CESTAT Mumbai Upholds ASEAN FTA Claim in Cashew Import Dispute

ALO Law Office- IDT Tax I Arbitration I Litigation

Date: 17.06.2025

CESTAT Mumbai Upholds ASEAN FTA Claim in Cashew Import Dispute

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Mumbai has ruled in favor of M/s AAA Trading Company, setting aside the denial of exemption benefits under the India–ASEAN FTA for import of roasted cashew kernels from Vietnam.

Case Background:

M/s AAA Trading imported roasted cashew kernels and claimed exemption under:

• Notification No. 46/2011-Cus. dated 01.06.2011, and
• Notification No. 63/2016-Cus. dated 31.12.2016,

…issued in line with India’s commitments under the ASEAN FTA.

However, Customs authorities at Nhava Sheva disputed the classification of goods and alleged that the cashew kernels were not roasted but plain/raw. Relying on a DRI investigation and test reports from CEPCI Lab, Customs imposed:

• Demand of differential duty: ₹22,47,676/-
• Confiscation of goods (live consignment)
• Penalties under the Customs Act

The order was upheld partially by the Commissioner (Appeals), leading AAA Trading to approach CESTAT.

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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