Customs Act | Bonafide Declaration Of Value Of Goods Can't Be Treated As Suppression Merely For Being Incorrect: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that bonafide declaration of value of goods can't be treated as suppression merely for being incorrect. The Bench of Justice Dilip Gupta (President) and Hemambika R. Priya (Technical Member) has observed that the declaration of the value of goods was a bonafide declaration and merely because it is ultimately found to be incorrect will not mean that the valuation was with a bad motive not...

HIV Test Kits Qualify As Life-Saving Diagnostic Kits; Eligible For Customs Duty Exemption: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that HIV-VL test kits qualify as life-saving diagnostic kits and is eligible for customs duty exemption. The Bench of Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) has observed that the HIV-VL test kits are “life-saving diagnostic kits” used for detection and prognosis of HIV-virus in a human body. “These kits not only detect the presence of HIV infection, but...

Customs Department Bound By DGFT's Classification Of Capital Goods Under EPCG Scheme: Madras High Court

The Madras High Court stated that customs department bound by DGFT's classification of capital goods under EPCG scheme (export promotion capital goods scheme). The Division Bench consists of Justices Anita Sumanth and N. Senthilkumar observed that “there is no justification in the Department having made the assessee litigate the issue needlessly despite the CBEC having categorically confirmed as early as in 2002 that the Customs Department must align with the stand of the DGFT and DG...

No Right To Reinstatement Of Customs Broker License After Breach Of Trust With Customs Department: Kerala High Court

The Kerala High Court stated that no right to reinstatement of customs broker license after breach of trust with customs department. Justices A.K. Jayasankaran Nambiar and P.M. Manoj stated that “…..the relationship between the Customs Department and the Customs Broker appointed in terms of the Regulations is essentially one of trust. Once that trust is broken, and the Customs Broker ceases to inspire the confidence of the Customs Department in relation to his functioning, he loses the...

Battery Packs Imported To Manufacture Phones Fall Under 12% GST Category: CESTAT Allows Samsung's Appeal

The Customs, Excise & Service Tax Appellate Tribunal at Delhi has held that lithium-ion batteries used for the manufacture of mobile phones up to March 31, 2020 would attract 12% GST.A Bench of Justice Dilip Gupta (President) and Hemambika R. Priya (Technical Member) added that if lithium-ion batteries were not used in the manufacture of mobile phones, they would attract 28% GST up to July 26, 2018 and 18% GST thereafter until March 31, 2020.The issue before the Tribunal was with respect to...

'Decalcified Fish Scale' Import Covered Under Advance Authorisation Scheme; Customs Cannot Deny Benefit: Kerala High Court

The Kerala High Court stated that 'decalcified fish scale' import covered under advance authorization scheme; customs cannot deny benefit. The advance authorization scheme enables duty free import of inputs/raw materials required for manufacture of export goods. Justices A.K. Jayasankaran Nambiar and P.M. Manoj observed that during the period subsequent to the period covered by the show cause notice, the assessee has obtained advance authorization for importing the same product...

Profit Earned In GTA Service Through Sub-Contractor Not Taxable As Business Auxiliary Service: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that profit earned in GTA service (Goods Transport Agency Service) through sub-contractor not taxable as business auxiliary service.The Bench of Dr. Rachna Gupta (Judicial Member) and P.V. Subba Rao (Technical Member) has observed that “revenue's attempt to charge service tax on the profit calling it business auxiliary service cannot be accepted because the service which the assessee provided to...

Service Tax Not Leviable On License Fee Or Spectrum Charges Payable For Period Before 1st April 2016: CESTAT

The Chandigarh Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that service tax not leviable on license fee/spectrum charges payable for period prior to 01.04.2016. The Bench consists of S.S. Garg (Judicial Member) and P. Anjani Kumar (Technical Member) has stated that “as per the principle of ejusdem generis, the phrase “any other document issued by the Government demanding such payment” should only include documents of similar nature to an invoice,...

Service Tax Payable On Service Charges Collected From Client For Printing: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that service tax payable on service charges collected from client for printing. The Bench of Dr. Rachna Gupta (Judicial Member) and P.V. Subba Rao (Technical Member) has observed that the assessee engaged someone else to do the job of printing after preparing content using its in-house expertise. The assessee was, by no stretch of imagination a job worker to a printer. The printer, in fact,...

Statement Recorded U/S 108 Of Customs Act Is Not Valid Evidence U/S 138B Of Customs Act: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that statement recorded under section 108 of the Customs Act not valid evidence under section 138B of the Customs Act. The Bench of Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) was addressing the issue of whether the statement recorded under section 108 of the Customs Act could be considered as evidence under section 138B of the Customs Act. In this case, the...

Proceedings Against Assessee Unsustainable Once Discharge Certificate Is Issued Under SVLDRS Scheme: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that proceedings against assessee unsustainable once discharge certificate is issued under SVLDRS [Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019] Scheme. The Bench of Ashok Jindal (Judicial Member) and P. Anjani Kumar (Technical Member) was addressing the issue that in case where the assessee opts for SVLDRS Scheme and obtained discharge certificate can the proceedings by way of ...

Packing/Re-Packing Of Parts Of Device Is Not Manufacture U/S 2(f)(iii) Of Central Excise Act; No Excise Duty: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that packing/re-packing of parts of vibrator compactor is not manufacture under Section 2(f)(iii) Of Central Excise Act and hence no excise duty is leviable. The Bench of Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) was addressing the issue of whether the two constructions equipments namely Wheeled Tractor Loader Backhoe and Vibratory Compactor are “Automobiles”, ...