AT dismissed appeals challenging the Additional Director of ...

Enforcement Directorate's FEMA Charges Dropped After Lab Reports Confirm Valid Fe Content Declaration in Export Pricing Case

January 31, 2025

Case Laws     FEMA     AT

AT dismissed appeals challenging the Additional Director of Enforcement's order dropping FEMA charges against respondent companies. The charges stemmed from DRI's Show-Cause Notice under Customs Act alleging customs duty evasion through value suppression of export goods. AT found the Fe content declaration was properly based on government-accredited lab reports, following prescribed procedures for independent certification and sample testing. The pricing variation fell within acceptable tolerance range for arm's length transactions. With the underlying customs case nullified and no evidence of lab report manipulation, AT upheld the original order dropping FEMA charges, noting that challenging government lab reports requires demonstrating they are palpably wrong, citing established precedent.

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