ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 21.06.2025
CESTAT Chennai Rejected Customs Valuation and MIP Allegations
The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Chennai, has set aside a total penalty of βΉ60 crores imposed on M/s. Sindhu Lakshmi Impex, its partners, and an associate entity, M/s. BNM Global Ventures, in a high-profile case concerning the import of black pepper from Sri Lanka. The tribunal quashed the Commissioner of Customs’ Order-in-Original dated 20.11.2020, which had imposed penalties and declared the imports as βprohibitedβ under customs law.
Background of the Case
- Imports in Dispute: 10,79,000 Kgs of Black Pepper imported under various Bills of Entry.
- Allegations: The Department alleged overvaluation of imports from a related party in Sri Lanka (Lakshmi Export and Import), intended to circumvent the Minimum Import Price (MIP) of βΉ500/kg imposed by DGFT Notification No. 21/2015β20 dated 25.07.2018.
- Key Charges: Improper imports, misdeclaration of value, and violation of Sections 111(m), 111(o), 112, and 114AA 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 Chennai
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