ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 02.08.2025
CESTAT Kolkata Dismisses Revenue Appeal in Betel Nut Origin Dispute โ โ
In a significant ruling, the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Kolkata, dismissed appeals filed by the Revenue in a case involving alleged fraudulent import of betel nuts. โ The case, which revolved around mis-declaration of the country of origin and undervaluation of goods, highlights the complexities of international trade and customs regulations. โ Here’s a detailed look at the case and the tribunal’s decision.
Background of the Case
The Directorate of Revenue Intelligence (DRI), Ahmedabad Zonal Unit, initiated investigations based on specific intelligence, appellant was involved in fraudulent imports of betel nuts under the Import-Export Code (IEC) of M/s S. Krishna & Co. โ The betel nuts, allegedly of Indonesian origin, were routed through Bangladesh to evade customs duties by misusing the SAARC Preferential Trading Arrangement (SAPTA) benefits under Notification No. โ 105/1999.
The investigation revealed that Bangladesh-based firms were re-exporting betel nuts without any processing, falsely claiming them as products of Bangladesh. โ Additionally, the goods were grossly undervalued, with actual values ranging from USD 1400 to USD 1750 PMT, while declared values were between USD 300 and USD 450 PMT. โ Evidence, including email correspondences and statements, pointed to a network involving Indian importers, Bangladeshi firms, and an Indonesian broker.
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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