CUSTOM&EXCISE&SERVICE TAX
“Customs Cannot Resort To Delaying Tactics”: Delhi High Court Slams Dept For Not Releasing Seized Goods Despite Court Order
The Delhi High Court has slammed the Customs Department for repeatedly delaying implementation of its orders for release of articles seized from passengers arriving from abroad.Calling out the authority's “delaying tactics”, a division bench of Justices Prathiba M. Singh and Renu Bhatnagar warned of “stringent action” along with imposition of costs on errant officials.“This Court repeatedly notices that various judgments and orders which are passed, especially order directing release of detained...
Centre Rationalises Drone Taxation: Uniform 5% GST, IGST & Customs Duty Relief For Flight Simulators
The Union Government has informed the Lok Sabha that drones across all categories will now attract a uniform 5% GST, following the recommendations of the 56th GST Council Meeting held on 03.09.2025, aimed at removing classification disputes and promoting ease of doing business in the aviation and emerging-technology sectors. Replying to Unstarred Question No. 708, the Minister of State for Civil Aviatio, stated that the GST Council's decision rationalises the earlier structure under...
Lower Conversion Factor Applicable For Timber Imports Before 11.5.2012: Kerala High Court Allows Refund Of Additional Customs Duty
The Kerala High Court has held that a lower conversion factor is applicable for timber imports made before 11.05.2012. Justice Ziyad Rahman A.A. examined the issue regarding the refund of additional customs duty paid for the import of timber from Myanmar and other foreign countries. The centre of controversy was the conversion factor to be applied for converting the Hoppus Ton, which is the traditional unit of volume applied in Myanmar for the measurement of logs, to the metric...
24K Oval Pendants Qualify As Gold Jewellery, Eligible For Duty Exemption: CESTAT Hyderabad
The Hyderabad Bench, Customs, Excise and Service Tax Appellate Tribunal (CESTAT) in a matter concerning import of oval shaped gold pendants, has favoured classification under Customs Tariff Heading (CTH) 7113 1910 as 'articles of jewellery' instead of CTH 7108 1300 as 'semi-manufactured gold' In a recent order dated November 28, 2025 the Bench comprising A.K. Jyotishi (Technical Member) and Mr. Angad Prasad (Judicial Member), examined the two competing tariff headings CTH 7108...
Notices Issued By Speed Post Requires Maintaining Tracking Details: Delhi High Court Sets Aside Customs Order
The Delhi High Court in a writ petition pertaining to service of notice through speed post where delivery reports could not be found, sets aside ex-parte demand order creating a demand to the tune of Rs. 1 crore. In an order dated November 24, 2025 the Bench comprising Justice Prathiba M. Singh and Justice Renu Bhatnagar examined whether notices for personal hearing (Jan–Mar 2024) were properly served. On the aspect of service of notice, the High Court remanded the matter back to the ...
Central Excise Exemption For Cotton Fabrics Not Available If Any Interlinked Process Uses Power : Supreme Court
The Supreme Court has held that manufacturers cannot claim central excise duty exemption for processed cotton fabrics if power is used at any stage of the manufacturing chain, even when the work is carried out through separate units. The Court restored a duty and penalty demand that had been set aside by the Customs, Excise and Service Tax Appellate Tribunal (CESTAT).To claim excise duty exemption for 'cotton fabrics' processed without the aid of power or steam, the manufacturing stages must be...
Bombay High Court Restores Registration Of Imported Car, Says RTO Cannot Ignore Customs Settlement Commissions' Findings
The Bombay High Court has held that authorities cannot override or ignore the findings of the Customs Settlement Commission while taking administrative action. The Court ruled that once the Commission accepts the disclosure, settles duty liability and grants immunity under Section 127H of the Customs Act, its order becomes final and conclusive under Section 127J, and no other authority can indirectly reopen the customs issue. A bench of Justice N.J. Jamadar while hearing the writ...
'Writ Not Maintainable In Face Of Disputed Ownership': Delhi High Court In Customs Gold Confiscation Case
The Delhi High Court recently refused to entertain a writ petition challenging confiscation of an air travellers' gold jewellery by the Customs, citing disputed ownership of the gold.A division bench of Justices Prathiba M. Singh and Renu Bhatnagar observed,“The foundational facts of the petition itself would be different in as much as the detention receipt has been issued only to one lady but the gold is claimed by three ladies. The ownership of these bangles would have to be determined. These...
Admission Solutions By TC Global To Foreign Universities Not 'Intermediary Service': Delhi High Court Upholds CESTAT Order
The Delhi High Court has held that TC Global, operating as an App-based platform offering admission support solutions like promotional and marketing services, advertisements, roadshows, fairs, counselling to foreign universities, against payment in foreign exchange would qualify as 'Export of Service' instead of 'Intermediary Service'. In a judgment dated November 28, 2025, the Division Bench, comprising Justice Prathiba M. Singh and Justice Renu Bhatnagar affirmed CESTAT Delhi order...
Sales Tax Discharged At NPV Under State Incentive Scheme Not Addable To Transaction Value For Excise Duty: CESTAT Mumbai
The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Mumbai has held that sales tax deferred under a State incentive scheme and later discharged at Net Present Value (NPV) cannot be treated as “sales tax not paid” for the purpose of including it in the transaction value for levy of Central Excise duty. A Division Bench of C.J. Mathew (Technical Member) and Ajay Sharma (Judicial Member) allowed the appeal filed by the assessee and set aside the demand raised under Section...
Customs Can't Make Passengers/Lawyers Sign Waiver Of SCN Or Hearing At Goods Appraisement Stage: Delhi High Court
The Delhi High Court has made it clear that the Customs Department cannot make a passenger or his lawyer sign an undertaking for waiver of show cause notice or personal hearing, when they appear for appraisement of seized articles.A division bench of Justices Prathiba M. Singh and Renu Bhatnagar made the observation while dealing with an NRI's plea, whose gold chain was seized by the Customs on his arrival from Saudi Arabia.The Petitioner contended that neither any SCN was issued not personal...