The Delhi High Court has condoned the delay of 1610 days in filing the customs appeal subject to the payment of the cost of Rs. 5 Lakhs to customs commissioner.
The bench of Justice Prathiba M. Singh and Justice Rajneesh Kumar Gupta has restored the appeal to its original position before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) subject to the payment of Rs. 5 lakhs shall be deposited with the Department by 10th July, 2025.
An investigation was conducted against the Appellant Company/assessee and its Directors on the grounds of allegations that certain goods were exported by them which were highly overvalued, only with the intention to earn duty drawbacks.
A Show Cause Notice was issued upon the Appellant Company by the Additional Commissioner, Customs & Central Excise, Delhi-IV, Faridabad and a detailed reply was filed. The Order was passed and was further challenged by the Appellant along with the Department before the Commissioner of Customs (Appeals).
The Commissioner of Customs (Appeal) upheld the Order. It was held that the goods were exported by the Appellant company under fraudulent duty drawback claims, rejecting 365 shipping bills and rendering them liable for confiscation under Section 113 of the Customs Act, 1962.
The matter was partially remanded to the adjudicating authority for a fresh determination of penalties under Section 114(iii) of the Customs Act, 1962.
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In the meantime, the Enforcement Directorate (ED) also initiated an investigation against the Appellant along with the ongoing investigation by the Directorate of Revenue Intelligence (DRI).
The assessee that the Director of the Appellant Company was arrested on 25th September, 2021 and he subsequently faced various medical issues due to which his health condition is stated to have deteriorated.
The Order-in-Appeal No. dated 28th May, 2019, passed by the Commissioner of Customs (Appeal) was challenged by the Appellant before the CESTAT. The said appeal was filed after the COVID-19 pandemic, only on 29th January, 2024. Thus, there was a substantial delay in the filing of the appeal of more than 1610 days.
The CESTAT dismissed the appeal filed by the Appellant holding that the Appellant had failed to satisfactorily explain the delay of 1617 days.
The court condoned the delay subject to stringent terms and conditions.
Firstly, the Appellant shall deposit a sum of Rs.5 lakhs as costs with the Respondent- Department.
Secondly, no unnecessary adjournments shall be taken before CESTAT.
Case Details
Case Title: M/S DURGA APPARELS PVT LTD Versus COMMISSIONER OF CUSTOMS
Case No.: CUSAA 80/2025 & CM APPL. 28264/2025, 28265/2025, 28266/2025, 28267/2025
Date: 09th May, 2025
Counsel For Petitioner: Mr. Chinmaya Seth, Mr. A.K. Seth, Ms. Palak Mathur and Mr. Varun Phore
Counsel For Respondent: Mr. Aakarsh Srivastava, SSC with Ms. Anugya Gupta
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