CESTAT Chennai Clarifies Finished Leather Export Criteria

ALO Law Office- IDT Tax I Arbitration I Litigation

Date: 24.06.2025

CESTAT Chennai Clarifies Finished Leather Export Criteria

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai, allowed the appeal of M/s Nabisha Leathers and set aside the imposition of export duty, penalty, and fine imposed for alleged export of “unfinished leather.” The case revolved around a nuanced interpretation of DGFT’s Public Notice on finished leather norms and marks a vital precedent on how such technical regulations should be interpreted.

Background of the Case

• Nabisha Leathers filed a shipping bill in March 2010 to export 37 cartons of “Goat Shoe Suede Upper Leather.”
• A leather expert from Customs flagged 13 cartons of grey-coloured leather, suspecting non-compliance with DGFT Public Notice No. 21/2009-14.
• A sample was sent to the Central Leather Research Institute (CLRI), which reported non-compliance citing “absence of snuffing” on the grain as the reason.
• Based on the CLRI report, Customs:
  • Confiscated the consignment under Section 113(d) of the Customs Act, 1962.
  • Levied 60% export duty on the consignment.
  • Imposed a penalty of ₹10,000.
  • Allowed redemption on fine of ₹50,000.

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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