Larsen & Toubro Ltd. Vs Commissioner of Customs (CESTAT Chennai)
In Larsen & Toubro Ltd. vs Commissioner of Customs (CESTAT Chennai, Order pronounced on November 3, 2025), the Tribunal examined the legality of a demand raised under Section 28 of the Customs Act, 1962, against the importer, Larsen & Toubro Ltd. (“L&T”), for alleged suppression of freight and other charges relating to the import of used machinery from Sharaf Foundations, Dubai. The impugned order, No. 35511/2015 dated February 27, 2015, had confirmed the demand for differential duty, interest, confiscation, and penalties.
The case originated from a common Show Cause Notice (SCN) dated October 8, 2014, which alleged that L&T had not correctly declared freight and associated charges in import documents, showing instead that such charges were paid by the overseas supplier. The Department, invoking Rules 9 and 10 of the Customs Valuation Rules, 2007, read with Section 14 of the Customs Act, sought to reassess the declared value and recover the differential duty under Section 28, along with applicable penalties under Sections 112(a), 114A, and 114AA. L&T filed a detailed reply, contending that there was no suppression of material facts and that all duties, including freight, overhead expenses, and yard charges, had been duly paid.
