Non-Declaration Of Gold At Green Channel Not Always Smuggling: Delhi High Court

The Delhi High Court has recently held that in a case of non-declaration of gold at the Green Channel which does not amount to smuggling, absolute confiscation may be disproportionate and redemption on payment of fine may be permitted.A Division Bench of Justices Nitin Wasudeo Sambre and Ajay Digpaul observed,“The release is permitted only upon payment of redemption fine and penalty, along with applicable duty. The orders under challenge therefore do not condone the violation and instead...

Voluntary Statements To Customs Officers Can Sustain Conviction: Supreme Court

The Supreme Court has recently reiterated that statements recorded by Customs officers under Section 108 of the Customs Act, 1962, constitute substantive evidence and can sustain a conviction if shown to be voluntary. A bench of Justice Vikram Nath and Justice Sandeep Mehta reaffirmed the Gujarat High Court's judgment holding that, “Statements recorded under Section 108 of the Customs Act, 1962 by duly authorized Customs Officers are admissible in evidence and do not attract the bar...

CESTAT Mumbai Sets Aside Customs Value Enhancement Based Solely On DRI Alert In Fabric Import Case

The Mumbai Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) on 19 February set aside the enhancement of value of imported knitted fabrics, holding that customs authorities cannot reject the declared transaction value solely on the basis of a DRI Alert and NIDB data without following the procedure prescribed under law. The Bench, comprising Judicial Member Dr. Suvendu Kumar Pati and Technical Member M.M. Parthiban, was hearing an appeal filed by Kumar Mahendra Exim...

Duty-Free Import Benefits Denied Over Unauthorised Diversion, Poor Record-Keeping: Madras High Court

The Madras High Court on 10 February, held that duty-free import benefits under the Advance Authorisation Scheme can be denied when the importer diverts the goods into the domestic market without authorisation.A Bench of Justice G.K. Ilanthiraiyan and Justice R. Poornima allowed the Department's appeals, arising from a batch of civil miscellaneous appeals filed by the Commissioner of Customs (Department) against the proprietor of Regin Agency, and Regin Exports.Setting aside the CESTAT's order,...

Incorrect Tariff Classification Not Enough To Invoke Extended Limitation Or Penalty: CESTAT Delhi

On 23 February, the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi held that mere misclassification of imported goods in a Bill of Entry cannot automatically lead to invocation of the extended period of limitation, confiscation of goods, or imposition of penalty in the absence of intent to evade duty. A Bench comprising the President Justice Dilip Gupta and Technical Member P.V. Subba Rao, partly allowed the appeal by iValue Infosolutions Private Limited, and set aside...

Supreme Court Dismisses Customs Review Plea Against IndiGo, SpiceJet In IGST Exemption Case On Reimported Aircraft Parts

The Supreme Court has recently dismissed review petitions filed by the Customs Department against its earlier judgment affirming relief granted to InterGlobe Aviation Limited, which operates IndiGo, in a dispute concerning the levy of Integrated Goods and Services Tax (IGST) on re-import of aircraft and parts sent abroad for repairs.A bench of Justice B.V. Nagarathna and Justice K.V. Viswanathan condoned the delay but declined to interfere with its earlier decision. The court held: ...

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...