CESTAT Kolkata Sets Aside Penalties in ₹5.82 Crore Firecracker Seizure

ALO Law Office- IDT Tax I Arbitration I Litigation

Date: 21.06.2025

CESTAT Kolkata Sets Aside Penalties in ₹5.82 Crore Firecracker Seizure

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Kolkata has set aside all penalties imposed on six individuals alleged to be involved in the illegal storage and smuggling of firecrackers purportedly of Chinese origin, valued at ₹5.82 crores.

The case revolved around a town seizure made by the DRI from a godown in Dankuni, West Bengal, where firecrackers were allegedly smuggled and stored in violation of Customs and Explosives laws. However, the Tribunal found multiple procedural lapses and lack of evidence, leading to full relief for the appellants.

Background

• Date of Seizure: 07–08 August 2021
• Location: Godown No.1-D, Vidya Complex-1, Dankuni, West Bengal
• Goods Seized: Firecrackers stored in over 2500 gunny sacks, allegedly of Chinese origin
• Valuation: ₹5,82,12,560/-
• Penalties Imposed:
  • ₹10,00,000 – (Alleged Mastermind)
  • ₹5,00,000 – (Company Representative)
  • ₹5,00,000 – (IEC Provider)
  • ₹50,000 each – (Driver, Godown Owner, Misc.)

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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