Cut Umbrella Panels Treated As Made-Up Textile Articles, Not Woven Fabric For Tax: CESTAT Kolkata

The Kolkata Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 4 August held that umbrella panel fabric cut into predetermined triangular shapes and sizes is classifiable as a “made-up textile article” under Customs Tariff Heading (CTH) 6307 and not as woven fabric of synthetic filament yarn under CTH 5407. A Bench comprising Judicial Member Justice R. Muralidhar and Technical Member K. Anpazhakan set aside the demand of differential customs duty, interest and penalty, holding that...

Excess Quantity, Enhanced Value Alone Don't Establish Misdeclaration Under Customs Act: CESTAT Mumbai

The Mumbai bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has ruled that finding excess imported goods during examination, even when their assessable value is enhanced, does not by itself establish misdeclaration under the Customs Act, 1962. Technical Member M.M. Parthiban observed that the department had produced no evidence to show the importer had ordered or suppressed the excess quantity of goods, and held that confiscation, redemption fine and penalty could not be...

Delhi High Court Slams Customs-CONCOR Standoff Over Container, Says Dispute Driven By 'Ego' Not 'Law'

The Delhi High Court recently observed that a dispute between the Customs Department and the Container Corporation of India (CONCOR) over the release of a shipping container appeared to be "driven more on account of ego than on any question of law," after the container remained stranded for more than three years.A Division Bench of Justices Anil Kshetrapal and Shail Jain made the observation while hearing a plea filed by Ukraine-based freight forwarding company, seeking release of its container...

Father, Employee Can't Be Penalised Solely For Relationship With Gold Smuggling Accused: CESTAT Kolkata

The Kolkata bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has recently held that a person cannot be penalised for allegedly aiding or facilitating gold smuggling merely because he is the father or an employee of the principal noticee.The tribunal said such penalties can be imposed only where the Revenue produces cogent and independent evidence showing that the person consciously participated in or abetted the alleged smuggling. "The relationship of appellant no. 1...

CESTAT Chandigarh Quashes ₹99.59 Lakh Demand, Says DGOV Guidelines Cannot Override Valuation Rules

The Chandigarh Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 28 July held that Directorate General of Valuation (DGOV) guidelines cannot override the Customs Valuation Rules, 2007. Also that Customs authorities cannot reject a declared transaction value solely on the basis of such guidelines or London Metal Exchange (LME) prices without evidence proving that the declared value was incorrect.A Bench comprising Judicial Member S.S. Garg and Technical Member P. Anjani Kumar set...

CESTAT Chennai Quashes ₹14.88 Crore Customs Duty Demand Against Toyota Kirloskar Auto Parts

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai has set aside a ₹14.88 crore customs duty demand against Toyota Kirloskar Auto Parts Pvt. Ltd. It held that transmission gears imported by the company are classifiable as "gears and gearing" under the Customs Tariff and cannot be treated as motor vehicle parts merely because they are ultimately used in manufacturing vehicles.Holding that the imported goods were specifically classifiable as "gears and gearing" under the...

Mandatory 7.5% Customs Appeal Pre-Deposit Cannot Be Waived Or Reduced: Delhi High Court

The Delhi High Court has recently held that the mandatory pre-deposit required for filing an appeal before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) under Section 129E of the Customs Act, 1962 cannot be waived or reduced, as the Act contains no provision permitting such reduction.A division bench of Justices Anil Kshetrapal and Shail Jain passed the order while disposing of four writ petitions filed by importers challenging orders passed by the customs authorities and...

Gujarat High Court Faults CESTAT For 'Difficult To Decipher' Remand Order In Customs Classification Dispute

The Gujarat High Court has recently set aside a CESTAT order remanding a customs classification dispute, questioning how the tribunal directed the adjudicating authority to re-examine CBEC circulars despite an earlier Gujarat High Court judgment requiring the Union of India to undertake that exercise."We fail to understand how the Tribunal, in the facts of the present case, adopted the very same directions and remanded the matter to the Adjudicating Authority to re-look into the said Circulars,...

Gujarat High Court Dismisses LANXESS Belgium's Writ Against Anti-Dumping Duty, Holds CESTAT Proper Forum

The Gujarat High Court on 7 July held that disputes concerning the methodology used by the Designated Authority to determine dumping and injury margins in anti-dumping proceedings must be raised before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), and not through a writ petition unless exceptional circumstances exist. A Division Bench of Justices A.S. Supehia and Vaibhavi D. Nanavati dismissed the writ petition filed by Belgian exporter LANXESS Belgium N.V. challenging the...

Madras High Court Quashes ₹12.58 Cr Demand Against Pellagic Food, Upholds Advance Ruling Principles

The Madras High Court on 9 July quashed the Customs order passed against Pellagic Food Ingredients Pvt. Ltd. that raised a demand of Rs. 12.58 crore as differential customs duty, along with interest, confiscation of goods, redemption fine and penalties. A Single Judge Bench of Justice Hemant Chandangoudar held that Customs authorities should ordinarily follow the legal principles laid down in an Advance Ruling in similar cases, even though such rulings bind only the applicant who obtained them,...

CESTAT Mumbai Slams Customs For Missing Records, Calls It Contrary To 'Viksit Bharat @2047' Vision

On 21 July, the Mumbai Customs, Excise and Service Tax Appellate Tribunal (CESTAT) criticised the Customs Department for rejecting a refund claim merely because it was unable to trace its own records, observing that such administrative failure is inconsistent with the vision of “Viksit Bharat @2047”. A Single Member Bench of Technical Member M.M. Parthiban made the observation while allowing an appeal filed by John Miranda and directing the Customs Department to refund Rs. 3 lakh deposited...

No MRP Doesn't Mean Imported Pet Food Isn't 'Put Up For Retail Sale' If It's Consumer-Ready: Bombay High Court

The Bombay High Court on Wednesday held that the absence of a maximum retail price (MRP) does not by itself prevent imported pet food packs from being treated as goods "put up for retail sale," even if they are repacked into smaller units after customs clearance.A division bench of Justice B.P. Colabawalla and Justice Firdosh P. Pooniwalla observed,"The absence of MRP does not detract from this status, especially as the packs fall below the 25 kg exemption threshold under Rule 3(a) of the Legal...