ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 17.06.2025
CESTAT Kolkata Sets Aside Penalties in Bonded Gold Import
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Kolkata has exonerated Indo Friends Agency, Sequel Logistics Pvt. Ltd., and others from customs penalties relating to the alleged diversion of bonded gold imported under the 80:20 Scheme.
The case, involving complex movements of duty-free gold under RBIβs controlled import-export mechanism, saw penalties totaling over βΉ1.65 crore imposed on various logistics and customs service providers. However, the Tribunal found no evidence of abetment, knowledge, or procedural failure on their part.
Case Summary
- The gold was imported under RBIβs 80:20 Scheme and stored in Customs Bonded Warehouses (CBWs).
- Upon investigation, Customs alleged diversion of 4 kg gold meant for export.
- Indo Friends Agency was the customs broker, and Sequel Logistics was responsible for secure transportation and vault storage.
- Despite having no control over the gold post-delivery, these intermediaries were penalized under Section 112 of the Customs Act for alleged abetment.
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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