Sending Imported Goods To Job Worker For Manufacture Does Not Defeat Exemption Benefit: CESTAT Chennai Grants Relief To Godrej

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that merely sending imported goods to a job worker for manufacture does not violative exemption conditions. Since there was no allegation of the sale of goods, the exemption of benefit under Notification No. 73/2006-Cus dated 10.07.2006 cannot be denied to Godrej. Notification No. 73/2006-Cus dated 10.07.2006, provided customs duty exemption for goods imported against duty credit certificates from ...

Customs Act | Penalty U/S 112 Cannot be Imposed Solely On Co-Accused's Statement Without Corroborative Evidence: CESTAT Kolkata

The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that a mere allegation by a co-accused that the assessee handed over gold cannot serve as the sole basis for imposing a penalty under Section 112 of the Customs Act. The bench clarified that in the absence of any independent corroborative evidence supporting this claim, the statement of the co-accused is not sufficient to implicate the assessee in the said offence. Section 112 of India's Customs Act,...

Customs Act | Gujarat High Court Reiterates Mandatory Cross-Examination Under Section 138B, Quashes Penalty Order

The Gujarat High Court has held that reliance on statements of witnesses without allowing the manufacturer opportunity to cross‑examine, while ignoring those statements that testified in favour of the manufacturer, violates principles of natural justice. In a judgment delivered on November 25, 2025 Justice A.S. Supehia and Justice Pranav Trivedi quashed the penalty order and culled-out 8 quintessential features of Section 138B of the Customs Act, 1962, particularly, clauses (a ) and (b)...

Service Tax | Tax Paid Under Wrong Service Category Cannot Be Demanded Again: CESTAT Mumbai

The Mumbai Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) has set aside a service tax demand raised against the assesse, holding that once service tax has already been paid under the Reverse Charge Mechanism, merely under a wrong service category, the department cannot demand the same tax again.A Bench comprising Dr. Suvendu Kumar Pati (Judicial Member) allowed the assessee's appeal and quashed the order passed by the Commissioner (Appeals), granting...

Service Tax Cannot Be Levied On Membership & Participation Fees Paid To Foreign Associations Before 01.07.2012: CESTAT Chennai

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that service tax cannot be levied on membership and participation fees paid to foreign associations such as International Packaging Group (IPG) or International Packaging Forum Network (IPFN) for the period prior to 01.07.2012. P. Dinesha (Judicial Member) and Vasa Seshagiri (Technical Member) stated that the demand for the period prior to 1.7.2012 on IPG/IFPN is unsustainable as there was no...

Customs | Import Duty Must Be Determined At Time Of Import, Not On Later Sale Price: CESTAT Chennai

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that customs duty is required to be assessed on the transaction value declared at the time of import, as reflected in the supplier's invoice. Any subsequent sale or higher remittance made after the import cannot be relied upon to reject the declared value. P. Dinesha (Judicial Member) and Vasa Seshagiri Rao (Technical Member) examined whether the addition under the guise of short-payment of duty,...

Customs | Face Recognition Access Control Systems Qualify As Automatic Data Processing Machines; NIL Duty Benefit Allowed: CESTAT Kolkata

The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that Face Recognition Access Control Systems perform data processing functions, such as data storage, read-write memory operations and automated processing, and therefore qualify as an Automatic Data Processing Machine under CTH 8471. The bench clarified that these systems are eligible for NIL customs duty exemption. R. Muralidhar (Judicial Member) and K. Anpazhakan (Technical Member) noted that...

Third-Country Invoicing Inapplicable For Electronic/Non-Electronic Toy Parts From China For Preferential Customs Duty Benefit: Mumbai AAR

The Mumbai, Customs Authority for Advance Ruling (CAAR) has clarified that there's no concept of third-party invoicing or third-country invoicing or third-country trade under the Rules for Determination of Country-Of-Origin under the Asia Pacific Trade Agreement (APTA) for imports of electronic or non-electronic toy-parts from China when Swiss supplier invoices Jparks India. In a ruling dated December 11, 2025 Shri. Prabhat K. Rameshwaram rejected Applicant's reliance placed on Circular...

Third-Country Invoicing Inapplicable For Electronic/Non-Electronic Toy Parts From China For Preferential Customs Duty Benefit: Mumbai AAR

The Mumbai, Customs Authority for Advance Ruling (CAAR) has clarified that there's no concept of third-party invoicing or third-country invoicing or third-country trade under the Rules for Determination of Country-Of-Origin under the Asia Pacific Trade Agreement (APTA) for imports of electronic or non-electronic toy-parts from China when Swiss supplier invoices Jparks India. In a ruling dated December 11, 2025 Shri. Prabhat K. Rameshwaram rejected Applicant's reliance placed on Circular...

Delhi HC To Hear IndiGo's Plea For ₹900+ Crore IGST & Customs Duty Refund On Re-Imported Aircraft Parts; Customs Alleges No Double Levy

The Delhi High Court is set to hear a plea by Interglobe Aviation Limited (Indigo) over denial of an estimated refund of over Rs. 900 crores of Integrated Goods and Services Tax (IGST) and Customs duty on re-imported aircraft parts that were repaired abroad. The Customs Writ Petition filed on December 11, 2025 was mentioned before a Bench comprising Justice Prathiba M. Singh and Justice Shail Jain. As a common practice in the Aviation sector, aircraft components overseas are sent for...

Delhi High Court Flags Validity Of Reports In IGST Refund Denial On Export Of Mouth Fresheners/Pan Masala; Directs Expeditious Examination

The Delhi High Court in a matter involving export of mouth freshner/pan masala, where two differing Test Reports were issued and refund of Integrated Goods and Services Tax (IGST) was denied, has flagged validity of Central Revenues Control Laboratory (CRCL) test reports. Justice Prathiba M. Singh and Justice Shail Jain were hearing writ petitions filed by Exporters/Petitioners of tobacco products including pan masala and mouth fresheners who had challenged the letter issued by Customs...

Customs Act | Mens Rea Mandatory For Penalty U/S 114AA; Assessee Cannot Be Punished On Assumptions: CESTAT Chennai

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that a penalty under Section 114AA of the Customs Act cannot be imposed unless the department proves mens rea and a clear act of abetment with cogent evidence. The Tribunal clarified that Section 114 has a penal character of being a penalty in personam, placing the burden squarely on the Customs Department to establish the guilt. Section 114AA of the Customs Act, 1962, penalises the use of false...