ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 14.06.2025
CESTAT Mumbai Quashes βΉ2.78 Cr Customs Duty Demand on Road Machinery Import
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai Bench has quashed the duty demand of βΉ2.78 Crores, penalties, and confiscation order against M/s Villayati Ram Mittal and its Director. The Tribunal held that the company had not violated the conditions of Serial No. 230 of Notification No. 21/2002-Cus dated 01.03.2002, which allowed exemption from customs duty on road construction equipment.
Background of the Case
M/s Villayati Ram Mittal had imported two piling rigs under Bill of Entry dated 10.07.2003, claiming nil customs duty under Sl. No. 230 of the said notification. The exemption was subject to conditions listed in Condition No. 40, which required:
- The importer to be a contractor for road construction awarded by NHAI or PWD;
- The imported goods to be used exclusively for road construction;
- No sale or disposal of the goods for five years from importation.
The rigs were later found in possession of third parties (M/s QUIPPO and M/s Bhumi Developers), leading to a show cause notice dated 13.05.2008 alleging violation of exemption conditions.
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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