ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 17.09.2025
CESTAT Allahabad Sets Aside Penalties in Alleged Onion Exportโ โ โ ย
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.
In a significant ruling, the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Allahabad, has set aside penalties imposed on three appellants accused of illegally exporting onions to Nepal under the guise of potatoes. โ The case, which revolved around alleged violations of a government ban on onion exports, highlights the importance of admissible evidence and procedural safeguards in adjudication processes. โ This blog delves into the details of the case and the Tribunal’s reasoning behind its decision.
Background of the Case
The controversy began with the issuance of a Show Cause Notice (SCN) dated September 29, 2020, by the Directorate of Revenue Intelligence (DRI). โ The SCN alleged that M/s Sai Ram Enterprises, its proprietor Appellants (a Superintendent at the Land Customs Station, Toothibari) were involved in exporting onions to Nepal despite a ban imposed by the Director General of Foreign Trade (DGFT) through Notification No. 21/2019-20 dated September 29, 2019. The onions were allegedly exported under the guise of potatoes using falsified shipping bills. โ The Joint Commissioner of Customs adjudicated the SCN and imposed penalties of Rs. โ 5,00,000 each on the appellants under Sections 114AA and 114(i) of the Customs Act, 1962. โ These penalties were upheld by the Commissioner (Appeals), prompting the appellants to approach the Tribunal.
Source: CESTAT Allahabad
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