ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 10.07.2025
CESTAT Delhi- DGFT Cancellation Mandatory for Action Under Section 28AAA
The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi, Principal Bench, vide Final Order Nos. 50827-50828/2025 dated 04.06.2025, quashed the confiscation, recovery of export benefits, and penalties imposed on M/s K.G. Exports and its partner. The case revolved around the alleged diversion of export consignments and ineligible claim of Focus Market Scheme (FMS) benefits.
Case Background
M/s K.G. Exports, a manufacturer-exporter of ready-made garments, exported consignments to the UAE while declaring Panama as the destination in shipping bills. Based on the documents, the firm claimed benefits under the Focus Market Scheme (FMS), which incentivizes exports to specified countries like Panama.
Subsequent investigations by Customs revealed that the goods were shipped to Foreigner, UAE, not Panama, as declared. Customs authorities alleged that this misrepresentation was done to fraudulently avail FMS benefits. Based on statements made by the freight forwarder, Customs proceeded against the exporter and its partner under Sections 113, 114(iii), 114AA, and 28AAA 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 Delhi
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