ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 16.06.2025
CESTAT Chennai Rejects Customs Duty Demand on Finished Leather
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai, has allowed a group of appeals filed by leather exporters including Sri Karpaga Leathers, Meenal Leather Exports, Blossom Leathers, and others, setting aside the entire demand of export duty, penalty, and confiscation orders issued by the Commissioner of Customs, Chennai-IV.
Case Background: Misdeclaration of Leather Type Alleged
The case pertained to exports of finished leather by multiple Chennai-based exporters. Customs authorities alleged that these exporters had:
- Misdeclared semi-finished leather as finished leather, and
- Manipulated test samples to obtain a favorable certificate from CLRI (Central Leather Research Institute).
The Revenueโs primary contention was that:
- Exporters evaded 60% ad valorem export duty on unfinished leather.
- Wrongful duty drawback and incentives were claimed.
- Test reports were manipulated by switching samples.
Based on this, the Department issued Show Cause Notices and passed Orders-in-Original invoking Sections 113(i), 114(ii), 114AA, 125, and 28(4) of the Customs Act, 1962.
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 Chennai
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