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Informative

Export of Counterfeit ‘VimalGutkha’ in Violation of Customs Act: CESTAT Reduces Penalty to ₹10 Lakh

Update / Judgement Date

20 Jan 2025

Source

Taxscan

Author

Team — WCP Legal Desk

Reading Time

1 min read

Excise, VAT & Custom

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) reduced the penalty in a case involving the export of counterfeit Vimalgutkha, which violated the Customs Act. The exporter had illegally shipped the counterfeit goods, causing harm to the legitimate market. CESTAT acknowledged the severity of the offense but considered the mitigating factors, including the lack of direct involvement in the production of counterfeit goods. The penalty was therefore reduced to ₹1 lakh, balancing the interests of law enforcement and the exporter’s circumstances.