The Delhi High Court has declined to entertain the appeal filed by the customs department over Rs. 57K drawback dispute by citing negligible quantum.
The bench of Justice Prathiba M. Singh and Justice Rajneesh Kumar Gupta has observed that the total amount alleged to have been wrongly availed by the customs department by way of drawback is only Rs. 57,201 and
the penalty imposed in the Order-in-Original was Rs.50,000. The assessee may have committed violations in principle, having regard to the negligible quantum involved, the Court is not inclined to entertain the present appeal.
The appeal has been filed by the department under Section 130 of the Customs Act challenging the order passed by the Central Excise, Service Tax Appellate Tribunal (CESTAT).
The proceeding arises out of Show Cause Notice that was issued to the Respondent-M/s Kunal Travels (Cargo). The allegation in the SCN was that certain goods were mis-declared and hence a penalty was imposed.
The order was appealed by the Respondent/assessee before CESTAT which has set aside the Order on the ground that there are no proper allegations in the SCN as to which of the regulations has been violated. Thus the appeal has been preferred by the Appellant-Commissioner of Customs.
The Customs Commissioner contended that the CESTAT’s order is extremely cryptic and does not deal with the matter properly on facts.
The court refused to entertain a customs appeal.
Case Details
Case Title: Commissioner Of Customs Versus Kunal Travel Cargo
Case No.: CUSAA 74/2025 & CM APPL. 26226/2025
Date: 01/05/2025
Counsel For Petitioner: Harpreet Singh
Counsel For Respondent: None
