ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 11.08.2025
CESTAT Delhi- The re-determination of the carβs value under rule 3 of the customs valuation rules was unjustified
In a landmark decision, the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), New Delhi, has delivered justice to appellants in a case involving the import of a Bentley Flying Spur Automatic car. The judgment, pronounced on August 8, 2025, has set aside penalties, confiscation orders, and demands for differential duty, bringing relief to Appellant, M/s Mera Baba Realty Associates Pvt. Ltd., Vikrant Kalia, and M/s Payless Cargo. β This case highlights the importance of adhering to customs regulations while also ensuring fair treatment of importers.
Background of the Case
The case revolved around the import of a Bentley Flying Spur Automatic car by Appellant, Director of M/s Big Boyz Toyz, in October 2009. β The car was declared as new, with an assessable value of Rs. 73,84,842. However, the Principal Commissioner of Customs re-determined the value to Rs. β 88,61,962, citing undervaluation and misdeclaration. β Additionally, the benefit of concessional duty under Notification No. β 21/2002-CUS was denied, as the car was registered in the UK prior to importation. β Penalties and confiscation orders were imposed on the appellants, leading to appeals before the Tribunal.
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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