Customs | Royalty For Technical Know-How Not 'Condition Of Sale' Even If Included In Value Of Imported Goods: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that royalty paid for technical know-how is not a 'condition of sale' merely because it is included in the value of imported goods. Justice Dilip Gupta (President) and Hemembika R. Priya (Technical Member) opined that both the Technical Agreements relate to transfer of technical know-how, amongst others, in the form of design sheets detailing manufacturing methods and specifications of raw...

Customs Act | Excel Sheet Recovered From Assessee's Email Can Be Relied Upon For Valuation Even Without S.138C Certificate: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that an Excel sheet recovered from the email account of the assessee can be relied upon to determine the value of imported goods, even without a certificate under Section 138C of the Customs Act, 1962. Section 138C of the Customs Act, 1962 would apply if the information is printed from a computer, and the certificate should certify that the computer was being used for the purpose of business...

Customs Authorities Lack Jurisdiction To Issue Directions Under GST Law: Madras High Court

The Madras High Court recently held that Customs authorities have no jurisdiction to issue directions under the Goods and Services Tax (GST) law. The Court struck down a February 2021 public notice issued by the Chennai Customs that sought to regulate the GST treatment on auctioned cargo.A single bench of Justice N Anand Venkatesh ruled that such powers lie exclusively with authorities designated under the GST Act."It is not known as to where the 1st respondent gets the power and jurisdiction to...

Customs Housing Agent Can Be Made Liable For Wrongdoings Of Employees, Must Exercise Due Diligence: Delhi High Court

The Delhi High Court has made it clear that a Customs Housing Agent is responsible for the actions of its employees and it must exercise due diligence in supervising their activities.A division bench of Justices Prathiba M. Singh and Shail Jain further held that a CHA may be held accountable for the wrongdoings of its employee but, the punishment in that regard has to be proportionate.The observations come in an appeal preferred by a CHA against revocation of its license over misdeclaration in...

Customs Brokers Licensing Regulations | 'Offence Report Need Not Be Penal'; 90-Day Period Begins Only Upon Receipt Of Report: Madras High Court

The Madras High Court stated that the offence report under Regulation 17(1) Customs Brokers Licensing Regulations, 2018, need not necessarily have a penal connotation. Also, it stated that the 90-day limitation period begins only upon receipt of the offence report.The bench stated that, "the offence report must be received by the office of the licensing authority, and the limitation period will start running only from the date of its receipt. Even if the licensing authority can be attributed...

Delhi High Court Directs Customs To Ensure Strict Implementation Of Minimum Import Price On Soda Ash

The Delhi High Court has directed the Customs authorities to ensure strict implementation of the Minimum Import Price (MIP) imposed by DGFT on Soda Ash, warning of stringent action in case of any violations.A division bench of Justices Prathiba M. Singh and Shail Jain gave “clear directions to all the Customs Authorities…to ensure that the Notification No. 46 of 2024-25 along with Notification No.23 of 2025-26 shall be implemented strictly in letter and spirit. If any Commissionerate of Customs,...

Customs Commissioner Cannot Reassess Duty On Warehoused Imports Cleared From Refineries Beyond His Jurisdiction: Gujarat High Court

The Gujarat High Court stated that the customs commissioner cannot reassess duty on warehoused imports cleared from refineries beyond his jurisdiction. Justices Bhargav D. Karia and Justice Pranav Trivedi agreed with the Tribunal that a proper officer having the administrative jurisdiction over the respective refineries where the goods were removed under section 67 of the Customs Act, 1962, only could have assumed the jurisdiction for reassessment and not the Commissioner, ...

Mens Rea Not Prerequisite For Imposing Penalty U/S 117 Of Customs Act: Karnataka High Court

The Karnataka High Court held that mens rea is not a prerequisite for imposing a penalty under Section 117 of the Customs Act. Section 117 of the Customs Act, 1962, addresses penalties for contraventions not specifically mentioned elsewhere in the Act. Justices S.G. Pandit and K.V. Aravind stated that a plain reading of Section 117 of the Act makes it clear that whenever any person contravenes any provision of the Act or fails to comply therewith, a penalty is attracted. Reading a...

Incorrect Declaration In Bill Of Entry Attracts Penalty U/S 114AA Of Customs Act: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) stated that imports and filing of the Bill of Entry are transactions of business under the Customs Act. Section 114AA would squarely apply to those transactions. In this case, the importer filed a Bill of Entry to clear goods imported by it and self-assessed the duty payable on them. The department examined...

Customs | FERA Penalty U/S 50 Not Applicable For Export Shortfall Below 10%; Exporter Can Write-Off Unrealised Bills: Madras High Court

The Madras High Court stated that the FERA (Foreign Exchange Regulation Act) penalty under Section 50 is not applicable for export shortfall below 10%; the exporter can write off unrealised bills. Justices S.M. Subramaniam and C. Saravanan stated that even otherwise, since Section 18(1)(a) of the Foreign Exchange Regulation Act is to be read along with Section 18(2) and Section 18(3) of the Foreign Exchange Regulation Act, penalty under Section 50 of the Foreign Exchange Regulation Act...

CESTAT Quashes ₹56.47 Crore Customs Duty Demand On Dish TV Over Smart Card Classification

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Principal Bench, New Delhi, recently set aside a ₹56.47 crore customs duty demand against Videocon D2H Limited (now Dish TV India Ltd) in a dispute over the classification of imported smart cards. A coram of Justice Dilip Gupta (President) and Technical Member P V Subba Rao quashed an order dated April 28, 2020, passed by the Additional Director General (Adjudication), DRI. The tribunal observed that “Merely because ...

Supreme Court Issues Notice To IndiGo On Plea Of Customs Dept & GST Council Against Ruling On IGST Exemption For Imported Parts

The Supreme Court on Monday sought a response from IndiGo's parent company, InterGlobe Aviation, on a petition filed by the Customs Department challenging a Delhi High Court ruling that exempted the airline from paying Integrated Goods and Services Tax (IGST) on imported aircraft parts that were repaired and serviced abroad.A Bench comprising Justice BV Nagarathna and Justice R Mahadevan issued notice to InterGlobe Aviation while hearing the department's plea against the March 2024 judgment of...