ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 13.06.2025
CESTAT Mumbai set aside the Confiscation of diamonds and duty demand on capital goods
In a major relief to M/s Neysa Jewellery Ltd. (formerly Shreeji Jewellery Ltd.) and its associated individuals, the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Mumbai has set aside the confiscation, customs duty demand, and penalties levied by the Commissioner of Customs (General)-V, Mumbai. The ruling relates to alleged substitution and shortage of imported diamonds under the Export Oriented Unit (EOU) operations in SEEPZ, Mumbai.
Background of the Case
The case dates back to March 1998, when Customs officials intercepted an autorickshaw leaving the SEEPZ premises and found electronic goods. This led to a detailed investigation at the premises of Neysa Jewellery Ltd., revealing an alleged shortage of 89.15 carats of imported diamonds and a seizure of 1095.48 carats, allegedly substituted to mask the shortfall. Customs initiated proceedings based on suspicion of diversion and misuse of duty-free imports. Several show cause notices, adjudication orders, and remand proceedings followed for over two decades, culminating in the recent 2023 decision.
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 Mumbai
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