Topic

Undervaluation

2 articlesLatest May 2026
Customs Act Sections 112(a) & 114AA | Foreign Director Liable for Dual Invoicing Undervaluation Even Without Indian Residency : CESTAT Hyderabad
Case Law Analysis
|Custom, Excise & Service Tax Tribunal

Customs Act Sections 112(a) & 114AA | Foreign Director Liable for Dual Invoicing Undervaluation Even Without Indian Residency : CESTAT Hyderabad

CESTAT Hyderabad has ruled that a foreign director who orchestrates dual invoicing to suppress import values for Indian customs purposes incurs personal penalty liability under the Customs Act, regardless of territorial presence. This sets a critical precedent for global supply chain actors, confirming that facilitation of customs fraud from abroad triggers Indian enforcement jurisdiction.

Section 112(a) Customs Act | Penalty Not Imposable on Non-Importer Without Evidence of Collusion or Undervaluation : CESTAT
Case Law Analysis
|Custom, Excise & Service Tax Tribunal

Section 112(a) Customs Act | Penalty Not Imposable on Non-Importer Without Evidence of Collusion or Undervaluation : CESTAT

CESTAT quashed a ₹20 lakh penalty against a non-importer under Section 112(a) of the Customs Act, holding that mere association with an importer is insufficient to impose liability for undervaluation without proof of active participation, collusion, or intent. This clarifies the scope of personal liability for third parties in customs fraud cases, protecting innocent business associates from vicarious penalties.

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