ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 12.08.2025
CESTAT Delhi Sets Aside Penalty on Customs Broker in CVD Assessment Dispute โ โ โ
In a significant ruling, the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi, has set aside the penalty imposed on M/s. โ AV Global Corporation (P) Ltd., a Customs House Agent (CHA), in a case involving the assessment of Countervailing Duty (CVD) on imported CNG kits and components. โ The decision, delivered by Judicial, highlights the importance of judicial discretion in penalty imposition and the burden of proof on the department in cases of alleged suppression of facts.
Background of the Case
The case arose from an investigation by the Customs Department, which alleged that M/s. โ Shrimanker Gas Car Services Pvt. โ Ltd. (the importer) had evaded customs duties by paying CVD based on the transaction value of imported CNG kits instead of the Retail Sale Price (RSP), as mandated under the Customs Tariff Act, 1975, and related provisions. โ The department issued a show cause notice proposing recovery of Rs. โ 12,11,469/- along with interest and penalties. โ M/s. AV Global Corporation, acting as the CHA for the importer, was also penalized under Section 112(a) of the Customs Act, 1962, for allegedly abetting the importer in the short payment of duty. The penalty of Rs. โ 18,000/- was imposed on the CHA, which was upheld in the Order-in-Appeal. โ Aggrieved, the CHA approached 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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