ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 14.10.2025
CESTAT Bangalore- Clerical Error in Shipping Bill Not a Ground for Confiscation or Penalty
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), Bangalore, has set aside the confiscation and penalty imposed on M/s. Avasarala Technologies Ltd., a 100% Export Oriented Unit (EOU). β The case revolved around alleged discrepancies in the export of engineering equipment, specifically parts of rubber processing machines. β The judgment highlights the importance of distinguishing between clerical errors and intentional misdeclarations in export documentation. β
Background of the Case
The appellant, Avasarala Technologies Ltd., had filed three shipping bills for the export of parts of rubber processing machines. β During the examination of goods, discrepancies were noted in two shipping bills (Nos. β 4375372 and 4375056). β Against the declared 43 sets of parts, only 15 sets were found, resulting in a shortage of 28 sets. Additionally, a weight discrepancy of 353 kgs was observed. β This led to the issuance of a show-cause notice proposing confiscation of goods under Section 113(h)(i) of the Customs Act, 1962, and the imposition of penalties under Section 114(iii). β
The adjudicating authority confiscated the goods valued at Rs. β 12,98,464, imposed a fine of Rs. β 3 lakhs in lieu of confiscation, and levied a penalty of Rs. β 2 lakhs. β The Commissioner (Appeals) upheld this decision, prompting the appellant to approach the Tribunal.
Source: CESTAT Bangalore
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