CESTAT Hyderabad Sets Aside Reclassification Of Jasmine Biotechnologies' Bio-Fertiliser Imports As Insecticides

The Hyderabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has recently set aside the reclassification of imports made by Jasmine Biotechnologies from bio-fertilisers to insecticides. It held that the Customs Department failed to establish through cogent, reliable and legally admissible evidence that the products were insecticides or prohibited imports. The Division Bench comprising Judicial Member Angad Prasad and Technical Member A.K. Jyotishi passed the order...

CESTAT Kolkata Sets Aside Confiscation Of Genuine Shoe Imports Found With Counterfeit PUMA, Converse Goods

The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has set aside Customs' confiscation of All Sky Marketing Pvt Ltd's All Sky, D&B and Eleprint branded shoe consignments. It held that the confiscation of those goods could not be sustained, noting that they were separately packed, were not used to conceal the infringing goods, and that the adjudicating authority had given no reasons for confiscating them. A coram comprising Judicial Member R. Muralidhar...

Mumbai CESTAT Quashes Customs Demands On SOL Mobiles, Says Phone Activation Is “Configuration”, Not “Use”

On 12 May, the Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) set aside the customs demands and penalties on SOL Mobiles Private Limited and its Vice-President (Finance & Accounts) Manjit Jha, holding that unlocking and activating mobile phones before export amounted only to “configuration” and not “use” under the Customs and Central Excise Duties Drawback Rules. Judicial Member S.K. Mohanty and Technical Member M.M. Parthiban held that the customs...

CESTAT Mumbai Quashes Recovery Against Hindustan Copper Over 23-Year Delay and No Show Cause Notice

The Mumbai Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) on 7 May set aside recovery proceedings against Hindustan Copper Ltd., holding that adjudication conducted nearly 23 years after the demand notice was issued was legally unsustainable and violated principles of natural justice. Judicial Member Ajay Sharma, allowed the appeal and set aside the Order-in-Appeal passed by the Commissioner of Customs (Appeals), Mumbai. The Tribunal held: “The department's...

Computer Cabinet Cases Are Not Incomplete Computers; CESTAT Allahabad Quashes Customs Action Against Importer

The Allahabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 5 May held that computer cabinet cases lacking essential components such as a CPU, RAM, and hard disk cannot be treated as incomplete or unfinished computer systems merely on account of the presence of other parts like motherboards, fans, wiring, and power supply units. Judicial Member P.K. Choudhary and Technical Member Rajeev Tandon allowed the appeal by Daya Exports and set aside confiscation of goods,...

Centre Raises Gold, Silver Import Duty To 15% From 6% Effective Today

The Central Government has increased the effective import duty on gold and silver to 15% from 6% through a set of customs notifications issued by the Ministry of Finance, with the revised rates taking effect from May 13. The revised duty structure doubles the basic customs duty on the two precious metals to 10% from 5%, while increasing the Agriculture Infrastructure and Development Cess to 5% from 1%, taking the overall effective levy to 15%. The changes were notified through Notification...

CESTAT Delhi Quashes Tax Demand Against IndiGo Holds Aircraft Generators Attract 18% IGST, Not 28%

The New Delhi bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has quashed tax demands and penalties against InterGlobe Aviation over the classification of aircraft generators imported for use in IndiGo aircraft. It held that generators used with turboprop and turbofan gas turbine engines cannot be classified as equipment used with spark-ignition or compression-ignition internal combustion engines, meaning they attract 18% IGST under the classification claimed by...

CESTAT Bangalore Holds Aerosol Generator Not Controlling Device, Allows ITC Appeal Against Higher Duty

The Bangalore Customs, Excise & Service Tax Appellate Tribunal (CESTAT) on 30 April held that no higher customs duty is payable on the imported “Monodisperse Aerosol Generator”, and set aside the Department's demand for differential duty along with interest and penalty. The Division Bench comprising Judicial Member P.A. Augustian and Technical Member Pullela Nageswara Rao was hearing ITC Limited's appeal against an order of the Commissioner (Appeals), which had upheld reclassification of...

Cut, Curved Molybdenum Sheets Are Finished Articles; CESTAT Delhi Upholds Higher Customs Duty On Siria Impex

Molybdenum sheets that are cut, curved and shaped for use in automobile lighting cease to be “sheets” and become finished articles, the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi has held.A bench of Judicial Member Dr. Rachna Gupta and Technical Member Hemambika R. Priya delivered the ruling.The tribunal allowed the department's appeals against Siria Impex Private Limited and restored the demand of differential duty along with the penalty. The dispute arose from...

Delhi High Court Dismisses Pleas Against Customs SCNs On AIFTA Benefits For Copper Imports

The Delhi High Court has dismissed as premature petitions challenging show cause notices denying duty benefits under the ASEAN-India Free Trade Agreement on copper imports from Vietnam for allegedly failing the 35% value addition requirement. A Division Bench of Justices V. Kameswar Rao and Vinod Kumar held that the petitions were not maintainable at this stage, noting that the challenge was to show cause notices which initiate adjudicatory proceedings and do not conclusively determine rights ...

Gold Chains In Running Lengths Are Jewellery, Not Semi-Manufactured Gold: CESTAT Bengaluru

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT) at Bengaluru has recently held that gold chains imported in running lengths are to be treated as articles of jewellery and not as semi-manufactured gold, ruling that minor processes like cutting and attaching hooks do not alter their essential character. A coram of Technical Member Pullela Nageswara Rao said the goods had already taken the form of finished jewellery: “I find that the goods as imported, 'gold neck chains' though...

Delhi High Court Refuses Writ Against Gold Chain Confiscation, Cites Alternate Remedy Under Customs Act

The Delhi High Court has recently refused to entertain a writ petition challenging the confiscation of a gold chain under the Customs Act, 1962, reiterating that writ jurisdiction under Article 226 cannot be invoked to bypass an available statutory remedy of appeal.A Division Bench of Justices Nitin Wasudeo Sambre and Ajay Digpaul dismissed the petition filed against an order confiscating a 100-gram gold chain from the Petitioner on his return to India from Bangkok.The petitioner was intercepted...