CESTAT Dismisses Customs Appeals on Confiscated Gold Bars as Penalty Below ₹50 Lakh Threshold [Read Order]

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi Bench, dismissed an appeal filed by the Customs, wherein the penalty for confiscated gold bars was less than INR 50 lakhs, lesser than the monetary threshold.

The Revenue department preferred an appeal before the CESTAT for the order passed by the Commissioner of Customs (Appeals), IGI Airport, New Delhi. The main issue involved is related to the imposition of penalties on the respondents under Section 112 (b) and Section114AA of the Customs Act, 1962.

For the Revenue, counsels Anand Narayan and Rohit Issar were present. On the other hand, for the respondent(s), Krishna Pratap Singh argued their defence.

For filing an appeal, the CESTAT concerned itself with the powers it derives from Section 131BA of the Customs Act. CESTAT noted that the latest instruction issued by the Central Board of Indirect Taxesand Customs (CBIC) mentioned that the threshold monetary limit of INR 50 lakhs has been prescribed, below which an appeal shall not be filed before CESTAT.

The subject matter of imposition of penalties under Sections 112(a) and 114AA are the confiscation of gold bars and thus, the appeal was deemed liable to be dismissed. However, it was pointed out that in the instructions, there is mention of agitating the matter of less than INR 50 lakhs before Appellate Forum in certain categories which are not applicable in the present case.

The bench of S.K. Mohanty (Judicial Member) took into consideration that the dispute is concerning the penalties involved which are less than INR 50 lakhs and referred to the threshold of monetary limit as per the instruction dated 02.11.2023 Accordingly, the appeals filed by the Revenue were dismissed under the litigation policy of the Government.

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