Mismatch in Gold Dore Content Not Sufficient Proof for Customs Duty Evasion

Naresh Vijayvargiya Vs Principal Commissioner of Customs (CESTAT Delhi)

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Delhi, has set aside a penalty of Rs. 50 lakhs imposed on Naresh Vijayvargiya, former Chief Financial Officer of MMTC-Pamp India Pvt. Ltd., in a case involving alleged customs duty evasion on imported gold dore bars. The tribunal ruled that a mere mismatch in gold content between initial and final invoices, without proof of a conscious effort to evade duty, is not sufficient to attract penalty under Section 112(a)(ii) of the Customs Act, 1962.

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