Delhi High Court Orders Customs To Release Padma Bhushan Awardee's Imported Artwork Amidst Dispute Over Valuation

The Delhi High Court has ordered the Customs Department to release the artwork of Padma Bhushan awardee Late BC Sanyal, seized amid a dispute surrounding its valuation.A division bench of Justices Prathiba M. Singh and Shail Jain observed there is no conclusive proof that the artwork was made in Pakistan, as claimed by the Department.“The bill of entry itself reveals that the import is being effected from Dubai,” it observed.The Court was dealing with a petition filed by the proprietor of M/s...

Preloaded Software On Imported Navigation Devices Liable To Customs Duty: CESTAT

The Bangalore Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that value of preloaded software to be included in assessable value of imported navigation devices and is liable to customs duty. Dr. D.M. Misra (Judicial Member) and Pullela Nageswara Rao (Technical Member) were addressing the issue of whether the value of software preloaded/ etched into the imported navigation systems, be included in the assessable value of the said navigation systems and...

Passenger's Non-Appearance For Appraising Seized Goods Doesn't Stop Limitation For Issuing SCN: Delhi High Court Tells Customs

The Delhi High Court has made it clear that the Customs Department cannot exceed the limitation period prescribed for issuance of show cause notice after detention of goods, merely on the ground that the person from whom goods were seized did not appear for appraisement.A division bench of Justices Prathiba M. Singh and Shail Jain observed,“non-appearance for appraisement does not stop the limitation for the issuance of the SCN in terms of Section 110 of Customs Act, 1962.”Section 110 of the...

Govt Is Promoting Start-Up Culture, Customs Should Be Sensitive In Proceedings Against Them: Delhi High Court

The Delhi High Court has asked the Central Board of Indirect Taxes and Customs to consider whether some “preferential treatment” ought to be given to Start-ups and MSMEs in terms of timelines, warehousing and provisional release in cases of misdeclaration of goods, especially in case of low value consignments.A division bench of Justices Prathiba M. Singh and Shail Jain observed that considering the prevailing policy in India to encourage start-ups and MSMEs, the Customs Department also needs to...

Customs Act | Electronic Evidence Admissible Without S.138C(4) Certificate If Assessee's S.108 Statement Admits Contents : Supreme Court

The Supreme Court recently held that electronic evidence seized by the Directorate of Revenue Intelligence (“DRI”) can be admissible even without a certificate under Section 138C(4) of the Customs Act, if the assessees has acknowledged these the documents in the devices in their statements under Section 108 of the Customs Act.Section 138C (4) of the Customs Act requires the production of a certificate, similar to the mandate under Section 65B (4) of the Evidence Act for proving electronic...

Supreme Court Directs DGFT & CBIC To Update Tech Systems To Ensure Genuine Exporters Don't Lose Benefits Over Clerical Errors

The Supreme Court observed that an exporter cannot be denied legitimate entitlements under the government's incentive schemes merely because of an inadvertent clerical error that was later corrected through statutory processes. Holding thus, a bench of Justices Aravind Kumar and NV Anjaria ruled in favour of an exporter who was denied a claim for benefits under the Merchandise Exports from India Scheme (MEIS) just because the column declaring “intent to claim MEIS” in the shipping bills was...

'Mere Prospect Of Filing Review Not Grounds To Hold Seized Goods': Delhi High Court Orders Customs To Release Woman's Gold Jewellery

The Delhi High Court has granted relief to a Muslim woman whose gold bangles were seized by the Customs Department on return from Mecca and were withheld despite an order of the Adjudicating Authority, directing release.A division bench of Justices Prathiba M. Singh and Shail Jain observed that merely because the Department plans to seek a review of the order for return, as upheld by the Appellate Authority, is not grounds to withhold the return of seized articles.Four gold bangles were seized...

Import Of Counterfeit iPhones Dilutes Brand Equity, Affects Consumer Welfare: Delhi High Court In Customs Fraud Case

The Delhi High Court has expressed concern over alleged import of counterfeit iPhones, stating that such imports not only affect brand owners but also adversely affect consumer welfare— as old and used products could get re-branded as new ones.A division bench of Justices Prathiba M. Singh and Shail Jain thus observed,“Consumers in India may be made to pay more for used, second hand or counterfeit products under the impression that they are original branded products. Such imports also have an...

Customs Wrongly Treated 998 Purity Gold Jewellery As Prohibited Goods Under Baggage Rules: Delhi High Court Grants Relief To Traveller

The Delhi High Court recently granted relief to a woman whose 998 purity (equivalent to 24 karat) gold jewellery was treated as prohibited goods under the Baggage Rules 2016, and absolutely confiscated by the Customs Department on her return to the country.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta observed,“On the aspect of personal effects and jewellery, the Adjudicating Authority has merely held that because of the purity, the same cannot be considered as personal...

Goods Used As Implants Or Rehabilitation Aids Are Eligible For Customs Duty Exemption: CESTAT

The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that goods used as implants or rehabilitation aids are eligible for Customs Duty exemption. S.K. Mohanty (Judicial Member) and M.M. Parthiban (Technical Member) observed that “since, the implants such as repair of knee, hip and other joints, shoulder and various other parts of the body; repair of soft tissue injuries and degenerative conditions of the shoulder etc., are in the nature of...

Section 114 AA Customs Act Applicable Only For Dummy Exports Made Only On Paper, Not Actual Export Of Goods: CESTAT

The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that Section 114 AA Customs Act is applicable only for dummy exports made only on paper, not actual export of goods. Section 114AA of the Customs Act, 1962, penalizes the use of false or incorrect declarations, statements, or documents in any transaction related to customs business. Specifically, it applies to individuals who knowingly or intentionally make, sign, use, or cause to be made,...

Customs Act | Adjudicating Authority Can't Decline Refund Of Excess Duty In Presence Of CA's Certificate: Delhi High Court

The Delhi High Court has made it clear that the Customs authority cannot, in absence of some evidence, decline refund of excess duty paid by a trader when the latter furnishes certificates from a qualified chartered accountant in support of its case.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta thus dismissed the Department's appeal against Nokia.Nokia sought refund of excess duty paid on import of mobile handsets. While the goods were exempted by the Central government...