Communication Modules Are Imported Independently, Not As Part Of Communication Hubs Or Smart Meters: CESTAT Quashes Customs Duty

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that imported communication modules function independently as parts of communication hubs, classifiable under CTI 8517 70 90. The Bench of Binu Tamta (Judicial Member) and P.V. Subba Rao (Technical Member) have observed that “since the communication modules were imported, they should be classified as such. The correct classification of the communication modules is CTI 8517 70 90.”“Since...

Ensure Counsel Appearing On Advance Service Are Instructed Properly: Delhi HC Asks Customs, GST Department, DRI And DGGI To Frame SOP

The Delhi High Court has asked the Customs Department, the Central GST Department, the Directorate of Revenue Intelligence (DRI), Directorate of General GST Intelligence (DGGI) to make sure that counsel representing them on advance service are instructed properly.A bench of Justices Prathiba M. Singh and Dharmesh Sharma ordered the Commissioner of Customs to prepare an SOP as to the manner in which the Department shall ensure that instructions are given to the nominated Counsels in the matter...

'Activity Did Not Involve Any Manufacturing, Central Excise Duty Was Collected Illegally': CESTAT Orders Refund

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has granted a refund along with interest, despite the absence of a statutory provision for interest under central excise laws at the relevant time. The Bench of Binu Tamta (Judicial Member) and P.V. Subba Rao (Technical Member) has observed that “the amount collected by way of Central excise duty was illegal as the activity itself did not involve any manufacture and the same cannot be allowed to be...

Prescribed Time Limit For Filing Refund Application Cannot Be Disregarded Merely Because Tax Was Collected Without Legal Authority: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the prescribed time limit for filing a refund application cannot be disregarded merely because the tax was collected without legal authority. The Bench of Justices Dilip Gupta (President) and P. V. Subba Rao (Technical) has observed that “the appellant cannot be permitted to claim a refund of service tax under sub-section (1) of section 102 and at the same time contend that the condition...

Department Cannot Invoke Extended Period Of Limitation Merely Because Returns Were Self-Assessed: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the department cannot invoke the extended period of limitation merely because the returns were self-assessed. The Bench of Justice Dilip Gupta (President) and P. V. Subba Rao (Technical Member) has observed that “Mere suppression of facts is not enough to invoke the extended period of limitation contemplated under the proviso to section 73(1) of the Finance Act. The suppression has to be...

Foreign Nationals Coming To India Not Required To Declare Personal Gold Jewellery To Customs: Delhi High Court

The Delhi High Court has held that foreign nationals coming to India need not declare to the Customs Department their gold jewellery which they are carrying for bonafide personal use.A division bench of Justices Prathiba M. Singh and Dharmesh Sharma further held that the Customs Department must make a distinction between 'jewellery' and 'personal jewellery', while seizing items for violation of the Baggage Rules, 2016 which are framed under the Customs Act, 1962.Thus in the facts and...

Once Court Orders Release Of Bank Guarantee Furnished By Trader, Customs Dept Can't Hold Back Compliance And Direct Adjustment In Demand Order: Delhi HC

The Delhi High Court has made it clear that once a court of law directs the Customs Department to release the bank guarantee furnished by a trader, the Department cannot turn around and say that the amount will be adjusted towards the final demand order.A division bench of Justices Prathiba M. Singh and Dharmesh Sharma were dealing with the writ petition moved by a firm importing gold jewellery. The firm had availed the benefit of an exemption Notification, which it claimed granted the benefit...

Customs Dept Cannot Run Parallel Proceedings By Passing Penalty Order While Challenge To SCN Is Pending Before Court: Delhi HC

The Delhi High Court has set aside a final order of penalty passed by the Customs Department against a paper trader for alleged undervaluation of imported goods, stating that the same was passed during pendency of challenge to the show cause notice (SCN) issued to the trader.A division bench of Justices Prathiba M. Singh and Dharmesh Sharma observed, “passing of the impugned Order-in-Original while the impugned SCN was under challenge before this Court would amount to initiation of parallel...

Supreme Court Sets Aside Excise Duty Demand On Oil Marketing Companies For Inter-Supply Of Petroleum Products

In a significant relief for Oil Marketing Companies (OMCs), the Supreme Court ruled (Jan. 20) that prices under the MoU for inter-supply of petroleum products, designed to ensure smooth nationwide distribution, do not constitute "transaction value" and are exempt from excise duty due to their non-commercial nature. The Court emphasised that the inter-supply arrangement was not solely price-driven but aimed at facilitating seamless distribution, rendering it ineligible for excise duty.Holding so,...

Trader Cannot Accept Settlement Commission's Order U/S 127C Of Customs Act 'In Parts': Delhi High Court

The Delhi High Court has held that an order passed by the Settlement Commission under Section 127C of the Customs Act, 1962 is in the nature of a 'settlement' and cannot be accepted by a trader only in part.A division bench of Acting Chief Justice Vibhu Bakhru and Justice Swarana Kanta Sharma observed, “Given the nature of the order passed under Section 127C of the Act – which is in the nature of a settlement – it would not be permissible to dissect the same and accept that parts of the order...

Importation Of Wireless Access Points Which Operate Solely On MIMO Technology Exempt From Customs Duty: Delhi High Court

Coming to the rescue of an IT distribution company, the Delhi High Court has held that the import of Wireless Access Points (WAPs), which operate on MIMO technology, are exempt from Customs duty.In doing so, the division bench of Acting Chief Justice Vibhu Bakhru and Justice Swarana Kanta Sharma held that the word “and” used between 'MIMO and LTE Products', which are eligible for exemption under the relevant notification issued by the Centre, is disjunctive.It thus rejected the Customs'...

'Will Pull You Up' : Supreme Court Asks GST Department To Rectify Issues Over Fake Invoices, Asks How Genuine Purchasers Are Liable

The Supreme Court on Wednesday flagged a recurring problem in GST matters whereby genuine purchasers who paid Goods and Services Tax (GST) face issues because their suppliers raised fictitious bills to evade crediting the GST to the department.The Court orally wondered how could the purchaser be held liable for the incorrect GST registration of the suppliers when they have genuinely made purchases and paid the money, including the GST amount.A bench of Chief Justice of India Sanijv Khanna and...