ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 08.10.2025
CESTAT Delhi- Procedural Lapse in Filing Returns Does Not Warrant Penalty Under Customs Act
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), Principal Bench, New Delhi, has set aside penalties imposed on M/s Paramount Surgimed Limited for alleged procedural lapses in filing quarterly returns under the Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017. This decision, delivered by Honโble, Member (Judicial), highlights the distinction between procedural non-compliance and deliberate contravention of legal provisions, offering valuable insights for importers and businesses availing exemption benefits under customs law.
Background of the Case
M/s Paramount Surgimed Limited, an importer availing exemption under Notification No. โ 50/2017-Cus., was penalized for late filing of quarterly returns for multiple quarters between July 2017 and March 2019. The penalties, totaling Rs. 1,75,000, were imposed under Section 158 of the Customs Act, 1962, for contravention of Rule 6(3) of the Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017. The appellant challenged the penalties, arguing that the alleged non-compliance was purely procedural and lacked any intent to evade revenue or commit fraud.
Source: CESTAT Delhi
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