Shanti Swaroop Sharma Vs Principal Commissioner of Customs (CESTAT Delhi)
Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) Delhi has set aside penalties imposed on Shanti Swaroop Sharma and Sangeet Tuteja, directors of New Era Trading Pvt. Ltd., in a case involving alleged fraudulent availment of Focus Market Scheme benefits. The ruling, delivered on June 4, 2025, in the appeals of Shanti Swaroop Sharma and Sangeet Tuteja against the Principal Commissioner of Customs, centered on the admissibility of statements recorded under Section 108 of the Customs Act, 1962, as evidence.
The case originated from intelligence indicating that New Era Trading Pvt. Ltd., an exporter of readymade garments, was mis-declaring consignee countries to fraudulently claim benefits under the Focus Market Scheme. It was alleged that in connivance with Imran Mirza, proprietor of M/s Concorde Shipping and Logistics India, goods declared for Focus Market Scheme countries were instead diverted to Dubai. This was purportedly achieved by manually amending shipping bill details after “Let Export Orders” were issued. The Principal Commissioner of Customs had imposed penalties on Shanti Swaroop Sharma and Sangeet Tuteja under Section 114(iii) and Section 114AA of the Customs Act, asserting their involvement in preparing false information and abetting the mis-declaration to defraud the Exchequer. The Principal Commissioner’s order specifically highlighted Shanti Swaroop Sharma’s admission in a statement recorded under Section 108 of the Customs Act, identifying him as a “main mastermind and one of the beneficiaries.” Sangeeta Tuteja was also found liable for knowingly signing false export documents.
