ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 19.05.2025
CESTAT Delhi Sets aside Enhanced valuation, penalty, and redemption fine
The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Principal Bench, New Delhi allowed the appeal filed by Krishna Impex International, quashing the allegations of customs duty evasion, undervaluation, and associated penalties. The Tribunal held that the department failed to follow mandatory procedures under Section 14 of the Customs Act, 1962, and the Customs Valuation Rules, 1988, before rejecting the declared value of imported goods.
Background of the Case
- Appellant: Krishna Impex International, Delhi
- Dispute Origin: DRI search operation in 2008 alleging undervaluation of imported Tussah Silk Yarn from China
- Key Trigger: Statement by proprietor Shri Amarnath Jhunjhunwala admitting possible undervaluation
- Goods Assessed Under: Multiple Bills of Entry from 2005 to 2008
- Key Legal Provisions Invoked by Customs:
- Section 14 of the Customs Act, 1962
- Rule 4 and Rule 10A of the Customs Valuation Rules, 1988
- Penalties under Sections 112(a), 114A, 114AA, and redemption fine
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 Delhi
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