Customs Appeals Rejected as Identical Overvaluation Allegations Were Already Decided Earlier: CESTAT Mumbai

Commissioner of Customs Vs Adani Enterprises Limited (CESTAT Mumbai)

The Mumbai Bench of CESTAT dismissed six appeals filed by the Commissioner of Customs challenging an order of the Principal Commissioner of Customs (Adjudication) dated 21.12.2023, which had dropped proceedings initiated through a show cause notice dated 31.08.2016 against six entities. The Tribunal held that the issues raised in the present proceedings had already attained finality through earlier adjudications arising from the same investigation and based on the same evidentiary material.

The Tribunal noted that a common investigation conducted by the Directorate of Revenue Intelligence had resulted in three separate show cause notices. The first two notices, both dated 15.05.2014, had been adjudicated by the Additional Director General, DRI, who dropped the proceedings. Appeals filed by the Department against those orders were dismissed by the Tribunal, and subsequent civil appeals before the Supreme Court were also dismissed on 27.03.2023. Review petitions filed by the Department were later rejected.

The Principal Commissioner had found that the third show cause notice dated 31.08.2016 emanated from the same investigation, relied on the same documents, and involved substantially similar allegations as the earlier notices. The Tribunal observed that these findings had not been disputed by the Department. In view of the finality attached to the earlier proceedings, the Tribunal held that the third show cause notice had rightly been discharged by the Principal Commissioner.