ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 13.10.2025
CESTAT Delhi Sets Aside Confiscation and Penalties in Export Valuation Dispute
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.
The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi, recently delivered a significant judgment in the case of Emerald Overseas vs. โ Principal Commissioner of Customs (Customs Appeal No. โ 51100 of 2022). โ This decision, dated October 1, 2025, addresses critical issues surrounding the valuation of export goods and the liability of such goods to confiscation under the Customs Act, 1962. The ruling provides much-needed clarity for exporters and customs authorities alike.
Background of the Case
Emerald Overseas, the appellant, had filed eight shipping bills on June 12, 2017, to export garments under a claim of drawback. โ The declared Free on Board (FOB) value of the goods was โน4,00,54,751, with a corresponding drawback claim of โน39,35,402.37. โ However, customs authorities suspected overvaluation of the goods to fraudulently claim a higher drawback. โ Following an investigation, the Additional Commissioner re-determined the FOB value to โน61,36,200 and reduced the admissible drawback to โน6,02,654. โ The goods were confiscated under Section 113(i) of the Customs Act, and penalties were imposed under Sections 114(iii) and 114AA.
Source: CESTAT Delhi
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