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Date: 21.08.2025
CESTAT Delhi Quashes Penalty on Bentley Motors in Customs Valuation Dispute โ โ โ โ โ โ
In a significant decision, the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi, has set aside the penalty of Rs. 20,00,000/- imposed on M/s Bentley Motors Ltd. under Section 112(a)(ii) of the Customs Act, 1962. โ The case revolved around allegations of undervaluation of imported Bentley cars by their Indian dealer, M/s Exclusive Motors Pvt. Ltd., and the subsequent evasion of customs duty. โ
Background of the Case
The Directorate General of Revenue Intelligence (DRI) had initiated an investigation into the import of Bentley cars by Exclusive Motors, alleging that the dealer undervalued the cars by not including additional payments made to Bentley Motors through supplementary invoices. โ These supplementary invoices were reportedly issued when cars were transported by air instead of by ship, leading to additional freight costs. โ
The Commissioner of Customs, ICD Patparganj, New Delhi, had earlier confirmed the demand for differential customs duty of Rs. โ 71.74 crore along with interest and imposed penalties on Exclusive Motors, its Managing Director, National Sales Manager, and Bentley Motors. While the appeals of the other three noticees were allowed by the Tribunal in November 2024, Bentley Motors’ appeal was heard separately.
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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