ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 15.10.2025
CESTAT Allahabad Sets Aside Penalties in Alleged Over Invoicing
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 landmark decision, the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Allahabad, has delivered justice to exporters M/s Shree Venkateswara Exports and M/s Surya Jyoti Global Logistics by setting aside penalties and redemption fines imposed under Sections 114 and 114AA of the Customs Act, 1962. The case revolved around allegations of over-invoicing export goods to claim inadmissible drawback benefits, but the Tribunal found no substantial evidence to support these claims.
Background of the Case
The dispute originated from the export of readymade garments by M/s Shree Venkateswara Exports through Customs Broker M/s Surya Jyoti Global Logistics. The Directorate of Revenue Intelligence (DRI) alleged that the goods were overvalued to claim excessive drawback benefits. Following investigations, the goods were confiscated, and penalties totaling Rs. 22,21,267/- were imposed on both appellants, along with a redemption fine of Rs. 66,63,800/-. The appellants challenged the Order-in-Original passed by the Principal Commissioner of Customs, Noida, citing procedural lapses, lack of evidence, and violation of natural justice.
Source: CESTAT Allahabad
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