Can Presumption That Seized Goods Are Smuggled Apply To 'Mastermind' Not In Physical Possession? Delhi HC To Examine

The Delhi High Court is set to examine whether the statutory presumption under Section 123 of the Customs Act can apply to a person alleged to be the “mastermind” or financier who is not in physical possession of the seized goods.The Division Bench of Justices Avneesh Jhingan and Shail Jain has framed the question while hearing appeals filed by the Principal Commissioner of Customs (Preventive) against CESTAT orders.Section 123 of the Customs Act provides for a statutory shift in the burden of...

CESTAT Allahabad Sets Aside Value Enhancement, Finds Import Data Missing From Acceptance Letters

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Allahabad has recently refused to treat an importer's written acceptance of enhanced customs values as conclusive after finding that the letters did not contain the contemporaneous import data cited as the basis for the enhancement.“Given the language as noted in some of the letters as written by the appellant and placed above, there is a wide gap which has not been bridged by the Revenue, in the matter. The contents of this...

Karnataka High Court Dismisses Revenue Appeal Against Microsoft India In CENVAT Refund Case

The Karnataka High Court has dismissed the Revenue's appeal against a tribunal order holding that Microsoft India (R&D) Pvt. Ltd. was entitled to a cash refund of accumulated CENVAT credit on services provided to its overseas entities. A Division Bench of Justice R. Devdas and Justice K. Manmadha Rao was hearing the appeal against the Customs, Excise and Service Tax Appellate Tribunal's (CESTAT) December 9, 2024 order. The tribunal had held that the services provided by Microsoft India to...

Inadmissible Electronic Data, Computer Printouts Cannot Determine Excise Duty Liability: CESTAT Chennai

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai, has held that electronic data and computer printouts cannot form the basis for determining Central Excise duty liability unless the statutory requirements for their admissibility are met.The tribunal discarded electronic records relied upon to quantify alleged clandestine manufacture and removal of TMT bars by Sri Kamalaganapathy Steel Rolling Mills Ltd. It set aside the order to the extent that the demand was quantified...

Madras High Court Sets Aside Bank Guarantee Condition For Provisional Release Of ASC Impex Goods

The Madras High Court on 18 September set aside a bank guarantee condition imposed for provisional release of imported Polyester Woven Fabric with PVC Coating detained from ASC Impex over a classification dispute. Justice Hemant Chandangoudar directed Customs to release the goods on payment of applicable duty and execution of a personal bond for the differential duty. The Bench held: “The purpose of provisional release is to ensure that the goods are not unnecessarily detained during the...

Madras High Court Permits Mother, Minor Daughter To Seek Return Of Gold Jewellery Detained At Trichy Airport

The Madurai Bench of the Madras High Court has allowed a mother and her minor daughter to approach the Customs authorities for the return of gold jewellery detained at Trichy Airport.The Court directed them to submit an application before the Customs authorities seeking return of the jewellery.Justice C. Saravanan passed the order while disposing of petitions filed by the mother and daughter challenging the detention of gold jewellery weighing 22.20 grams and 30.50 grams, valued at ₹2.89...

Indian Exporter Not Liable To Pay Service Tax Under Reverse Charge On Foreign Bank Charges: CESTAT Delhi

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi, has held that an Indian exporter is not liable to pay service tax under the reverse charge mechanism on charges deducted by foreign banks from export proceeds. The tribunal held that the services were received by the Indian bank, not the exporter, which had no contractual relationship with the foreign bank. A coram comprising Judicial Member Somesh Arora and Technical Member Sanjiv Srivastava allowed Sarda Energy and...

Licence Fees Paid By Odisha Beverages Corp To State Government Not Consideration For Service: CESTAT Kolkata

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Kolkata has held that licence fees and additional licence fees paid by Odisha State Beverages Corporation Limited to the Government of Odisha do not constitute consideration for any taxable service.A coram comprising Judicial Member R. Muralidhar and Technical Member K. Anpazhakan allowed the appeal filed by the state government undertaking. It set aside the service tax demand of ₹53.88 crore, along with interest and penalties.The...

NVOCC Cannot Charge Demurrage On Customs-Seized Goods Despite 60-Day SCMTR Rule: CESTAT Mumbai

On 24 September, the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai held that a Non-Vessel Operating Common Carrier (NVOCC) acting as a Customs Cargo Service Provider (CCSP) cannot charge rent or demurrage on goods seized or detained by Customs, even if the Sea Cargo Manifest and Transhipment Regulations, 2018 (SCMTR) permit recovery of detention charges after 60 days in specified circumstances. A Bench comprising Judicial Member Ajay Sharma and Technical Member M.M....

Madras High Court Quashes ₹20 Lakh Penalty On Customs Broker, Finds No Proof Of Collusion

The Madras High Court on 17 September set aside the Rs. 20 lakh penalty imposed on Newport Shipping and Logistics, holding that the material relied upon by the Customs authorities did not establish the broker's knowledge, conscious involvement or collusion in the attempted export of prohibited bull/ox meat. Justice Hemant Chandangoudar observed that a Customs Broker cannot be held liable for abetment of the attempted export of prohibited goods merely on the basis of routine activities such as...

Customs Can Recover Differential Duty Without Challenging Importer's Self-Assessment: CESTAT Ahmedabad

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 23 September held that the Customs Department can demand differential duty under Section 28 of the Customs Act without first challenging an importer's self-assessment. A Bench comprising Judicial Member Dr. Ajaya Krishna Vishvesha and Technical Member Satendra Vikram Singh partly allowed an appeal filed by Famous Steel, observing that anti-dumping duty is a customs duty on which IGST is payable, while...

CESTAT Chennai Sets Aside ₹23.17 Crore Demand Against Toyota, Rejects Reclassification Of 226 Parts

On 23 September, the Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) set aside a Rs. 23.17 crore customs duty demand against Toyota Kirloskar Motor Pvt. Ltd. over the classification of 226 imported motor vehicle parts. It also held that the extended limitation period was unavailable and set aside the confiscation, Rs. 17 crore redemption fine and penalty imposed on the company.A Bench comprising Technical Member Vasa Seshagiri Rao and Judicial Member Ajayan T.V....