ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 28.06.2025
CESTAT Chennai- No Misdeclaration in Buff Sole Leather Export
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai, in its Final Order No. 40667/2025 dated 25.06.2025, ruled in favour of M/s. Welfare Leather Co. by setting aside the confiscation, redemption fine, and penalty imposed on the alleged misdeclaration of leather goods.
Background:
Welfare Leather had filed a drawback shipping bill for the export of Buff Sole Leather, which was subjected to inspection and testing by the Central Leather Research Institute (CLRI). The CLRI report concluded that the leather did not conform to the prescribed thickness (less than 3mm) and apparent density (less than 0.9 gm/cc) as per DGFT Public Notice No. 21/2009-14 dated 01.12.2009.
Relying on this report, the adjudicating authority ordered the confiscation of the goods valued at ₹3,02,206.39, imposed a redemption fine of ₹25,000 under Section 125 of the Customs Act, and levied a penalty of ₹5,000 under Section 114(ii).
The Commissioner (Appeals) upheld the adjudication, leading the appellant to file the current appeal before CESTAT Chennai.
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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