CUSTOMS
Time Limit For Post-Decisional Hearing In Customs Broker Licence Suspension Is Mandatory: CESTAT Mumbai
The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the 15-day time limit for granting a post-decisional hearing to a suspended Customs Broker is mandatory and cannot be extended by the customs authorities. A bench comprising Judicial Member Ajay Sharma and Technical Member A K Jyotishi was considering Capricorn Logistics' appeal against the order continuing its suspension. Regulation 16(2) of the Customs Broker Licensing Regulations, 2018 requires...
Delhi High Court Accepts Customs Apology For Failing To Video-Record Statement In Gold Seizure Case
The court, however, cautioned the Customs Department to be careful in future and comply with its directions scrupulously, as no directions can be taken lightly
Missing Shipping Bills Cannot Deny IGST Refund For Bhutan Exports: CESTAT Kolkata
On 10 August, the Kolkata Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that failure to file Shipping Bills for exports to Bhutan, particularly during the initial implementation of the Goods and Services Tax (GST) regime, could not justify denial of Integrated Goods and Services Tax (IGST) refund where the actual export of goods and payment of IGST were undisputed. A Single Member Bench comprising Justice (Retd.) R. Muralidhar set aside the rejection of refund and Rs. 1 lakh...
Customs Duty Exemption On Flavour Compound Cannot Be Denied On Alcohol Content Alone: CESTAT Bengaluru
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Bengaluru, has held that a customs duty exemption claimed on imported flavour compounds cannot be denied without establishing that the goods fall within the exclusion for compound alcoholic preparations of a kind used for the manufacture of beverages.The revenue must prove that the goods satisfy the exclusion. A bench comprising Judicial Member P.A. Augustian and Technical Member R. Bhagya Devi refering to a 2002 notification...
Registration In Exporting Country Before Import Does Not Make Vehicle Used: CESTAT Chennai
The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Chennai, has held that a vehicle does not lose its eligibility for concessional customs duty available for new vehicles merely because it was temporarily registered in the country of export, so long as there is no evidence that it was actually used before being exported to India.The revenue must establish that the vehicle was actually used before it was exported to India.“Mere registration of a motor vehicle in the exporting...
LED Modules Imported For Street Lights Attract 10% Customs Duty, Not 20% As Lamp Parts: CESTAT Delhi
The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), New Delhi has held that LED modules imported for manufacturing street lights cannot be classified as parts of lamps and lighting fittings merely because they are intended for use in street lights.A coram comprising Officiating President Dr. Rachna Gupta and Technical Member Hemambika R. Priya observed that while street lights are covered under the category for lamps and lighting fittings, “the usage/utility of the imported goods...
Interest On Duty Drawback Payable From LEO Date Not Adjudication Order: Delhi High Court
The Delhi High Court on 3 August held that interest on delayed duty drawback becomes payable one month after issuance of the Let Export Order (LEO), and the pendency of adjudication proceedings cannot postpone the statutory liability under Section 75A of the Customs Act (which provides for payment of interest on delayed drawback). A Division Bench of Justices Anil Kshetrapal and Shail Jain dismissed the Revenue's appeal against Siddhachalam Exports Pvt. Ltd., holding that the exporter was...
CESTAT Delhi Sets Aside ₹3.77 Crore Penalty Against Maruti Suzuki In Customs Classification Dispute
The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), New Delhi, has set aside a ₹3.77 crore penalty imposed on Maruti Suzuki India Ltd. over the classification of imported Glow Plug Control Units (GCUs).It held that customs authorities had accepted the company's classification of imported Glow Plug Control Units (GCUs) since 2015. The tribunal, however, ruled that the products are classifiable as components of electrical ignition or engine-starting equipment used in diesel engines. ...
Unauthenticated Foreign Authority Documents Can't Be Conclusive Proof In Customs Proceedings: CESTAT Chandigarh
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chandigarh has set aside a ₹4.95 crore customs duty demand against Findoc Impex, holding that unauthenticated documents allegedly obtained from the UAE Customs authorities could not, by themselves, establish that dry dates imported into India were of Pakistani origin. Emphasising that the burden rested on the Revenue to prove its allegations, the tribunal observed, "It is not for the appellant to disprove the allegations of the...
Delhi High Court To Examine CAAR's Power To Void Customs Advance Rulings
The Delhi High Court has admitted an appeal that will examine when the Customs Authority for Advance Rulings (CAAR) can declare an advance ruling void from the outset on the ground that it was obtained through misrepresentation of material facts. The appeal arises from the CAAR's exercise of its powers under Section 28K of the Customs Act, 1962, to declare the appellant's August 6, 2025, advance ruling void ab initio.The Division Bench of Justices Anil Kshetrapal and Shail Jain was hearing an...
Passenger Carrying Undeclared Gold Has No Entitlement to Seek Its Re-Export: Delhi High Court
The Delhi High Court has held that passengers who cross the Green Channel without declaring dutiable or prohibited goods cannot later seek re-export of the confiscated goods under Section 125 of the Customs Act.For context, Section 125 empowers the adjudicating authority to grant an option to redeem confiscated goods upon payment of a redemption fine.The Division Bench of Justices Anil Kshetarpal and Shail Jain observed that the provision is not an “entitlement” to re-export the goods. After...
