S.48 Customs Act | Exporter Cannot Stop Customs Action On Return Shipment By Disowning It: Delhi High Court

The Delhi High Court has recently held that an exporter cannot block the entry or processing of a return shipment merely by disowning the consignment, and that once the importer/exporter refuses to clear the goods, the statutory consequences under Section 48 of the Customs Act, 1962 must follow.For context, Section 48 provides the procedure to be followed where the goods are not cleared, warehoused, or transshipped within thirty days from the date of unloading. In the case at hand, the...

Re-Export Option Lapses If Redemption Fine Paid After 120 Days: Gujarat High Court

The Gujarat High Court on 6 February, held that the 120-day timeline for payment of redemption fine under Section 125(3) of the Customs Act, 1962 is mandatory, and failure to pay within this period renders the re-export option void. A Bench comprising Justice A.S. Supehia and Justice Pranav Trivedi dismissed the writ petition filed by Goodwill Industries, while directing the refund of Rs. 12 lakh redemption fine and retaining the Rs. 8 lakh penalty imposed by the Adjudicating Authority. The...

CESTAT Sets Aside Customs Broker Licence Revocation, Cites Contradictory Findings

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT) at Mumbai recently set aside the revocation of a Customs Broker licence after finding that the adjudicating authority recorded contradictory findings. A bench of Judicial Member S.K. Mohanty and Technical Member M.M. Parthiban allowed the appeal filed by Fairdeal Shipping Agency Pvt. Ltd. against the order of the Principal Commissioner of Customs (General), Mumbai. “Such apparent contradiction in the findings of the...

Supreme Court Issues Notice In Challenge To CESTAT Ruling That Customs Cannot Alter FOB Value Of Goods

The Supreme Court recently issued notice on an appeal filed by the Commissioner of Customs (Appeals) against a ruling of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi, which held that Customs officers cannot alter the Free on Board (FOB) value agreed upon between a buyer and seller. A Bench of Justice Pamidighantam Sri Narasimha and Justice Alok Aradhe directed that the matter be heard along with a connected appeal. The tribunal had framed the issue succinctly:...

CESTAT New Delhi Sets Aside Duty Demand Of Criticallog India, Holds BIS Not Required For Spare Parts

On Wednesday 18 February, the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi, set aside the duty demand, confiscation, and penalties that the authorities imposed on Criticallog India Pvt. Ltd. for imported “Memory” and “Power Supply” items. The Tribunal held that a BIS registration does not apply to spare parts imported for warranty replacement. A Bench comprising President Justice Dilip Gupta and Technical Member Ms. Hemambika R. Priya, ruled that the appellate...

Delhi High Court Grants Bail In NDPS Case, Says Customs Detention Without Magistrate's Authorisation Illegal

The Delhi High Court has recently granted bail to a foreign national accused in a narcotics smuggling case, holding that once contraband was partially recovered at the airport, Customs authorities were bound to arrest him and produce him before a Magistrate, and that his continued detention without judicial authorisation rendered the subsequent arrest illegal.Justice Manoj Jain observed, “The contraband contained in 19 capsules, suspected to be cocaine, was seized, and thus offence stood...

Customs Act | Once SCN States Market Value Of Seized Goods, Burden Lies On Noticee To Disprove It: Delhi High Court

The Delhi High Court has recently held that once the market value of goods seized by the Customs is specified in a show cause notice, the burden lies on the one who recieved notice to disprove the valuation with cogent material, and a mere denial is insufficient to seek interference in appellate proceedings.A division bench of Justices Nitin Wasudeo Sambre and Ajay Digpaul was hearing an importer's appeal challenging concurrent findings of the Customs adjudicating authority and CESTAT,...

Statements Recorded During Customs Probe Cannot Be Relied Upon Without Examining Witness Before Authority: CESTAT Delhi

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) at Delhi has recently set aside penalties of Rs 25 lakh each imposed on Committed Logistics Pvt. Ltd. and its Director Vikas Chaudhary, holding that statements recorded by customs officers cannot be treated as relevant evidence unless the mandatory procedure under the law is followed. A coram of President Justice Dilip Gupta, and Member P.V. Subba Rao held that the penalties were imposed solely on the basis of statements recorded...

CESTAT Sets Aside Penalty On Customs Broker, Says CHALR Violation Alone Insufficient

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi, has set aside a penalty imposed on a Customs Broker under Section 112(a)(i) of the Customs Act, holding that mere violation of the Customs House Agents Licensing Regulations, 2004 (CHALR) cannot by itself justify penalty under the Act in the absence of specific allegations and material showing knowledge. A coram of President Justice Dilip Gupta and Technical Member P.V. Subba Rao allowed the appeal filed by Cargo...

CESTAT Chennai Holds Software Part Of Hardware Value, Reduces Duty Demand On Wipro

The Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the value of software supplied along with imported networking equipment by Wipro (Infotech Group) is includible in the assessable value of the hardware for the purpose of levying customs duty.The Bench, comprising Judicial Member P. Dinesha and Technical Member Vasa Seshagiri Rao, partly allowed the appeal by restricting the demand to the normal period of limitation, while setting aside the...

CESTAT Mumbai Sets Aside Rs. 63.36 Lakh IGST Demand On Quality Systems, Confirms Tax At 12%

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 13 February set aside a demand of Rs. 63.36 lakh towards differential IGST on parts of poultry-keeping machinery, holding that payment of GST at 12% by Quality Systems and Equipments Pvt. Ltd. was proper in view of subsequent CBIC clarifications. A Bench comprising Dr. Suvendu Kumar Pati (Judicial Member) and Mr. M.M. Parthiban (Technical Member) allowed the appeal filed by the company against the...

DEEC Licence Must Be Valid On Date Of Warehouse Clearance To Claim Customs Exemption: Supreme Court

The Supreme Court of India has recently reiterated that in the case of warehoused goods, customs duty liability arises on the date of actual clearance from the warehouse, and an importer cannot claim exemption under a DEEC advance licence if the licence has expired by then.Upholding the High Court's decision, a bench of Justices Manmohan and Vipul M. Pancholi ruled that entitlement to exemption must subsist on the date duty is assessed. “From the aforesaid provisions, it is evident that the...