Vodafone Idea's Five-Year Delay Cannot Curtail Statutory Interest On Pre-Deposit: CESTAT New Delhi

On 24 August, the New Delhi Customs, Excise and Service Tax Appellate Tribunal (CESTAT) allowed Vodafone Idea Ltd.'s appeal against the denial of interest on its service tax pre-deposit. A Bench comprising Technical Member P.V. Subba Rao held that interest under Section 35FF of the Central Excise Act is payable from the date of deposit until the date of actual refund, regardless of the reason for the delay. He held: “As per Section 35FF interest has to be paid from the date of payment of the...

12% Interest Payable On Redemption Fine Deposits From Date Of Deposit: CESTAT Chandigarh

The Chandigarh Customs Excise and Service Tax Appellate Tribunal (CESTAT) on 21 August held that interest at 12% per annum is payable on redemption fine amounts deposited by an importer for securing release of goods, from the date of deposit until the date of actual refund, holding that such interest is compensatory in nature. A Bench comprising Judicial Member S.S. Garg allowed two appeals filed by Hindustan Distributors seeking interest on refunds of Rs. 18 lakh and Rs. 27 lakh representing...

Six-Month Limit Does Not Apply To Currency Seized As Evidence Under Customs Act: Madras High Court

The Madras High Court on 10 August held that the six-month time limit under Section 110(2) of the Customs Act, 1962 for issuing a show-cause notice does not apply to Indian currency treated as a “thing” under Section 110(3) when Customs officers retain it as material evidence during an investigation. A Division Bench of Justices G. Jayachandran and N. Mala allowed a writ appeal filed by the Principal Commissioner of Customs against an order directing the release of Rs. 21.55 lakh recovered from...

Customs Act | CESTAT Chennai Holds S.117 Penalty Cannot Be Imposed Without Finding Of Contravention

The CESTAT, Chennai has set aside the ₹4 lakh penalty imposed on Dahnay Logistics Pvt. Ltd. under Section 117 of the Customs Act, finding that there was no established contravention warranting penalty.A Bench comprising Ajayan T.V., Member (Judicial) found that 100% examination of the cargo had revealed nothing objectionable and that the documents furnished by Dahnay Logistics were not found wanting.The Tribunal held that Section 117 could not be invoked mechanically and that a penalty required...

Deletion Of 'Setting Up' Does Not Bar CENVAT Credit On Plant-Setting Services: CESTAT Ahmedabad

On 19 August, the Ahmedabad Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that CENVAT credit cannot be denied merely because the expression “setting up” was omitted from the definition of “input service” under Rule 2(l) of the CENVAT Credit Rules, 2004, with effect from 1 April 2011. A Bench comprising Judicial Member Dr. Ajaya Krishna Vishvesha and Technical Member Satendra Vikram Singh partially allowed appeals filed by ATC Tires Pvt. Ltd. against denial of CENVAT...

Criminal Court Cannot Order Release Of Seized Goods Without Customs Cognizance: Gauhati High Court

The Gauhati High Court on 13 August held that a regular criminal court cannot exercise powers under the general criminal law to release goods seized under the Customs Act when no cognizance of a Customs offence has been taken. Justice Mridul Kumar Kalita allowed a criminal petition filed by the Deputy Director, Directorate of Revenue Intelligence (DRI), Dimapur Regional Unit, challenging the 12 March 2026 order of the Principal District and Sessions Judge/Special Judge, Dimapur. The order had...

Karnataka High Court Sets Aside Advance Ruling On Kitchen Exhaust Hoods In Halton India's Case

The Karnataka High Court on 6 August held that the Customs Authority for Advance Rulings must examine material produced by an importer to determine whether kitchen exhaust hoods contain fans before deciding their tariff classification. A Division Bench comprising Justices S.G. Pandit and K. Manmadha Rao set aside the Authority's order dated 25 March 2026 after finding that material submitted by Halton India Pvt. Ltd. to establish that its imported exhaust hoods contain fans had not been...

Separately Imported Laptop LCD Panels Are Flat Panel Displays, Not Computer Parts: CESTAT Delhi

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Delhi, has held that separately imported laptop LCD panels are classifiable as flat panel display modules, rather than as parts or accessories of computers. The tribunal ruled that their intended use in laptops could not determine their classification when the goods retained their identity as separately presented display modules at the time of import.“The appellant has impressed upon his goods to be the Laptop monitors which...

Export Duty Recovery Premature Before Finalisation Of Provisional Assessment: CESTAT Chandigarh

The Chandigarh bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has set aside a ₹26.96 lakh export duty demand against S.K. Brothers. The court held that duty recovery proceedings cannot be initiated before a provisional assessment is finalised.The bench comprising Judicial Member S.S. Garg and Technical Member P. Anjani Kumar found that the rice consignments were allowed to be exported on provisional assessment while samples were being tested to determine the nature of...

Notification Prescribing Time Limit For Post-Export Shipping Bill Conversion Cannot Apply Retrospectively: CESTAT Ahmedabad

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Ahmedabad has held that a 2022 notification prescribing a time limit for post-export conversion of Shipping Bills cannot be applied retrospectively to exports made before it came into force.A coram comprising Judicial Member Somesh Arora and Technical Member Satendra Vikram Singh ruled that the notification had no application to Metalloys Recycling Ltd.'s exports made between October 2019 and January 2022.The tribunal observed,...

Madras High Court Directs Provisional Release Of 119 Machines, Rejects Retrospective Customs Rule

The Madras High Court on 3 August held that a Customs notification that came into force after the shipment of imported goods could not be applied retrospectively to deny provisional release of the goods. Justice Hemant Chandangoudar directed the Customs authorities to consider the request of S.P. Associates, represented by its proprietor Yogendra Pratap, for provisional release of 119 used digital multifunction printing, copying and scanning machines imported under a Bill of Entry dated 17 July...

Madras High Court Quashes Vital Wheat Gluten Seizure, Cites Earlier Ruling On DFIA Exemption

The Madras High Court has recently quashed a seizure memo issued against Bhansali Chematics Private Limited over its import of Vital Wheat Gluten. The court held that there was no legally sustainable material to form the requisite belief that the goods were liable to confiscation.A Single Bench of Justice Hemant Chandangoudar held that wheat gluten falls within the description of “wheat flour” for the purposes of the Duty Free Import Authorisation (DFIA) Scheme. The court relied on earlier...