ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 24.06.2025
CESTAT Chennai Clarifies Finished Leather Export Criteria
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai, allowed the appeal of M/s Nabisha Leathers and set aside the imposition of export duty, penalty, and fine imposed for alleged export of βunfinished leather.β The case revolved around a nuanced interpretation of DGFTβs Public Notice on finished leather norms and marks a vital precedent on how such technical regulations should be interpreted.
Background of the Case
- Nabisha Leathers filed a shipping bill in March 2010 to export 37 cartons of βGoat Shoe Suede Upper Leather.β
- A leather expert from Customs flagged 13 cartons of grey-coloured leather, suspecting non-compliance with DGFT Public Notice No. 21/2009-14.
- A sample was sent to the Central Leather Research Institute (CLRI), which reported non-compliance citing “absence of snuffing” on the grain as the reason.
- Based on the CLRI report, Customs:
- Confiscated the consignment under Section 113(d) of the Customs Act, 1962.
- Levied 60% export duty on the consignment.
- Imposed a penalty of βΉ10,000.
- Allowed redemption on fine of βΉ50,000.
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 Chennai
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