Indusind Media And Communications Limited Vs Principal Commissioner (CESTAT Delhi)
Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Delhi Bench, has delivered a significant ruling, setting aside a penalty imposed under Section 114AA of the Customs Act, 1962 (referred to as ‘the Act’), on the grounds that the provision cannot be applied retrospectively. The decision came in the appeal filed by M/s. Indusind Media and Communications Limited (referred to as ‘the Appellant’) against an order dated November 13, 2019, passed by the Principal Commissioner of Customs, Air Cargo Complex (Import) (referred to as ‘Impugned order’).
The Tribunal’s order, pronounced today, May 19, 2025, provides partial relief to the Appellant, reducing a penalty under Section 112(a) of the Act while upholding the redemption fine. The core of the judgment revolves around the principle of prospective application of laws, particularly concerning Section 114AA, which was introduced into the statute much after the original transaction date.
Background of the Case: The dispute originates from a Bill of Entry filed by the Appellant on June 26, 2003. More than a decade later, on June 27, 2014, a Show Cause Notice (SCN) was issued to the Appellant. This SCN proposed the recovery of differential customs duty, confiscation of goods, and the imposition of a redemption fine under Section 125 of the Act, alongside penalties under Sections 112(a) and 114AA of the Act.
