Service Of Notice On Adult Member Of Noticee Is Valid U/S 153 Of Customs Act, 1962: Kerala High Court

The Kerala High Court stated that service of notice on the adult member of noticee is valid under Section 153 Of Customs Act, 1962. Section 153 of the Customs Act, 1962, outlines the modes of service for notices, orders, summons, and other communications under the Act and its rules. Justice Ziyad Rahman A.A. stated that “the contentions that the assessee was denied a proper opportunity to contest the matter cannot be accepted. The notice was served upon the assessee through the...

Customs Cannot Rely On S.122A To Deny Personal Hearing Mandatory U/S 28(8) Of Customs Act: Kerala High Court

The Kerala High Court stated that customs cannot rely on Sec. 122A to deny personal hearing mandatory under Section 28(8) of the Customs Act. Justice Ziyad Rahman A.A. after analysing Section 28(8) of the Customs Act observed that it is evident that, as far as personal hearing is concerned, it is made mandatory as per the provision. Since this is a special provision deals with the issue on hand, the reliance placed by the department upon Section 122A, which is a general provision,...

Customs Act | Bonafide Declaration Of Value Of Goods Can't Be Treated As Suppression Merely For Being Incorrect: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that bonafide declaration of value of goods can't be treated as suppression merely for being incorrect. The Bench of Justice Dilip Gupta (President) and Hemambika R. Priya (Technical Member) has observed that the declaration of the value of goods was a bonafide declaration and merely because it is ultimately found to be incorrect will not mean that the valuation was with a bad motive not...

HIV Test Kits Qualify As Life-Saving Diagnostic Kits; Eligible For Customs Duty Exemption: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that HIV-VL test kits qualify as life-saving diagnostic kits and is eligible for customs duty exemption. The Bench of Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) has observed that the HIV-VL test kits are “life-saving diagnostic kits” used for detection and prognosis of HIV-virus in a human body. “These kits not only detect the presence of HIV infection, but...

Customs Department Bound By DGFT's Classification Of Capital Goods Under EPCG Scheme: Madras High Court

The Madras High Court stated that customs department bound by DGFT's classification of capital goods under EPCG scheme (export promotion capital goods scheme). The Division Bench consists of Justices Anita Sumanth and N. Senthilkumar observed that “there is no justification in the Department having made the assessee litigate the issue needlessly despite the CBEC having categorically confirmed as early as in 2002 that the Customs Department must align with the stand of the DGFT and DG...

No Right To Reinstatement Of Customs Broker License After Breach Of Trust With Customs Department: Kerala High Court

The Kerala High Court stated that no right to reinstatement of customs broker license after breach of trust with customs department. Justices A.K. Jayasankaran Nambiar and P.M. Manoj stated that “…..the relationship between the Customs Department and the Customs Broker appointed in terms of the Regulations is essentially one of trust. Once that trust is broken, and the Customs Broker ceases to inspire the confidence of the Customs Department in relation to his functioning, he loses the...

'Decalcified Fish Scale' Import Covered Under Advance Authorisation Scheme; Customs Cannot Deny Benefit: Kerala High Court

The Kerala High Court stated that 'decalcified fish scale' import covered under advance authorization scheme; customs cannot deny benefit. The advance authorization scheme enables duty free import of inputs/raw materials required for manufacture of export goods. Justices A.K. Jayasankaran Nambiar and P.M. Manoj observed that during the period subsequent to the period covered by the show cause notice, the assessee has obtained advance authorization for importing the same product...

Statement Recorded U/S 108 Of Customs Act Is Not Valid Evidence U/S 138B Of Customs Act: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that statement recorded under section 108 of the Customs Act not valid evidence under section 138B of the Customs Act. The Bench of Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) was addressing the issue of whether the statement recorded under section 108 of the Customs Act could be considered as evidence under section 138B of the Customs Act. In this case, the...

Treaty Provisions Don't Override Customs Law: Bombay High Court Upholds SCN Issued For Alleged Misuse Of Import Exemptions

The Bombay High Court stated that treaty provisions don't override customs law and upheld the show cause notices issued for alleged misuse of import exemptions. The Bench consists of Justices M.S. Sonak and Jitendra Jain observed that based on a treaty provision that is not transformed or incorporated into the national law or statute, the provisions of the existing Customs Act cannot be undermined, or the powers and jurisdiction of the customs authorities questioned. In this case,...

Re-Determining Value Of CDs Imported By HP India Is Invalid Without Rejection Of Transaction Value Under Customs Valuation Rules: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that re-determination value of CDs imported by HP India invalid without rejection of transaction value under Rule 12 Customs Valuation Rules 2007. The bench stated that unless the proper officer rejects the transaction value under Rule 12, the valuation has to be based on transaction value as per Rule 3 with some additions, if necessary, as per Rule 10. Rule 12 of Customs Valuation Rules...

Kerala High Court Directs Customs To Dispose Of Seized Buffalo Meat Consignments Within One Month Due To Perishability

The Kerala High Court has directed the customs department to dispose of seized buffalo meat consignments within one month due to perishability. The Bench of Justice Ziyad Rahman A.A was addressing the issue pertaining to the seizure of the consignments of buffalo meat, which were proposed to be exported to a foreign country. On examination, it was found that there was a misdeclaration by the consignor, and it contained certain items which were prohibited from being exported. ...

Knowledge & Intention Must Be Present Before Imposing Penalty U/S 114AA Of Customs Act For Obtaining Undue Export Advantage: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that knowledge and intention must be there to impose penalty under Section 114AA of Customs Act. The Bench of Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) has observed that “Knowledge and intention is sine qua non for imposing penalty under section 114AA of the Customs Act. The department has not been able to establish knowledge on part of the assessee or intention on...