Customs | Drawback Cannot Be Denied On Grounds Of Alleged Forgery By Foreign Buyer Once Goods Are Exported: CESTAT

The New Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that drawback cannot be denied on the grounds of alleged forgery by a foreign buyer after goods are exported under the Customs & Central Excise Duties Drawback Rules 1995. The single bench consists of (Judicial Member) opined that any forgery, if revealed during a further investigation being committed by the Russian company vis-a-vis the Landing certificate in the light of Drawback...

Customs Act | Electronic Evidence From Unsealed CPU Without Certificate U/S 139C Cannot Form Basis Of Assessment: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that electronic evidence from an unsealed CPU without any Section 139C certificate under the Customs Act cannot form the basis of assessment. Dr. Rachna Gupta (Judicial Member) and P.V. Subba Rao (Technical Member) opined that the computer/ CPU was not sealed at the time of panchnama and was lying with the investigating agency for 47 days, after which it was first examined and then sealed,...

Customs | Confiscation, Penalty & Fine Can't Be Imposed On IGST Demand Arising From Breach Of Pre-Import Condition: CESTAT

The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that confiscation, penalty & fine cannot be imposed on IGST (Integrated Goods and Services Tax) demand arising from breach of pre-import condition under Customs Act. Ajay Sharma (Judicial Member) and C J Mathew (Technical Member) opined that the IGST demand arose because of the breach of the pre-import condition. Although IGST is payable for such a breach, no confiscation or penalty can be ...

Differential Duty Paid For Provisional Release Not Pre-Deposit; Refund Interest Payable Only At 6% U/S 27A Customs Act: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the differential duty paid for provisional release is not a pre-deposit. Hence, refund interest payable only at 6% U/S 27A Customs Act, not 12% U/S 35FF Central Excise Act. Dr. Rachna Gupta (Judicial Member) opined that all those goods were ordered to be released as per the provisions of the Customs Act, 1962, at the assessee's own request for provisional release of the goods. This ...

Supreme Court Dismisses Customs' Appeal Seeking Rs 93 Lakh Duty On Lulu Malls' Imported Trampolines

The Supreme Court recently (October 31) dismissed an appeal filed by the Customs Department challenging the classification and valuation of imported amusement equipment, including trampolines, by Lulu International Shopping Malls Pvt Ltd.A bench of Justices Pankaj Mittal and Prasanna B Varale held that there was no error in the classification of the trampolines and other equipment under the category of gymnastics equipment. The bench observed, “we do not find any infirmity in the...

Customs | AIFTA Exemption Cannot Be Denied Without Verifying Certificate Of Origin: CESTAT

The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the AIFTA (ASEAN-India Free Trade Agreement) exemption cannot be denied without verifying the certificate of origin. Ajay Sharma (Judicial Member) and C J Mathew (Technical Member) noted that there is no allegation, let alone ascertainment, that the 'certificate of origin' corresponding to each of the impugned consignments is not authentic or not issued by the competent authority. There is...

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...