ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 19.09.2025
CESTAT Delhi- the extended period of limitation under Section 28(4) of the Customs Act cannot be invoked β β
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.
ββ
In a significant ruling, the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi, recently delivered its judgment on a series of appeals involving Toyota Material Handling India Private Limited (TMHIPL), its Senior Manager, and the Principal Commissioner of Customs (Import), New Delhi. The case revolved around the assessment of Countervailing Duty (CVD) on imported forklift parts and the invocation of the extended period of limitation under Section 28(4) of the Customs Act, 1962. Hereβs a breakdown of the case and its implications.
The Background
Toyota Material Handling India, a subsidiary of Toyota Industrial Corporation, Japan, imports and distributes forklifts and their parts in India. β Between February 2014 and March 2017, the company imported forklift parts and paid CVD based on the transaction value of the goods. However, the Directorate of Revenue Intelligence (DRI) alleged that CVD should have been assessed on the Maximum Retail Price (MRP) basis, as per the Customs Tariff Act, 1975, and related rules. β
A show cause notice was issued in January 2019, alleging that Toyota India had evaded duty by not declaring the MRP of the imported goods. β The Principal Commissioner of Customs confirmed a demand of βΉ1.67 crore for the period up to May 13, 2015, but dropped a demand of βΉ3.25 crore for the period after May 14, 2015, citing amendments to the Legal Metrology (Packaged Commodities) Rules, 2011.
Source: CESTAT Delhi
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