ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 14.10.2025
CESTAT Delhi Sets Aside Customs Duty Demand Over DFIA License Misuse Allegations
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 legal development, the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Principal Bench, New Delhi, delivered a landmark judgment on October 13, 2025, in favor of M/s Lasco Chemie Pvt. Ltd. and its Director. The case revolved around the alleged misuse of Duty-Free Import Authorization (DFIA) licenses for importing epoxy resin under the guise of impregnating resin.
Background of the Case
The case originated from a show-cause notice (SCN) issued by the Directorate General of Revenue Intelligence (DRI) on January 29, 2015. The SCN alleged that M/s Lasco Chemie Pvt. Ltd. had fraudulently imported epoxy resin under DFIA licenses issued to Kanpur-based leather exporters. The DRI claimed that the DFIA licenses permitted the import of impregnating resin, not epoxy resin, and accused the importer of misdeclaring the goods to claim duty exemptions under Notification No. 98/2009-Customs dated September 11, 2009.
The Joint Commissioner upheld the allegations in the SCN, confirming a demand of differential duty amounting to ₹33,29,154, along with applicable interest and penalties under various sections of the Customs Act, 1962. The Commissioner (Appeals) later upheld this decision, leading the appellants to file an appeal with the CESTAT.
Source: CESTAT Delhi
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