Customs Can Levy Duty On Modular Kitchens, Not Re-Determine Value Arbitrarily: CESTAT Chennai

The Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that customs duty is applicable to imports of modular kitchens in CKD/SKD condition, but the declared transaction value cannot be rejected or enhanced merely on the basis of a weight-based comparison or administrative valuation guidelines.The bench, consisting of Judicial Member P. Dinesha and Technical Member Vasa Seshagiri Rao, examined whether the Department was justified in rejecting the...

Mere Presence Of Finance Ministry, CBIC In Delhi Doesn't Confer It Jurisdiction To Entertain Petition: Delhi High Court

The Delhi High Court has held that the mere presence of the Ministry of Finance and the Central Board of Indirect Taxes and Customs (CBIC) in Delhi does not, by itself, confer territorial jurisdiction on the High Court, when the cause of action arises from summons and demands issued by authorities located outside Delhi.The Division bench of Justices Nitin Wasudeo Sambre and Ajay Digpaul dismissed a writ petition filed by an exporter challenging summons issued by the Directorate of Revenue...

CESTAT Quashes Rs 3.47 Crore Duty Demand On Myntra Jabong, Says No Wilful Suppression

The Delhi Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on Friday set aside a Rs 3.47 crore customs duty demand against Myntra Jabong India Pvt Ltd, holding that the extended limitation period under Section 28(4) of the Customs Act could not be invoked in a classification dispute.Allowing the appeal, The Tribunal noted that the company had deposited the entire differential duty along with interest before issuance of the show cause notice and that its failure to mention the...

S.108 Customs Act | Statements Recorded By Customs Officers Sufficient To Proceed To Trial: Kerala High Court

The Kerala High Court has refused to discharge one of the accused in a CBI corruption case, holding that in the present case, statements recorded by Customs officers under Section 108 of the Customs Act, along with other materials constitute sufficient prima facie grounds to proceed to trial. “Thus, in the instant case, prima facie, there are materials to proceed with trial of the revision petitioner/accused No.3. No doubt, the evidentiary value of approvers and how far the same to be believed...

Second-Hand Digital Multifunction Machines Imported Pre-2012 Not Confiscable: CESTAT Chennai

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) on 19 February held that second-hand digital multifunction print and copying machines imported before June 2012 were freely importable and not liable to confiscation. A Bench comprising Judicial Member P. Dinesha and Technical Member Vasa Seshagiri Rao were hearing an appeal by Jaya Trading Company. The members examined whether the rejection of the importer's appeal on limitation was legally sustainable and...

Importer Who Voluntarily Pays Differential Customs Duty, Seeks DRI Probe Closure Cannot Claim Refund: Madras High Court

The Madras High Court on Wednesday held that differential customs duty voluntarily paid during a Directorate of Revenue Intelligence (DRI) investigation cannot be claimed as a refund. The Court further held that Notification No. 25/2019-Customs amended the applicable customs duty rate by treating shrimp larvae feed in both pellet and non-pellet form as attracting 5% basic customs duty. The notification cannot be applied retrospectively to imports made prior to its issuance.The judgment was...

Non-Declaration Of Gold At Green Channel Not Always Smuggling: Delhi High Court

The Delhi High Court has recently held that in a case of non-declaration of gold at the Green Channel which does not amount to smuggling, absolute confiscation may be disproportionate and redemption on payment of fine may be permitted.A Division Bench of Justices Nitin Wasudeo Sambre and Ajay Digpaul observed,“The release is permitted only upon payment of redemption fine and penalty, along with applicable duty. The orders under challenge therefore do not condone the violation and instead...

Voluntary Statements To Customs Officers Can Sustain Conviction: Supreme Court

The Supreme Court has recently reiterated that statements recorded by Customs officers under Section 108 of the Customs Act, 1962, constitute substantive evidence and can sustain a conviction if shown to be voluntary. A bench of Justice Vikram Nath and Justice Sandeep Mehta reaffirmed the Gujarat High Court's judgment holding that, “Statements recorded under Section 108 of the Customs Act, 1962 by duly authorized Customs Officers are admissible in evidence and do not attract the bar...

CESTAT Mumbai Sets Aside Customs Value Enhancement Based Solely On DRI Alert In Fabric Import Case

The Mumbai Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) on 19 February set aside the enhancement of value of imported knitted fabrics, holding that customs authorities cannot reject the declared transaction value solely on the basis of a DRI Alert and NIDB data without following the procedure prescribed under law. The Bench, comprising Judicial Member Dr. Suvendu Kumar Pati and Technical Member M.M. Parthiban, was hearing an appeal filed by Kumar Mahendra Exim...

Duty-Free Import Benefits Denied Over Unauthorised Diversion, Poor Record-Keeping: Madras High Court

The Madras High Court on 10 February, held that duty-free import benefits under the Advance Authorisation Scheme can be denied when the importer diverts the goods into the domestic market without authorisation.A Bench of Justice G.K. Ilanthiraiyan and Justice R. Poornima allowed the Department's appeals, arising from a batch of civil miscellaneous appeals filed by the Commissioner of Customs (Department) against the proprietor of Regin Agency, and Regin Exports.Setting aside the CESTAT's order,...

Incorrect Tariff Classification Not Enough To Invoke Extended Limitation Or Penalty: CESTAT Delhi

On 23 February, the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi held that mere misclassification of imported goods in a Bill of Entry cannot automatically lead to invocation of the extended period of limitation, confiscation of goods, or imposition of penalty in the absence of intent to evade duty. A Bench comprising the President Justice Dilip Gupta and Technical Member P.V. Subba Rao, partly allowed the appeal by iValue Infosolutions Private Limited, and set aside...

Supreme Court Dismisses Customs Review Plea Against IndiGo, SpiceJet In IGST Exemption Case On Reimported Aircraft Parts

The Supreme Court has recently dismissed review petitions filed by the Customs Department against its earlier judgment affirming relief granted to InterGlobe Aviation Limited, which operates IndiGo, in a dispute concerning the levy of Integrated Goods and Services Tax (IGST) on re-import of aircraft and parts sent abroad for repairs.A bench of Justice B.V. Nagarathna and Justice K.V. Viswanathan condoned the delay but declined to interfere with its earlier decision. The court held: ...