The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Mumbai, has set aside a Rs. 4.6 crore anti-dumping duty (ADD) demand and penalties in a case concerning alleged misdeclaration of the country of origin of alloy wheels imported from Taiwan.
The bench of Dr. Suvendu Kumar Pati (Judicial Member) and Anil G. Shakkarwar (Technical Member) observed that the certificates of origin for the 30 consignments, scrutinized at the time of import, remained valid and unrevoked. A “suspected forgery” of one certificate of origin was insufficient to confirm evasion without corroborative evidence. All bills of entry had been finally assessed by customs authorities, and no reassessment was undertaken within the statutory period.
The appeals challenged an Order-in-Original dated November 4, 2019, wherein the Commissioner of Customs, Nhava Sheva-V, had confirmed the ADD demand, interest, confiscation orders, and penalties under Sections 112(a) and 114AA of the Customs Act, 1962.
The dispute arose from allegations that alloy wheels imported from China were routed through Taiwan to evade ADD of USD 2.15 per kg, imposed provisionally under Notification No. 15/2014-CUS and later definitively under Notification No. 21/2015-CUS.
A Directorate of Revenue Intelligence (DRI) investigation covering 30 bills of entry (December 2014–February 2017) alleged that four Taiwanese companies acted as intermediaries to misdeclare the goods’ origin. A show cause notice dated November 5, 2018, invoked the extended limitation period under Section 28(4) of the Customs Act, demanding ADD and proposing penalties.
The tribunal concluded that the goods did not attract anti-dumping duty and quashed the order confirming the demand. All associated penalties and confiscation orders were also set aside.
“We do not find any evidence to establish that in respect of the said 30 bills of entry the goods were either manufactured or supplied from China or routed through Taiwan after being supplied from China,” the bench held.
Case Details
Case Title: Sanjay Kacheria Versus Commissioner Of Customs, Nhava Sheva-V
Case No.: CUSTOMS APPEAL NO. 85205 OF 2020
Date: 24.07.2025
Counsel For Appellant: Prakash Shah, Sr. Advocate
Counsel For Respondent: D.S. Maan, Joint Commissioner
