FSSAI Alone Can Certify Imported Food Safety; Customs Can Sample For Classification: Calcutta High Court

The Calcutta High Court has held that only an authorised officer of the Food Safety and Standards Authority of India (FSSAI) is competent to draw samples of imported food products to determine whether they are safe and fit for human consumption. It clarified that Customs authorities may independently draw samples only for customs purposes such as classification, valuation, duty liability and investigation of possible misdeclaration. Justice Smita Das De held, "In concise, the FSSAI Authorised...

CESTAT Mumbai Sets Aside Extended Limitation Against boAt Maker In Bluetooth Earphones Customs Dispute

The Mumbai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the extended limitation period could not be invoked against Imagine Marketing Ltd., the company behind the boAt brand, in a dispute over the tariff classification of imported wireless Bluetooth earphones. The tribunal found that the dispute was purely interpretational and that the Department had failed to establish collusion, wilful misstatement or suppression of facts"There is no element of...

CESTAT Delhi Upholds Inclusion Of Downloaded Software Licence Value In Imported Dongles' Customs Value

The Principal Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), New Delhi, has upheld the inclusion of the value of software licences downloaded from the internet in the assessable value of imported hardware locks (dongles). It held that the downloaded software formed an integral part of the imported product and that its value formed part of the transaction value.A coram of Officiating President Dr. Rachna Gupta and Technical Member Hemambika R. Priya dismissed the...

Indian Authorities Cannot Assail Authenticated Thailand Certificate Of Origin: Bombay High Court

The Bombay High Court has dismissed the Customs Department's appeal against a jewellery importer, holding that once the designated authority in Thailand has authenticated a Certificate of Origin (CoO), Indian Customs authorities cannot reopen its authenticity or deny the benefit of concessional duty under the Indo–Thailand Free Trade Agreement (FTA). The court also held that statements recorded under Section 108 of the Customs Act, 1962, cannot override an authenticated Certificate of Origin.A...

CESTAT Kolkata Sets Aside Interest Demand On Dalmia Cement's Capital Goods Imported Under MOOWR Scheme

The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has set aside the interest demand raised against Dalmia Cement (Bharat) Ltd. on customs duty paid while clearing imported capital goods from its bonded warehouse. The tribunal held that interest could not be demanded merely because the goods were cleared for home consumption without being put to use, where they had been imported with the intention of being used in manufacturing.Relying on Supreme Court...

CESTAT Chennai Reiterates NIDB Data Alone Cannot Justify Rejection Of Declared Import Value

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has reiterated that the National Import Database (NIDB) data alone cannot justify rejection of the declared transaction value of imported goods or enhancement of their assessable value. It held that the Customs Department must produce independent evidence of undervaluation and establish the comparability of contemporaneous imports before discarding the declared value.A coram of Judicial Member Ajayan T.V. and...

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: ...