Case Law Details
Himachal Fashion Private Limited Vs Commissioner of Customs (CESTAT Delhi)
The recent decision of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) in the case of Himachal Fashion Pvt Ltd versus Commissioner of Customs (CESTAT Delhi) addresses the issue of diverted imported fabrics. The appellant, Himachal Fashion Pvt Ltd, faced penalties and confiscation under the Customs Act for allegedly selling fabrics meant for export in the open market. This article provides a detailed analysis of the case and the tribunal’s decision.
Detailed Analysis
The case revolves around the import of fabrics by Himachal Fashion Pvt Ltd under an Advance Authorisation for export of garments. Allegations arose that the imported fabrics were diverted for sale in the open market instead of being used for manufacturing export products, violating the terms of the authorization. Investigations by the Directorate of Revenue Intelligence (DRI) led to the seizure of imported goods and subsequent penalties imposed on the appellant.
The appellant contested the penalties, arguing that they had fulfilled their export obligations and were unfairly denied the opportunity for cross-examination during the proceedings. However, the tribunal found that the appellant failed to cooperate with the investigations and failed to provide evidence to contradict the findings of the adjudicating authority.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
