ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 17.06.2025
CESTAT Ahmedabad- No Penalty for Theoretical Weight Variation
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) Ahmedabad has set aside penalties and redemption fine imposed on Kalpataru Transmission Ltd, citing lack of mala fide intent in a case involving theoretical weight discrepancies during import.
Case Background:
Kalpataru Transmission Ltd imported Hot Rolled Steel Plates via Mundra port under Bill of Entry No. 6289437 dated 31.07.2014. While the declared weight in the bill was 51,716 kg, the customs examination revealed an actual weight of 53,820 kgβan excess of 2,104 kg (approx. 4.1%).
This discrepancy led customs to allege misdeclaration of quantity to evade duty and subsequently:
- Confiscated the excess quantity under Section 111(m) of the Customs Act, 1962
- Imposed a redemption fine of βΉ30,000 under Section 125, and
- Levied a penalty of βΉ15,000 under Section 112(a)
The appeal before the Commissioner (Appeals) was dismissed, prompting Kalpataru to approach CESTAT.
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