ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 24.06.2025
CESTAT Ahmedabad Allows Exemption on Flexi Tanks
The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Ahmedabad Bench has allowed the appeals filed by Goodrich Maritime Pvt. Ltd. and its Managing Director, Venkatraman Thyagarajan, against the denial of exemption under Notification No. 104/94-Cus dated 16.03.1994 on imported Flexi Tank Containers.
The core issue revolved around whether Flexi Tank Containers, which are typically used once for transporting liquid cargo and then exported, qualify as “durable containers” to claim customs duty exemption.
Background of the Case
- The Department denied exemption benefits to Goodrich Maritime, asserting that Flexi Tank Containers are not durable since they are used only once and not repeatedly.
- Additional objections were raised regarding:
- Whether the importer themselves must re-export the containers.
- Whether drawback claims by exporters using the containers affect eligibility.
The Commissioner of Customs, Mundra, rejected the exemption and imposed a penalty on the Managing Director under Section 112 of the Customs Act, 1962.
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
Handy Download:
Write to us at office@aadrikaalaw.com
Tel: +91-11-4999 2707 I +91-9999005379