Revenue Cannot Treat Turnover Mismatch As Duty Evasion Without Examining On Merits: CESTAT Mumbai

The CESTAT Mumbai has held that when an assessee shows sufficient cause for delay in filing an appeal within the statutorily permissible condonable period of 30 days, the Commissioner (Appeals) cannot reject the appeal on limitation without examining the merits. A Bench of the CESTAT comprising of Member (Technical) M.M. Parthiban was hearing the appeal, challenging the order of the Commissioner(Appeal) whereby appeal of the assessee was dismissed as time-barred by 26 days and thereby...

Delhi High Court Imposes ₹50K Costs On Customs For “Harassing” Companies Importing Body Massagers

The Delhi High Court has slammed the Customs Department for “unnecessarily harassing” two entities involved in import of body massagers.Petitioners' import goods were confiscated for alleged mis-declaration of sex toys as body massagers. While ordering their provisional release, the Court had previously asked the Department to come up with a uniform policy permitting or prohibiting the import of such products.The Department however sought a review of this direction.A division bench of Justices...

Customs | Oral Waiver Of SCN Untenable In Law, Continued Detention Of Goods Illegal: Delhi High Court

The Delhi High Court has held that continued detention or seizure of goods by the Customs Department would be untenable in law, where the Show Cause Notice or the personal hearing have been waived via an oral waiver.A division bench of Justices Prathiba M. Singh and Shail Jain was dealing with a challenge to detention of Petitioner's gold chain weighing 54 grams.Briefly put, Petitioner has residence certificate of Dubai. Her gold jewellery, which is stated to be a personal effect item, was...

Statement Made Before Customs Officer U/S 108 Customs Act Over Goods Seizure Not Admissible In Evidence: Delhi High Court

The Delhi High Court has held that statements made by an assessee to the Customs Department under Section 108 of the Customs Act 1962, upon seizure of its goods, is not admissible as evidence in court of law.“Statements under Section 108 would not be admissible in evidence,” said a division bench of Justices Prathiba M. Singh and Shail Jain.Section 108 deals with the power of customs officers to summon persons to give evidence and produce documents. It stipulates that any Gazetted Officer of...

S.110 Customs Act | Extension To Issue SCN Must Be Granted Before Expiry Of Initial Six-Month Period: Delhi High Court

The Delhi High Court has made it clear that the six-month extension contemplated under Section 110 of the Customs Act 1962 for issuance of a show cause notice after detention of goods by the Customs must be issued before expiry of the initial six-month window.For context, Section 110 deals with Seizure of goods. It stipulates that where any goods are seized, and no notice is given within six months of the seizure, the goods shall be returned. Provided that the Principal Commissioner may, for...

Delhi HC Allows Time-Barred Appeal Against Customs' Confiscation Of Gold, Says Traveller Cannot Be Left Remediless Due To Wrong Legal Advice

The Delhi High Court recently allowed an air traveller to prefer a time-barred appeal against confiscation of gold by the Customs Department, upon his arrival from Thailand.In doing so, a division bench of Justices Prathiba M. Singh and Shail Jain said, “the Petitioner cannot be rendered completely remediless in this matter as he may have proceeded on the legal advice.”The Petitioner had claimed that he was wrongly advised by the Customs Department that there is no remedy available, as absolute...

Supreme Court Leaves Open Question Whether Customs Can Seize Goods Which Left Port

The Supreme Court recently refused to entertain an appeal against the Customs, Excise and Service Tax Appellate Tribunal (“CESTAT”) view that once goods are cleared from the port, customs authorities lose their power to confiscate them for violations such as non-compliance with license requirements. However, the bench of Justices Manoj Misra and Ujjal Bhuyan left open the question whether the Customs Authorities would have a right to confiscate the goods after they had left the PortThe...

Peanut Butter Similar To Margarine; Not Exempt From Excise Duty: CESTAT

The Hyderabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the Peanut Butter is similar to Margarine in terms of usage, origin, fat content, etc. and therefore not eligible for excise duty exemption. Angad Prasad (Judicial Member) and A.K. Jyotishi (Technical Member) examined whether Peanut Butter could be considered similar to Margarine. If found similar, then it would not be exempt from excise duty; and if not similar, the exemption would...

Can Customs Issue SCN For IGST Recovery? Delhi High Court Issues Notice To Customs & GST Dept; Seeks Joint Affidavit

The Delhi High Court has issued notice in a writ petition against the Show Cause Notice by the Customs Department, instead of the GST Department, for recovery of Integrated Goods and Services Tax (IGST) amounting to about Rs. 5 lakhs from the exporter. The Division Bench comprising Justice Prathiba M. Singh and Justice Shail Jain has listed the matter for February 24, 2026 while observing that “However, insofar as the question as the inter-play between the provisions of the Customs...

Commission Earned By Indenting Agent To Foreign Group Entities Is 'Export Of Services': CESTAT Mumbai Sets Aside ₹2.77 Crore Service Tax Demand

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT) Mumbai has stated that the commission earned for acting as Indenting agent to its foreign group companies qualifies as 'Export of Services', and therefore is not liable to service tax under the Finance Act, 1994. A Division Bench comprising Member (Judicial) S.K. Mohanty and Member (Technical) M.M. Parthiban set aside the ₹2.77 crore service tax demand (along with interest and penalty) confirmed by the Principal...

Customs Cannot Take Independent View Against CESTAT Classification; Wheat Gluten Eligible For DFIA Exemption: Madras High Court

The Madras High Court has held that once CESTAT has classified wheat gluten as eligible for DFIA (Duty-Free Import Authorisation) exemption, Customs authorities are bound by those findings and cannot independently deny the exemption benefits. Justice N. Anand Venkatesh stated that the impugned orders have been passed only on the ground that Wheat Gluten is not covered under the DFIA Licence and, therefore, the assessee is not eligible to claim exemption. If the CESTAT has already...

Reconsidering Cap On Value Of Gold Jewellery Permitted At Airports: CBIC To Delhi High Court

The Central Board of Indirect Taxes and Customs has informed the Delhi High Court that it is considering increasing the cap on the value of gold that can be carried by a person travelling to India by air.Currently, the Baggage Rules 2016 permit any jewellery of 20 grams with a value cap of Rs. 50,000/- in case of a man and 40 grams with a value cap of Rs. 1,00,000/- in case of a woman to be cleared free of duty.A division bench led by Justice Prathiba M. Singh had earlier highlighted that this...