CUSTOM&EXCISE&SERVICE TAX
Supreme Court Issues Notice To IndiGo On Plea Of Customs Dept & GST Council Against Ruling On IGST Exemption For Imported Parts
The Supreme Court on Monday sought a response from IndiGo's parent company, InterGlobe Aviation, on a petition filed by the Customs Department challenging a Delhi High Court ruling that exempted the airline from paying Integrated Goods and Services Tax (IGST) on imported aircraft parts that were repaired and serviced abroad.A Bench comprising Justice BV Nagarathna and Justice R Mahadevan issued notice to InterGlobe Aviation while hearing the department's plea against the March 2024 judgment of...
Delhi High Court Orders Economic Offences Wing To Probe Alleged Forgery Of Customs Stamps At Airport
The Delhi High Court has asked the Economic Offences Wing of the Delhi Police to conduct an enquiry into alleged forgery of Customs stamps at the Delhi International Airport.A division bench comprising justices Prathiba M. Singh and Shail Jain passed the direction after the Department claimed that the Customs stamp on an air traveller's representations in connection with their seized gold was fake.When an air traveller makes a representation to the Customs, the Department returns a receipt...
After Delhi High Court Nudge, Customs Dept Finalises Amendments To Baggage Rules, Seeks Time For Infrastructure Upgrade
The Customs Department recently informed the Delhi High Court that the Draft Baggage Rules (amending Baggage Rules, 2016) have been finalized and are ready to be issued.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta were further informed that the Department is awaiting upgradation of IT infrastructure, for effective implementation of the new rules.“Issuance of amended Baggage Rule without proper regulation and IT Infrastructure will again give rise to litigation thus...
Penalty Can Be Imposed On Courier Agency For Not Reporting Suspicious Consignment To Customs: Delhi High Court
The Delhi High Court has held that the Commissioner of Customs can impose a penalty on a courier service which fails to report suspicious consignments being sent or received from abroad.A division bench comprising Justices Prathiba M. Singh and Shail Jain observed that courier agencies have a responsibility to ensure that whenever there are any suspicious courier packets being delivered or being transacted through them, due diligence ought to be exercised and if there is any suspicion, the same...
'Same Order Challenged Before Multiple Benches': CESTAT Refers Matter To President For Constitution Of Special Bench
The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has directed the Registry to refer two appeals to the President of CESTAT for the constitution of a Special Bench to hear and decide the matter against a common order. Citing the principle of “comity of Courts,” the bench, consisting of Ajayan T.V. (Judicial Member) and M. Ajit Kumar (Technical Member), observed that since the Ahmedabad Bench had already heard an appeal from the same impugned order, it...
Does CESTAT Have Jurisdiction To Hear Challenge To Central Govt Notifications Imposing Anti-Dumping Duty? Delhi High Court To Examine
The Delhi High Court is set to examine whether the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) has jurisdiction to hear challenges to notifications issued by the Central Government, imposing Anti-Dumping Duty.Anti-dumping investigation determines whether a product is being dumped in the country at a lower price, causing material injury to the domestic industry. If found true, the Directorate General of Trade Remedies (DGTR), which is a Central body, may impose anti-dumping...
Scope Of Appeal Is Limited U/S 28KA Customs Act; Advance Ruling Binding Unless Arbitrary: Madras High Court
The Madras High Court has held that the scope of appeal is limited under Section 28KA of the Customs Act and an advance ruling is binding unless it is palpably arbitrary or irrational. Section 28KA of the Customs Act, 1962 provides that an appeal can be filed to the appellate authority against any ruling or order passed by the Authority within sixty days from the date of communication of such ruling or order. Justices S.M. Subramaniam and C. Saravanan stated that the scope of...
No Export Duty On Transfer From Domestic Tariff Area To SEZ : Supreme Court Dismisses Union's Appeal Against Adani Power
Observing that the movement of goods from a Domestic Tariff Area (DTA) to a Special Economic Zone (SEZ) is a domestic supply and not an export outside India, the Supreme Court provided relief to Adani Power Ltd. and other entities from paying export duty under the Customs Act, 1962, for the movement of goods from DTA to SEZ. A bench of Justice BV Nagarathna and Justice R Mahadevan dismissed the Union of India's appeal against a judgment of the Gujarat High Court which ruled that export duty...
One Rolex Watch Can Be For Personal Use, Not 'Commercial Quantity': Delhi High Court To Customs
The Delhi High Court has made it clear that one Rolex watch seized by the Customs Department from an air passenger cannot be called 'commercial quantity'.It thus cautioned the Department's Adjudicating Authority against “error” on its part, in declaring the same as commercial.“Clearly, this Court is of the view that one Rolex watch cannot be held to be a commercial quantity and there is no reason as to why the same cannot be kept for personal use,” a division bench of Justices Prathiba M. Singh...
Customs Act | Provisional Release Of Seized Object Won't Extend Timelimit For Issuing Show Cause Notice In Pre-2018 Cases : Supreme Court
The Supreme Court recently upheld a Delhi High Court order directing release of an imported Maserati car seized by the Directorate of Revenue Intelligence (DRI), upholding the HC's view that failure to issue a show-cause notice within time prescribed under the Customs Act, 1962 entitles the person to release of the seized goods.A bench of Justice JB Pardiwala and Justice Sandeep Mehta further held that provisional release of seized goods under Section 110A of the Customs Act does not stop the...
Compensation For Breach Of Agreement To Sell Land Not Taxable As Declared Service U/S 66E(e) Of Finance Act: CESTAT
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that compensation for breach of agreement to sell land is not taxable as declared service U/S 66E(e) of the Finance Act. Section 66E(e) of the Finance Act, 1994 lists out “declared services” for the purpose of levy of service tax. It deems 'Agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act' as a declared service. Binu Tamta (Judicial...