Prakash Goti Vs Commissioner of Customs (Airport & ACC) (CESTAT Kolkata)
Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Kolkata, has overturned a penalty of ₹5,94,096 imposed on Prakash Goti, a director of M/s. Dharmanandan Diamonds Private Limited, Mumbai. The Tribunal’s decision, issued on June 19, 2025, concluded that there was no sufficient evidence linking Goti or his company to alleged misdeclaration or overvaluation of imported diamonds by other firms.
The case originated from an investigation by the Directorate of Revenue Intelligence (DRI), Surat, into M/s. Chirayu Impex Private Limited and M/s. Amrapali Exim Private Limited. These importers were accused of misdeclaring cut and polished diamonds as broken diamonds to evade customs duties and overvaluing them to illegally remit foreign exchange. During the investigation, consignments imported by these firms were seized following reports that the actual market value was significantly lower than declared.
Prakash Goti’s company, Dharmanandan Diamonds, which manufactures and sells cut and polished diamonds, came under scrutiny because it had exported consignments of polished diamonds brought by a broker whose name surfaced during the inquiry. A statement from Goti’s company’s senior accountant indicated they had exported three to four such consignments. Goti himself stated that the goods had been exported after examination.
