ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 16.08.2025
CESTAT Ahmedabad Quashes โน20 Lakh Penalty on CHA โ โ โ โ
In a significant judgment, the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Ahmedabad, has set aside the penalty of โน20,00,000 imposed on Appellant, Manager of Customs House Agent (CHA) firm M/s. Shree Maruti Shipping Services. โ The decision, delivered by Honโble Judicial, highlights the importance of adhering to principles of natural justice and the need for cogent evidence in penalty proceedings under the Customs Act, 1962.
Background of the Case
The case originated from an investigation by the Directorate of Revenue Intelligence (DRI), Mumbai, into the import of 208 MT of HDPE valued at โน54,07,418 under an allegedly forged advance license. โ The investigation revealed discrepancies in the import documents, including the use of a non-existent firm, M/s. โ Roha Dye Chem Pvt Ltd, as the importer. โ The CHA firm, M/s. โ Shree Maruti Shipping Services, was involved in processing the customs clearance documents. โ
Initially, the Commissioner of Customs, Kandla, imposed a penalty of โน5,00,000 on Appellant under Section 112(b) of the Customs Act, 1962. โ However, after multiple rounds of adjudication and remand proceedings, the penalty was enhanced to โน20,00,000 under Section 112(a) in the impugned order dated 24th September 2012. โ Aggrieved by this decision, Appellant filed an appeal before the CESTAT.
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 Ahmedabad
Handy Download:
Write to us at office@aadrikaalaw.com
Tel: +91-11-4999 2707 I +91-9999005379
Leave a Reply