Customs | FOB Value Determined Between Parties Protected By Privity Of Contract; Cannot Be Modified By Stranger: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the FOB (Free On Board) value determined between the parties is protected by privity of contract, and it cannot be modified by a stranger to the contract. Justice Dilip Gupta (President) and Hemambika R. Priya (Technical Member) opined that FOB value is the product of negotiations and deliberations between the parties to the contract, which value cannot be modified by any stranger to...

CENVAT Credit Rules | Variable 'P' Under Rule 6(3A) Refers Only To Common Credit, Not Total Credit, Prior To 01.04.2016: CESTAT

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that variable 'P' under Rule 6(3A) of CENVAT Credit Rules, 2004, refers only to common credit, not total credit, prior to 01.04.2016. P. Dinesha (Judicial Member) and Vasa Seshagiri Rao (Technical Member) were addressing the issue of whether, for the tax periods April 2012 to March 2014, the variable “P” in Rule 6(3A) of the CENVAT Credit Rules, 2004 would denote total credit or common credit....

SSI Exemption Can't Be Denied Merely For Using Common/Assigned Brand Names: CESTAT

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that SSI (Small Scale Industry) Exemption can't be denied merely for using common/assigned brand names. The Tribunal opined that once a brand name is legally assigned or transferred, the SSI unit becomes the “owner” of the brand. Therefore, it is no longer the “brand name of another person,” and the restriction in Condition No. 4 of Notification No. 8/2003-CE does not apply. The Tribunal...

Customs | Royalty For Technical Know-How Not 'Condition Of Sale' Even If Included In Value Of Imported Goods: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that royalty paid for technical know-how is not a 'condition of sale' merely because it is included in the value of imported goods. Justice Dilip Gupta (President) and Hemembika R. Priya (Technical Member) opined that both the Technical Agreements relate to transfer of technical know-how, amongst others, in the form of design sheets detailing manufacturing methods and specifications of raw...

CESTAT Quashes Excise Duty Demand Against Wipro Over Tamil Nadu Govt's Free Laptop Scheme

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT) in Chennai on Wednesday quashed the excise department's demand for additional duty from Wipro Ltd., ruling that the company's supply of laptops to the Tamil Nadu government for free distribution to students cannot be treated as a commercial sale and therefore cannot be taxed at retail price. A two-member bench comprising Judicial Member P Dinesha and Technical Member M Ajit Kumar said the case was covered by an earlier...

Customs Act | Excel Sheet Recovered From Assessee's Email Can Be Relied Upon For Valuation Even Without S.138C Certificate: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that an Excel sheet recovered from the email account of the assessee can be relied upon to determine the value of imported goods, even without a certificate under Section 138C of the Customs Act, 1962. Section 138C of the Customs Act, 1962 would apply if the information is printed from a computer, and the certificate should certify that the computer was being used for the purpose of business...

Advance Received Towards Sale Of Land Not Liable To Service Tax: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the amount of advance received by the assessee with respect to the sale of land is out of the scope of applicability of the provisions of the Finance Act, and hence, no service tax is leviable. Dr. Rachna Gupta (Judicial Member) and A.K. Jyotishi (Technical Member) stated that the assessee has successfully established that the activity undertaken with reference to the amount in question...

Crowd-Sourced Information Available On Platforms Like Wikipedia Cannot Be Relied Upon To Fasten Tax Liability: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that crowd-sourced information available on platforms like Wikipedia cannot be relied upon to fasten tax liability on the assessee. The Tribunal opined that Wikipedia is an open source information available online and anyone can write about the topic and anyone else can edit it. Thereafter, somebody else can further edit it. It is not the opinion of any one expert but is only crowd-sourced...

Customs Authorities Lack Jurisdiction To Issue Directions Under GST Law: Madras High Court

The Madras High Court recently held that Customs authorities have no jurisdiction to issue directions under the Goods and Services Tax (GST) law. The Court struck down a February 2021 public notice issued by the Chennai Customs that sought to regulate the GST treatment on auctioned cargo.A single bench of Justice N Anand Venkatesh ruled that such powers lie exclusively with authorities designated under the GST Act."It is not known as to where the 1st respondent gets the power and jurisdiction to...

Customs Housing Agent Can Be Made Liable For Wrongdoings Of Employees, Must Exercise Due Diligence: Delhi High Court

The Delhi High Court has made it clear that a Customs Housing Agent is responsible for the actions of its employees and it must exercise due diligence in supervising their activities.A division bench of Justices Prathiba M. Singh and Shail Jain further held that a CHA may be held accountable for the wrongdoings of its employee but, the punishment in that regard has to be proportionate.The observations come in an appeal preferred by a CHA against revocation of its license over misdeclaration in...

Customs Brokers Licensing Regulations | 'Offence Report Need Not Be Penal'; 90-Day Period Begins Only Upon Receipt Of Report: Madras High Court

The Madras High Court stated that the offence report under Regulation 17(1) Customs Brokers Licensing Regulations, 2018, need not necessarily have a penal connotation. Also, it stated that the 90-day limitation period begins only upon receipt of the offence report.The bench stated that, "the offence report must be received by the office of the licensing authority, and the limitation period will start running only from the date of its receipt. Even if the licensing authority can be attributed...

Delhi High Court Directs Customs To Ensure Strict Implementation Of Minimum Import Price On Soda Ash

The Delhi High Court has directed the Customs authorities to ensure strict implementation of the Minimum Import Price (MIP) imposed by DGFT on Soda Ash, warning of stringent action in case of any violations.A division bench of Justices Prathiba M. Singh and Shail Jain gave “clear directions to all the Customs Authorities…to ensure that the Notification No. 46 of 2024-25 along with Notification No.23 of 2025-26 shall be implemented strictly in letter and spirit. If any Commissionerate of Customs,...