CUSTOMS
Vessel Engaged Under SEAIOCM Agreement Qualifies As 'Foreign Going Vessel' For Exemption U/S 87 Of Customs Act: Kerala High Court
The Kerala High Court stated that vessel engaged under SEAIOCM agreement qualified as 'foreign going vessel' for exemption under section 87 Of Customs Act. The Bench consists of Justices A.K. Jayasankaran Nambiar and P.M. Manoj was addressing the issue of whether in the backdrop of the terms of engagement of the vessel under the SEAIOCM Agreement, the vessel can be categorized as a foreign going vessel for the purposes of claiming exemption under Section 87 of the Customs Act. In ...
Import Of Inverter Component Without Photo-Voltaic Cell Not Eligible For Customs Duty Exemption: Kerala High Court
The Kerala High Court stated that import of inverter component without photo-voltaic cell not eligible for customs duty exemption. “Inasmuch as the import was only of the inverter component, without the photo-voltaic cell - a component that was essential for harnessing solar energy, which could then be routed through the inverter system for the supply of electrical energy to the grid, the assessee cannot be seen as eligible for the benefit of the exemption notification……” stated the...
Circular Clarifying Previous Notifications On Fiscal Duty Has Retrospective Effect : Supreme Court
The Supreme Court recently held that a circular/notification issued by the revenue department, clarifying or explaining a fiscal regulation, has to be given retrospective effect.In the facts of the case at hand, the Court held that a Circular dated 17.09.2010 issued by the Central Board of Excise and Customs (CBEC) had to be given retrospective effect as it clarified certain previous notifications on customs duty.It was opined that, being explanatory in nature, the Circular could not be...
S.27 Customs Act Or Doctrine Of Unjust Enrichment Won't Apply To Refund Of Bank Guarantee : Supreme Court Allows Patanjali Plea
The Supreme Court has held that Section 27 of the Customs Act, which requires a person seeking refund of duty to show that the burden was not passed on to the customer, is not applicable when refund is sought of a wrongly invoked bank guarantee.This is because encashment of bank guarantees by the Customs Department cannot be treated as payment of customs duty. Hence, neither Section 27 nor the doctrine of unjust enrichment is applicable. Holding so, the Supreme Court allowed the...
Penalty Can't Be Imposed U/S 114AA Of Customs Act On Broker Merely For Failing To Physically Verify Importer's Premises: CESTAT
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that penalty can't be imposed under Section 114AA Customs Act on customs broker merely for failing to physically verify the importer's premises. The Bench of Justice Dilip Gupta (President) and Hemambika R. Priya (Technical Member) has observed that “the allegations that the appellant did not physically verify the premises of the importer, are not sufficient to fasten the appellant with the...
Customs Act Grants Unfettered Investigative Powers Where Infraction Is Suspected: Patna High Court
The Patna High Court has held in a recent judgement that the Customs Act, 1962 provides 'unfettered power' to investigate where there are reasons to believe that there has been infraction of its provisions.Presiding over the case, Justice Mohit Kumar Shah, observed, “The investigation cannot be nipped in the bud and be prevented simply on the basis of certain technicalities. The Customs Act provides unfettered power to investigate where there are reasons to believe that there has been infraction...
Customs Act | Engineering Services Fees Having Direct Nexus With Import Of Goods Fall Within Assessable Customs Value : Supreme Court
The Supreme Court yesterday (May 1) ruled that engineering and technical service fees paid by the importer must be included in the assessable value of imported spare parts under the Customs Act, 1962. The bench of Justices Abhay S. Oka and Ujjal Bhuyan upheld that the 8% technical and engineering fee charged to the appellant(Coal India) should be included in the assessable value for determining customs duty. It was the case where the appellant floated a tender for spare parts for P&H...
Customs' Decision To Prefer Revision Plea Against Order To Release Goods Not Grounds To Withhold Them: Delhi High Court
The Delhi High Court has held that the Customs Department cannot sit over an appellate body's order directing it to release the goods of an assessee, merely on the ground that the Department seeks to prefer a revision against such order.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta held, “once the Commissioner of Customs (Appeals) has also allowed redemption, the decision to file revision cannot be a ground to withhold the release of the goods. Further, there is no stay...
Sikh People Usually Wear 'Kada', Personal Effect: Delhi High Court Sets Aside Detention By Customs
Observing that Sikh persons usually wear kada as part of their religious practice, the Delhi High Court set aside the detention of a Dubai resident's gold kada by the Customs Department.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta observed, “Clearly, a perusal of the photographs and the fact that it is one Kada which is usually worn by persons like the Petitioner who are Sikhs, leaves no doubt in the mind of the Court that the same was a personal effect of the...
'Digital Still Image Video Cameras' Imported By Assessee Entitled To Basic Customs Duty Exemption: CESTAT
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that 'digital still image video cameras' imported by assessee is entitled to basic customs duty exemption. The Bench of Justice Dilip Gupta (Judicial Member) and P.V. Subba Rao (Technical Member) observed that what was to be examined was whether the demand confirmed for the normal period of limitation contemplated under section 28(1) of the Customs Act for the reason that 'digital still image...
Customs Officer Is A Stranger To Contract Of Sale, Cannot Re-Determine FOB Value: CESTAT
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that no stranger to the contract of sale, including the Customs officer, has any right to re-determine the FOB or transactional value of goods. The Free on Board or (FOB )is one of the INCOTERMS – which are the terms used in international commerce. The INCOTERMS make the costs, risks and liabilities of the buyer and seller explicit. If the goods are exported on FOB basis, the seller is...
Goods Exempted From Customs Duty, May Still Be Subject To Levy Of Additional Duty Under Respective Enactments: Madras High Court
The Madras High Court stated that goods imported exempted from basic customs duty, may still be subject to levy of additional duty under respective enactments. “The goods imported, even though exempted from basic customs duty, may still be subject to levy of additional duty under the respective enactments and they would be so subject unless and until they are specifically exempted by the competent authority in exercise of the powers vested under those respective enactments from such...