Goods Loaded Without Proper Documents Can't Be Exported Without Clearance By Customs Officials: CESTAT Kolkata Sets Aside Penalty

Stating that goods wrongly loaded by the steamer agent could not have been exported without clearance by the Customs officials themselves, the Customs, Excise & Service Tax Appellate Tribunal at Kolkata set aside the penalty imposed under Section 114 of the Customs Act, 1962. The provision stipulates a penalty for attempting to export goods improperly. The Appellant, a steamer agent, was saddled with Rs. 2 lakh penalty for exporting goods without Let Export Order (LEO). Noting...

Customs Dept Should Serve Notices By Email In Addition To Post, Will Prevent Delay And Non-Appearances: Delhi High Court

The Delhi High Court recently called upon the Customs Department to make use of Section 153(c) of the Customs Act, 1962 which empowers it to serve notices through email. A division bench of Justices Prathiba M. Singh and Amit Sharma said such an approach will prevent delay and non-appearances, leading to expeditious disposal of matters. “In the opinion of this Court, the provision itself makes it clear that notices can be sent by email…The Customs Department ought to in future...

S.28 Customs Act | Keeping Matter In Call Book, Taking It Up After Several Years Is Not Permissible: Delhi HC Quashes SCN

The Delhi High Court has cautioned the Customs Authorities against keeping show-cause notices pending in call-book only to take them up after several years, leaving the assessee in lurch. A division bench of Justices Prathiba M. Singh and Amit Sharma observed that in the absence of any “glaring impossibility”, such an approach of the authorities would not be permissible. In the case at hand, Petitioner challenged the delay of almost eight years in adjudication of the show-cause notice...

Subsequent Purchaser Of Imported Vehicle Cannot Be Asked To Pay Customs Duty; Liability On Importer : Supreme Court

The Supreme Court ruled that the 'subsequent purchaser' of an imported motor car cannot be called an 'importer' to attract the liability under the Customs Act, 1962 to pay customs duty on the import of the vehicle. The bench comprising Justice BV Nagarathna and Justice N Kotiswar Singh heard the appeal preferred by the subsequent purchaser of a Porsche Car against the High Court's decision upholding the demand of custom duty of ₹17,92,847 from the appellant along with other individuals on the...

Payments Made During Investigation Without SCN Do Not Constitute Payments Against Demand: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the payment made by the assessee during an investigation, without any Show Cause Notice, cannot be considered as payment against a demand raised by the Department without even going into the merits of the nature of demand. The Bench of Dr. Rachna Gupta (Judicial Member) has observed that “any amount received during investigation is Revenue Deposit hence cannot be retained for want of...

No Evidence Of Over-Valuation Of Goods; Transaction Value Wrongly Rejected Under Rule 8 of Customs Valuation Rules: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that there is no evidence of over-valuation of Goods and the transaction value has been wrongly rejected under Rule 8 of Customs Valuation Rules. Section 113 of the Customs Act, 1952 provides the list of goods that are liable to be confiscation if they are attempted to be improperly exported. Section 113 (a) of the Customs Act, 1952 provides that the goods are liable for confiscation if...

EPS-ECU Meant Solely For Use In Automobiles With Power Steering: CESTAT Delhi Classifies Same Under CTI 8708 94 00

While finding that the EPS-ECU is meant solely for use in automobiles with power steering, the CESTAT New Delhi held that EPS-ECU, which is essentially a part of an automobile specifically designed to be a part of power steering and which has no other function, cannot be classified in the general residual entry of electrical machines and equipment. Hence, the CESTAT classified the EPS-ECU and its sub-assembly under CTI 8708 94 00. The Tribunal held so while deciding about the...

Attempt To Export SCOMET Item Without Authorization Is Serious Violation; CESTAT Upholds Penalty Against Customs Broker

The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that an attempt to export specialized chemicals, organisms, machinery, equipment, and technology (SCOMET) items without the required authorization is a serious violation.The bench of Justice Dilip Gupta (President) and P. V. Subba Rao (Technical Member) has observed that there is no evidence of the appellant/customs broker profiting from the attempted export of triethanolamine. Action has been taken against...

Samsung India Entitled To Customs Duty Exemption On Imported IC-Codecs: CESTAT

The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that Samsung India is entitled to customs duty exemption on imported IC-Codecs.The bench of Justice Dilip Gupta (President) and P. V. Subba Rao (Technical Member) has observed that HSN Explanatory Notes to CTH 8542 provide that monolithic ICs may be in the form of un-diced wafers. The IC-Codecs, as imported by the appellant, are in the form of rolls, i.e., un-diced wafers. It, therefore, clearly follows that...

Hybrid/Pure Matrix Cards For PTN Equipment Classifiable Under CTI 8517 70 10: CESTAT Quashes Customs Duty Against Vodafone Idea

The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that Hybrid/Pure Matrix Cards for PTN Equipment would be classifiable under CTI 8517 70 10 as “parts of goods, and Small Form Factor Pluggable for Packet Transport Network (PTN) Equipment would be classifiable under CTI 8517 70 90.The bench of Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) has observed that NIC is effectively a translator, which allows a computer to communicate with a...

Customs Brokers Not Liable Once Verification Of Address Is Completed: Delhi CESTAT

The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the responsibility of the customs broker under Regulation 10(n) does not include keeping continuous surveillance on the client to ensure that he continues to operate from that address and has not changed his operations. The bench of Rachna Gupta (Judicial Member) and P. V. Subba Rao (Technical Member) observed that once verification of the address is completed by a Customs Broker, if the client moves to...

Dept. Can't Challenge Customs Duty Demand, Below Threshold Limit Prescribed By CBIC: CESTAT

The Chandigarh bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), while dismissing the department's appeal, held that the department is precluded from challenging the commissioner's order if customs duty demand is below the threshold limit prescribed by the Central Board of Indirect Taxes and Customs (CBIC).The bench of S. S. Garg (Judicial Member) and P. Anjani Kumar (Technical Member) has observed that the amount of duty involved in the appeal is below the threshold...