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...

No Vested Right To Redeem Confiscated Prohibited Goods Under Customs Act: Delhi High Court

The Delhi High Court has recently held that redemption of confiscated goods under Section 125 of the Customs Act, 1962 is not a vested or automatic right, particularly where the goods are prohibited for import.Dismissing the writ petition filed by an importer challenging the absolute confiscation of areca nuts, the division bench of Justices Nitin Wasudeo Sambre and Ajay Digpaul observed,“Section 125(1) of the Customs Act employs the expression “may”, thereby conferring discretion upon the...

Supreme Court Upholds Delhi High Court Ruling On Duty Drawback For Unlocked Mobile Phones

The Supreme Court has recently dismissed a Special Leave Petition filed by Customs, thereby letting stand a Delhi High Court ruling that unlocking or activating mobile phones prior to export does not disentitle exporters from claiming duty drawback. By an order dated January 30, 2026, a Bench of Justices J.B. Pardiwala and Joymalya Bagchi declined to interfere with the Delhi High Court's judgment, observing that it found “no good ground to interfere with the impugned order passed by the High...

CESTAT Allows Nil Basic Customs Duty On Sterling Silver Jewellery Imported From Thailand

The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) recently allowed a jeweller to claim nil basic customs duty on sterling silver jewellery imported from Thailand, ruling that customs authorities were wrong to deny the benefit just because the importer did not provide some information. Nil basic customs duty refers to zero customs duty payable on certain imports under applicable trade agreements. A Bench comprising Judicial Member Dr. Rachna Gupta was...

Bulk Imported Nutraceutical Ingredients Cannot Be Classified As "Edible Preparations": CESTAT Delhi

The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that nutraceutical ingredients imported in bulk cannot be classified as “edible preparations” and therefore do not attract a higher customs duty. The Bench, comprising President Justice Dilip Gupta and Technical Member Hemambika R. Priya, set aside a customs duty demand of Rs. 7 crore raised against Sundyota Numandis Probioceutical Private Limited on allegations of misclassification of imported...

Supreme Court Issues Notice On Challenge To Delhi HC View That Customs Need Not Communicate Adjudication Time Extension

The Supreme Court recently (February 6) issued notice in a challenge to a Delhi High Court ruling that held that customs authorities were not required to communicate an extension granted for completing adjudication proceedings and directed that the matter be heard along with a pending appeal. A bench comprising Justices P.S. Narasimha and Alok Aradhe issued notice in the special leave petition filed by Pranij Heights India Pvt. Ltd. and directed that it be listed along with the pending SLP in...

CESTAT Delhi Denies Customs Exemption For IMFA Helicopter Used In Non-Revenue Flights

The Customs, Excise and Service Tax Appellate Tribunal at New Delhi has reiterated that non-revenue flights cannot qualify as air transport services for customs duty exemption. “Flight service for no remuneration at all would not qualify to be considered as air transport service,” the tribunal noted, relying on the Delhi High Court's ruling in East India Hotels Ltd. while examining the use of an imported helicopter. A Bench of President Justice Dilip Gupta and Technical Member Hemambika R....