ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 04.08.2025
CESTAT Mumbai Clarifies Scope of Section 117 Customs Act in Export Documentation โ
In a significant ruling, the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Mumbai, has set aside a penalty of โน2,00,000/- imposed on M/s Ajanta Pharma Ltd. under Section 117 of the Customs Act, 1962. The case revolved around alleged mis-declaration in Airway Bills for 43 consignments of pharmaceutical products exported between September 2018 and March 2021. โ This decision highlights the importance of adhering to legal provisions and ensuring due process in penalty imposition. โ
Background of the Case
Ajanta Pharma Ltd., a prominent pharmaceutical exporter, faced allegations of mis-declaration in Airway Bills, where the goods were described as “medical apparatus” instead of their actual descriptionโErectile Dysfunction Medicines such as Kamagra Oral Jelly, Super Kamagra Tablets, and Kamagra Gold Tablets. โ While the shipping bills, invoices, and packing lists contained accurate descriptions, the discrepancy in Airway Bills led the Customs Department to impose a penalty under Section 117 of the Customs Act, 1962. โ
The penalty was challenged by Ajanta Pharma Ltd., arguing that the alleged contravention pertained to provisions of the Foreign Trade Policy 2015-20, not the Customs Act. โ The company contended that no violation of the Customs Act was established, making the penalty unsustainable.
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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