CESTAT Quashes Penalty as Export Confiscation Already Set Aside

Safewater Lines (I) Pvt Ltd Vs Commissioner of Customs (Export) (CESTAT Delhi)

In a significant ruling, the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Delhi Bench, has set aside a penalty of Rs. 10 lakhs imposed on Safewater Lines (I) Private Limited, a freight forwarder, under Section 114(iii) of the Customs Act, 1962. The Tribunal’s decision, pronounced on June 4, 2025, hinged on the crucial fact that the confiscation of the underlying export consignment, which was the prerequisite for the penalty, had already been set aside in a separate appeal.

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