ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 10.07.2025
CESTAT Ahmedabad- SEZ Re-Export Goods Not Liable for Confiscation
The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Ahmedabad, vide Final Order No. 10546/2025 dated 09.07.2025, delivered by Honβble Judicial Member, quashed the confiscation and penalty proceedings initiated against Flamingo Logistics, a warehousing service provider operating in the Kandla Special Economic Zone (SEZ).
Case Background
Flamingo Logistics, acting on behalf of its client M/s. M A Value Smart Trading Limited (Hong Kong), filed four warehousing bills of entry with SEZ Customs for storing consignments including hard disks, mini tower computer cases, and motherboards. Upon examination, Customs authorities observed dust and scratches on the goods and, based on HP India’s opinion, classified them as βusedβ or βsecond-handβ goods.
Relying on DGFT Notification No. 35(RE-2012)/2009-2014 and para 2.31 of the Foreign Trade Policy (FTP), Customs seized the goods citing import restrictions on second-hand items. While permitting re-export, the adjudicating authority imposed fines and penalties under Sections 111(d) and (m) of the Customs Act, 1962 on Flamingo Logistics.
This Article has been written by Shri Ravi Shekhar Jha, Advocate Delhi High Court based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.
Source: CESTAT Ahmedabad
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