflated rate of $19 per CD-ROM, far exceeding actual value.
- Objective: To fraudulently earn DEPB scrips, later used to import goods duty-free.
- Appellantβs Alleged Role: Accused of orchestrating the export of CD-ROMs and re-importation under a new entity, M/s. Arvind International.
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 Delhi
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