2026-VIL-358-CESTAT-CHE-CU
  1. Home
  2. 2026-VIL-358-CESTAT-CHE-CU

CUSTOMS CESTAT Cases

Customs - Cancellation of DEPB Benefit and Confiscation of Goods - Exporter of galvanized steel structures for telecommunication and electricity transmission purposes – DRI issued notice alleging that the appellant had mis-declared the goods exported as "Galvanized Transmission Line Towers" instead of "Telecom Towers" to avail higher DEPB benefit - Respondent cancelled the Let Export Orders issued for the relevant Shipping Bills, directed re-assessment of the goods under Section 17 of the Customs Act, 1962, and held the goods liable for confiscation under Sections 113(d) and 113(i) of the Act - Whether the Customs authorities had the jurisdiction to deny the DEPB benefit granted by the DGFT and initiate proceedings for confiscation of goods and imposition of penalties – HELD - The the Customs authorities did not have the jurisdiction to unilaterally deny the DEPB benefit granted by the DGFT. The DGFT, being the licensing authority, is the competent authority to determine the eligibility for DEPB benefit and the Customs authorities are bound by the decision of the DGFT. The Customs authorities should have approached the DGFT to seek cancellation or modification of the DEPB benefit if they had any grievance. The Tribunal relied on various judicial precedents to conclude that the Customs authorities cannot question the validity of the DEPB scrips issued by the DGFT - the impugned order is set aside and the appeal is allowed - Whether the Respondent-Commissioner had the power to cancel the Let Export Orders (LEOs) and order re-assessment under Section 17 of the Customs Act – HELD - The Respondent-Commissioner lacked the authority to cancel the LEOs and order re-assessment under Section 17 of the Customs Act. The LEOs had been issued by the Proper Officer after being satisfied with the assessment, and the Respondent-Commissioner could have only exercised the revisionary power under Section 129D of the Act and directed the lower adjudicating authority to file an appeal to the Commissioner (Appeals). Further, the re-assessment under Section 17 could only be done for live consignments and not for goods that had already been exported.
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Weekly Tax Recap

By Kasi Viswanathan V

Weekly Summary

VIL Video

Analysis of Union Budget 2026-27:
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?