CUSTOMS
CESTAT Delhi Sets Aside Order Classifying Kitchen And Household Accessories As Furniture Parts
The Customs, Excise & Service Tax Appellate Tribunal (CESTAT) at Delhi has set aside an order classifying imported kitchen and wardrobe storage products as furniture parts and held that they are classifiable as kitchen and household articles or furniture fittings under Chapters 73 and 83 of the Customs Tariff. A bench of President Justice Dilip Gupta and Technical Member K. Anpazhakan allowed the appeal filed by Inox Decor Pvt. Ltd. against an order of the Principal Commissioner of Customs,...
CESTAT Delhi Quashes ₹3 Lakh Penalty On Customs Broker, Finds No Evidence Of Knowledge Of Export Overvaluation
The Principal Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi has set aside a ₹3 lakh penalty imposed on a customs broker in a case relating to the alleged overvaluation of export goods by Sharp Enterprises. The tribunal held that there was nothing on record to show that he was involved in, or had knowledge of, the alleged overvaluation. A bench of Technical Member P.V. Subba Rao observed: “There is also nothing on record to show that the appellant had...
CESTAT Chennai Sets Aside Confiscation Of Sanitary Napkin Imports Over Alleged Violations Of BIS Norms
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai, has set aside a customs order confiscating sanitary napkin imports worth over ₹2.12 crore. It found that the adjudicating authority failed to properly examine the importer's claim that it qualified as an MSME, along with other contentions on the applicability of BIS compliance norms. A bench of Judicial Member P. Dinesha and Technical Member Vasa Seshagiri Rao held that the Commissioner's order could not be sustained. ...
CESTAT Kolkata Says Customs Cannot Extend Findings From Two Tested Mica Consignments To 72 Earlier Imports
The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has partly allowed an appeal by M.P. Mica Enterprises Private Limited, holding that customs authorities could not apply laboratory findings from two live consignments of imported mica to 72 past consignments without independent evidence that the earlier imports were identical. A bench of Judicial Member Ashok Jindal and Technical Member K. Anpazhakan, however, upheld the reclassification of the two live...
Delhi HC Quashes ₹3.20 Crore Customs Communication Against Vivo India After Customs Agrees To Issue SCN
The Delhi High Court on May 20 quashed a customs communication issued to Vivo Mobile India Pvt. Ltd. indicating differential duty liability of ₹3.20 crore, after the Customs Department stated that it would issue a show cause notice within four weeks.A Division Bench of Justices Nitin Wasudeo Sambre and Ajay Digpaul noted, “In consideration of the statement made by Mr. Naushad for issuance of a show cause notice within four weeks, we quash and set aside the impugned communication dated...
CESTAT Kolkata Sets Aside Service Duty On Sterling Meta-Plast, Excludes Franchise Fees, AMP From Value
The Kolkata Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) on 26 May held that franchise fees, advertisement and promotional expenses, and corporate marketing fees paid under brand licensing arrangements for Tommy Hilfiger and French Connection eyewear are not includible in the assessable value of imported goods. Judicial Member Ashok Jindal and Technical Member K. Anpazhakan reasoned that the expenses are not linked to the import transaction or a condition of sale...
Ergotamine Preparation Export Needed No NOC From Narcotics Commissioner: CESTAT Delhi Sets Aside Penalty
The Customs, Excise & Service Tax Appellate Tribunal (CESTAT) at Delhi has recently held that the export of the pharmaceutical product in question containing 1% Ergotamine did not require prior clearance from the Narcotics Commissioner, setting aside a ₹50,000 penalty imposed on customs broker Unnati Cargo. The single-member bench of Judicial Member Binu Tamta held that the product could at best be treated as a preparation of Ergotamine and not as “Ergotamine and its salts,” the category...
Supreme Court Issues Notice In DMRC Plea Against ₹45 Crore Service Tax Demand On Upfront Lease Premium
The Supreme Court on Tuesday issued notice on an appeal filed by Delhi Metro Rail Corporation Ltd (DMRC) challenging a CESTAT ruling that upheld a service tax demand of over ₹45 crore. The demand relates to upfront fees received under long-term lease arrangements for property development linked to the Delhi Metro project.A Bench of Justices Pamidighantam Sri Narasimha and Alok Aradhe issued notice and agreed to hear the case on merits.The dispute arose from service tax demands against DMRC on...
Reliance Industries' n-Hexane Import Cannot Be Classified As Motor Spirit Merely For Low Flash Point: Supreme Court
The Supreme Court has ruled in favour of Reliance Industries Ltd. in its long-running customs classification dispute, holding that imported n-Hexane cannot be treated as motor spirit merely because its flash point is below 25°C. The court held that the Customs Department failed to prove that the product satisfied all conditions required for such classification, including suitability for use as fuel in spark ignition engines. A bench of Justice Aravind Kumar and Justice Prasanna B. Varale...
CESTAT Allahabad Says Customs Cannot Reassess Value Of Goods After Clearance For Home Consumption
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Allahabad has recently set aside a customs duty demand of over ₹10.22 crore against Uttam Steel Alloys after finding multiple flaws in the department's case, including its attempt to enhance the value of goods after they had already been cleared for home consumption. A coram of Judicial Member P K Choudhary and Technical Member P Anjani Kumar held that once goods are cleared for home consumption, they cease to retain the character...
Home Fiber Broadband Devices ONT, OLT Are Data Transmission Machines, Not Residual Telecom Equipment: CESTAT Delhi
The Principal Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi has held that Optical Network Terminals (ONT/ONU) and Optical Line Terminals (OLT) imported by GX India Pvt. Ltd. are machines used to receive and transmit data. It rejected the company's classification of ONT/ONU as “subscriber end equipment” and OLT under the residual “other” category. A bench of President Justice Dilip Gupta and Technical Member P.V. Subba Rao partly allowed GX India's...
Customs Can Rely On Additional Documents Showing Wrong Export Declarations For Reassessment: CESTAT Hyderabad
The Hyderabad Bench of the CESTAT has held that Customs authorities can rely on subsequently obtained documents to revisit self-assessed export shipping bills if those documents reveal wrong declarations made at the time of export. A bench of Judicial Member Angad Prasad and Technical Member A.K. Jyotishi observed: “Essentially, on the issue of whether in the case of re-assessment, the department can resort to various other information, which came to their knowledge subsequently and demand...