The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Principal Bench, New Delhi has held that the customs department cannot reopen concluded penalty proceedings.
The bench of Justice Dilip Gupta (President) and Hemambika R. Priya (Technical Member) has set aside a penalty of Rs. 2 lakh imposed on M/s Buhariwala Logistics in connection with the controversial import of a Toyota Land Cruiser dating back to 2008.
The case stems from the import of a Toyota Land Cruiser by one Sumit Walia in the name of Ashish Bali, with the involvement of Buhariwala Logistics as the clearing agent. A show-cause notice was issued on May 22, 2013, and in February 2015, the Principal Commissioner imposed a penalty of ₹2 lakh on the logistics firm under Section 112(a)(ii) of the Customs Act, 1962.
However, the company successfully appealed before the Tribunal, which on September 7, 2015, quashed the penalty. That order attained finality as the Customs Department did not file any further appeal.
The controversy was reignited after a related case involving another noticee, S.B. Mehta, was remanded back to the Principal Commissioner by CESTAT in July 2017. On this basis, the Principal Commissioner issued a fresh notice to Buhariwala Logistics in December 2024 and, despite objections from the firm, reimposed the ₹2 lakh penalty in March 2025.
The company’s counsel, Dr. Sujay Kantawala, argued that the matter had already been conclusively settled by the Tribunal in 2015, and there was no legal ground to reopen proceedings against the appellant merely because another co-noticee’s case had been remanded.
Agreeing with this contention, the Tribunal ruled that the Principal Commissioner had “completely failed to appreciate the issue” and acted without jurisdiction in re-adjudicating a matter that had already reached finality.
“The order passed by the Principal Commissioner dated 12.03.2025 cannot be sustained and is set aside. The appeal is accordingly allowed,” Justice Gupta said while pronouncing the decision.
Case Details
Case Title: M/s Buhariwala Logistics Versus Principal Commissioner of Customs
Case No.: Customs Appeal No. 50979 of 2025
Date: 11.09.2025
Counsel For Appellant: Dr. Sujay Kantawala and Ms. Aishwarya Kantawala, Advocate
Counsel For Respondent: Shiv Shankar
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