CUSTOMS
Delhi High Court Upholds Confiscation of 2.7 kg Undeclared Gold, Says Experienced Traveller Knew Customs Rules
The Delhi High Court has upheld the confiscation of over 2.7 kilograms of gold brought into India from Dubai without declaration, observing that the petitioner's experience as an international traveller showed that he was fully aware of his obligation to declare dutiable goodsA Division Bench of Justices Anil Kshetarpal and Shail Jain refused to interfere with the concurrent findings of the adjudicating authority, the Commissioner of Customs (Appeals) and the revisional authority, which had held...
Customs Duty Exemption Available For ELISA Kits Cannot Be Claimed By Individual Components: CESTAT Delhi
The Principal Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), New Delhi, has recently held that QFT Tubes, though functionally used with ELISA kits, are not entitled to the concessional 5% Basic Customs Duty (BCD) available to ELISA kits. ELISA (Enzyme-Linked Immunosorbent Assay) is a diagnostic testing method used to detect diseases by analysing blood samples.It held that the exemption applies only to the complete diagnostic kit and not to its individual...
Customs Appeals Cannot Face Maintainability Challenge At Pre-Admission Stage: Calcutta High Court
The Calcutta High Court on 10 July held that parties in customs appeals cannot challenge the maintainability of such appeals at the pre-admission stage, and must raise objections relating to jurisdiction or maintainability only after the Court determines whether the appeal involves a substantial question of law. A Division Bench of Justices Rajarshi Bharadwaj and Uday Kumar rejected the respondents' request for a preliminary hearing on maintainability while hearing a batch of appeals filed by...
CESTAT New Delhi Restores India-Thailand FTA Benefit To P.C. Jeweller Citing Verification Rules
On Tuesday, 14 July, the Principal Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) at New Delhi, held that the Directorate of Revenue Intelligence (DRI) cannot deny preferential customs duty benefits under the India-Thailand Free Trade Agreement without following the prescribed procedure to verify Country of Origin (COO) Certificates with the issuing authority. A Bench of Judicial Member Ashok Jindal and Technical Member K. Anpazhakan allowed a batch of appeals filed by...
Madras High Court Holds Unreasonable Delay Bars Duty Drawback Recovery, Quashes ₹38.77 Lakh Demand
The Madras High Court on 7 July held that customs authorities cannot recover duty drawback benefits after an unreasonable and unexplained delay, even when the relevant rules do not prescribe a specific limitation period for such recovery. Justice Hemant Chandangoudar quashed the recovery proceedings initiated against A.Kiyasdeen, an exporter for recovery of Rs. 38.77 lakh in duty drawback and a penalty of Rs. 1 lakh, holding that the proceedings initiated several years after the drawback was...
CESTAT Hyderabad Sets Aside ₹26.60 Lakh Customs Duty Demand, Rules Imported Quicklime Is Not Chemical Product
The Hyderabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has allowed the appeal filed by V I S A Steel Ltd., holding that imported quicklime is classifiable as lime under the Customs Tariff and not under the tariff entry applicable to chemically defined compounds. The tribunal set aside a differential customs duty demand of ₹26.60 lakh, along with the interest and penalty. A bench of Judicial Member Angad Prasad and Technical Member P. Anjani Kumar observed: ...
CESTAT Ahmedabad Says Director's Position Alone Cannot Attract Customs Penalty Quashes ₹1 Cr Levy
On 9 July, the Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that a company director cannot be penalised under the Customs Act, 1962 merely because of his position in the company unless the Department proves his active involvement in the alleged offence. Judicial Member Dr. Ajaya Krishna Vishvesha and Technical Member Satendra Vikram Singh allowed the appeal filed by Global Enterprises' director Altaf Ahmed and set aside the Rs. 1 crore penalty imposed...
CESTAT Mumbai Sets Aside Customs Broker Licence Revocation For Lack Of Independent Findings
The Mumbai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has set aside the revocation of a Customs Broker's licence. It found that the customs department failed to establish that the broker had breached its obligations while handling exports that were later alleged to have been overvalued to claim higher duty drawback. A tribunal comprising Judicial Member S.K. Mohanty and Technical Member M.M. Parthiban held that the licensing authority had failed to independently...
Authorised Courier Can Appeal Licence Revocation After Chief Commissioner Representation: Delhi High Court
The Delhi High Court has held that an Authorised Courier whose licence has been revoked under the Courier Imports and Exports (Clearance) Regulations, 2010 can maintain a statutory appeal under Section 129A of the Customs Act, 1962, even after availing the remedy of representation before the Chief Commissioner under the Regulations.A Division Bench of Justices Anil Kshetrapal and Shail Jain set aside a CESTAT order that had dismissed the courier's appeal as not maintainable on the ground that...
CESTAT Chennai Sets Aside Customs Duty Demand After Royalty Was Added To Import Value
The Chennai bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has set aside a customs duty demand that arose after royalty payments were added to the transaction value of imported raw materials. The tribunal followed its earlier ruling in the same company's case after finding that the Revenue had not shown any change in facts, produced any new document, or established any change in law to justify taking a different view. The bench of Judicial Member P. Dinesha and...
CESTAT Allahabad Sets Aside Gold Seizure, Finds Customs Relied On Unreliable Panchnama And Retracted Statements
The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Allahabad, has set aside a customs order confiscating gold jewellery and bullion. It held that the panchnama forming the foundation of the case was unreliable because the Department failed to substantiate it by examining the panch witnesses. A bench of Judicial Member P.K. Choudhary and Technical Member P. Anjani Kumar held that the Revenue's case also rested on statements that had been retracted at the first available...