Proceedings Under Rule 16/16A Drawback Rules Are Merely Execution Proceedings; Cannot Modify Value In Shipping Bills: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that proceedings under Rule 16/16A Drawback Rules are merely execution proceedings; cannot modify value in shipping bills. Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) stated that the proceedings to recover the drawback under Rules 16/16A of the Drawback Rules are in the nature of execution proceedings, and they cannot be used to modify the value or any other...

Incorrect Declaration In Bill Of Entry Attracts Penalty U/S 114AA Of Customs Act: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) stated that imports and filing of the Bill of Entry are transactions of business under the Customs Act. Section 114AA would squarely apply to those transactions. In this case, the importer filed a Bill of Entry to clear goods imported by it and self-assessed the duty payable on them. The department examined...

IRCTC's Licensing For Operation Of Food Plazas Not Liable To Service Tax Under 'Renting Of Immovable Property': CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that IRCTC's (Indian Railway Catering & Tourism Corporation Ltd.) licensing for the operation of food plazas is not liable to service tax under 'renting of immovable property'. The Tribunal observed that the agreement was purely related to the transaction of business whereby the assessee was actually performing the activity of operation of catering and was not providing any service of...

Govt Examination Board Not Liable To Pay Service Tax On Examination Fees Collected From Candidates: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the government examination board is not liable to service tax on examination fees collected from candidates. Binu Tamta (Judicial Member) and Sanjiv Srivastava (Technical Member) stated that the examination fees collected from the candidates appearing for the examination being conducted by the appellant/assessee cannot be considered as consideration for the supply of manpower...

Customs | FERA Penalty U/S 50 Not Applicable For Export Shortfall Below 10%; Exporter Can Write-Off Unrealised Bills: Madras High Court

The Madras High Court stated that the FERA (Foreign Exchange Regulation Act) penalty under Section 50 is not applicable for export shortfall below 10%; the exporter can write off unrealised bills. Justices S.M. Subramaniam and C. Saravanan stated that even otherwise, since Section 18(1)(a) of the Foreign Exchange Regulation Act is to be read along with Section 18(2) and Section 18(3) of the Foreign Exchange Regulation Act, penalty under Section 50 of the Foreign Exchange Regulation Act...

CESTAT Quashes ₹56.47 Crore Customs Duty Demand On Dish TV Over Smart Card Classification

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Principal Bench, New Delhi, recently set aside a ₹56.47 crore customs duty demand against Videocon D2H Limited (now Dish TV India Ltd) in a dispute over the classification of imported smart cards. A coram of Justice Dilip Gupta (President) and Technical Member P V Subba Rao quashed an order dated April 28, 2020, passed by the Additional Director General (Adjudication), DRI. The tribunal observed that “Merely because ...

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...