Supreme Court Allows Customs Duty Exemption To LG Electronics For Smart Watch Import From Korea

The Supreme Court recently granted relief to LG Electronics India from paying customs duty on imported 'G Watch W7' smartwatches from South Korea, holding that a certificate of origin from a country with which India has a full customs duty exemption agreement is sufficient to claim such exemption. A bench of Justice JB Pardiwala and Justice Sandeep Mehta heard the LG Electronics appeal against the Customs, Excise and Service Tax Appellate Tribunal (“CESTAT”) order, that declined LG's plea for...

Delhi High Court Directs Customs Department To Set Up Passenger Grievance Counters At Delhi Airport

The Delhi High Court has asked the Commissioner of Customs at the IGI Airport to create some counters of the Department outside the airport's security zone, for easy access of aggrieved passengers.The direction was made by a division bench of Justices Prathiba M. Singh and Shail Jain after the Petitioner, a resident of Kuwait whose gold cut piece was seized by the Department, complained that since the counters of the Customs Department are in the secured area, it is not easy to access them for...

Incorrectly Declaring Indian Goods As 'Made In China' Contrary To Public Interest: Delhi High Court Denies Relief In Customs Case

The Delhi High Court has held that misleading consumers about locally manufactured goods by labelling them as 'Made in China' or in some other foreign country is contrary to public interest.The bench was dealing with a Customs case whereby Petitioner's goods (mobile tempered glass) bearing 'Made in China' mark were seized by the Department in a raid.The Department had allowed provisional release of the goods subject to submission of assessable value i.e., Rs. 56,03,995/- bonds and bank guarantee...

Refund Can't Be Rejected On Grounds Of Classification Once Tax Liability Is Settled: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that refund cannot be rejected on grounds of classification once tax liability is settled. Dr. Rachna Gupta (Judicial Member) and R. Priya (Technical Member) stated that refund under Section 11B of Central Excise Act read with Section 83 of the Finance Act, 1994, is permissible subject to two conditions: - the claim should have been raised before one year from the relevant date; and the...

CESTAT Can't Admit Appeal Without Pre-Deposit But High Court Can Waive It In 'Rare' Circumstances: Delhi High Court

The Delhi High Court has held that the provision of pre-deposit for preferring an appeal before the Central Excise and Service Tax Appellate Tribunal is mandatory and the forum has no power to admit any appeal without the same.However, a division bench of Justices Prathiba M. Singh and Shail Jain further added that the High Court may, in rare circumstances, waive off the said deposit. It observed,“CESTAT does not have the power to admit appeal without the pre-deposit, however, this Court in...

Customs Broker's Failure To Oversee Warehousing Of Re-Export Goods Leading To Sale In Local Market Is 'A Clear Infraction': Delhi HC

The Delhi High Court has held that a Customs Broker must diligently perform its responsibilities under the 2018 Licensing Regulations however, any failure thereof must be met with a proportionate punishment.While dealing with a case where the broker's license was suspended due to alleged failure to oversee warehousing of goods meant for re-export, leading to their sale in the domestic market, a division bench of Justices Prathiba M. Singh and Shail Jain observed,“There is no doubt that Customs...

Delhi High Court Orders Customs To Release Padma Bhushan Awardee's Imported Artwork Amidst Dispute Over Valuation

The Delhi High Court has ordered the Customs Department to release the artwork of Padma Bhushan awardee Late BC Sanyal, seized amid a dispute surrounding its valuation.A division bench of Justices Prathiba M. Singh and Shail Jain observed there is no conclusive proof that the artwork was made in Pakistan, as claimed by the Department.“The bill of entry itself reveals that the import is being effected from Dubai,” it observed.The Court was dealing with a petition filed by the proprietor of M/s...

Preloaded Software On Imported Navigation Devices Liable To Customs Duty: CESTAT

The Bangalore Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that value of preloaded software to be included in assessable value of imported navigation devices and is liable to customs duty. Dr. D.M. Misra (Judicial Member) and Pullela Nageswara Rao (Technical Member) were addressing the issue of whether the value of software preloaded/ etched into the imported navigation systems, be included in the assessable value of the said navigation systems and...

Assessee Liable To Pay Interest On Short Reversal Of Common Cenvat Credit Used For Exempted Services: CESTAT

The Bangalore Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that assessee liable to pay interest on short reversal of common cenvat credit used for exempted services. The question before P.A. Augustian (Judicial Member) and R. Bhagya Devi (Technical Member) was whether interest liability arises on the short reversals of the cenvat credit availed by the assessee on the exempted services. In this case, the assessee/appellant being an 100% Export...

Passenger's Non-Appearance For Appraising Seized Goods Doesn't Stop Limitation For Issuing SCN: Delhi High Court Tells Customs

The Delhi High Court has made it clear that the Customs Department cannot exceed the limitation period prescribed for issuance of show cause notice after detention of goods, merely on the ground that the person from whom goods were seized did not appear for appraisement.A division bench of Justices Prathiba M. Singh and Shail Jain observed,“non-appearance for appraisement does not stop the limitation for the issuance of the SCN in terms of Section 110 of Customs Act, 1962.”Section 110 of the...

Govt Is Promoting Start-Up Culture, Customs Should Be Sensitive In Proceedings Against Them: Delhi High Court

The Delhi High Court has asked the Central Board of Indirect Taxes and Customs to consider whether some “preferential treatment” ought to be given to Start-ups and MSMEs in terms of timelines, warehousing and provisional release in cases of misdeclaration of goods, especially in case of low value consignments.A division bench of Justices Prathiba M. Singh and Shail Jain observed that considering the prevailing policy in India to encourage start-ups and MSMEs, the Customs Department also needs to...

Refund Of CVD & SAD Paid After GST Introduction Maintainable U/S 142(3) Of CGST Act: CESTAT

The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that refund of CVD (Countervailing Duty) & SAD (Special Additional Duty) paid after GST introduction maintainable U/S 142(3) CGST Act. Dr. Ajaya Krishna Vishvesha (Judicial Member) was addressing the issue of whether refund claim is admissible under Section 142 (3) of CGST Act, 2017 in lieu of CENVAT credit of CVD & SAD, where such CVD & SAD are paid after introduction of GST due...