ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 15.09.2025
Supreme Court of India Upholds CESTAT Decision in Customs Valuation β β
This Article has been written by Shri Ravi Shekhar Jha, Advocate based in New Delhi. The views expressed are based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.
On October 6, 2023, the Supreme Court of India delivered a significant judgment in the case of Commissioner of Customs (Imports), Mumbai vs. M/s Ganpati Overseas (2023INSC881), addressing critical issues related to customs valuation under the Customs Act, 1962. The judgment, authored by Justice, upheld the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) decision, which had set aside the customs department’s order enhancing the value of imported goods and imposing penalties on the importer. β
Background of the Case
The case revolved around allegations of under-invoicing by M/s Ganpati Overseas, which had imported tuners and saw filters from Hong Kong during 1997-1999. β The Directorate of Revenue Intelligence (DRI) alleged that the importer had declared lower prices for the goods to evade customs duty. β The department relied on unattested photocopies of export declarations filed by the foreign supplier before the Hong Kong customs authority, which showed higher prices than those declared in the import invoices.
The adjudicating authority rejected the import invoice prices and enhanced the value of the goods under Rule 8 of the Customs Valuation (Determination of Price of Imported Goods) Rules, 1988. β Penalties were imposed on the importer and its proprietor. β However, the CESTAT overturned this decision, leading to the department’s appeal before the Supreme Court.
Source: Supreme Court
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