Responsibility Of Customs Broker Does Not Include Keeping Continuous Surveillance On Client: 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) of the Customs Brokers Licensing Regulations, 2018 does not include keeping continuous surveillance on the client.The bench of Dilip Gupta (President) and P.V. Subba Rao (Technical Member) has observed that the responsibility of the customs broker under Regulation 10(n) does not include keeping continuous surveillance on the client to...

Aircraft Used Only For Providing Non-Scheduled Passenger Services Entitled For Customs Exemption: CESTAT

The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the aircraft used only for providing non-scheduled passenger services is entitled to customs exemption.The bench of Binu Tamta (Judicial Member) and P. V. Subba Rao (Technical Member) has observed that the conditions of exemption notification were not complied with as the appellant therein had not used the aircraft for rendering any 'Air Transport Service' within the meaning of Rule 3(9) of the Aircraft...

Royalty Not Includible In Transaction Value Of Imported Raw Materials To Demand Any Differential Customs Duty: CESTAT

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the royalty is not included in the transaction value of the imported raw materials to demand any differential customs duty.The bench of Sulekha Beevi C.S. (Judicial Member) and Vasa Seshagiri Rao (Technical Member) has observed that the royalty payment is only for providing technical assistance for the manufacture and sale of licensed products, and the import of raw materials is incidental to such...

Customs Duty Amount Involved Is Less Than Threshold Limit: CESTAT Dismissed Dept.'s Appeal

The Chandigarh Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has dismissed the dept.'s appeal, in which the customs duty amount involved is less than Rs. 50 lakhs.The bench of S. S. Garg (Judicial Member) and P. Anjani Kumar (Technical Member) has observed that the appeals do fall within the instructions as prescribed in the circular dated November 2, 2023. The CESTAT, the High Courts, and the Supreme Court have been consistently dismissing the appeals of the Revenue if they are...

No Confiscation If Prior Permission Taken From Customs Dept. For Storage Of Non-Bonded Goods In Bonded Warehouse: CESTAT

The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the provisions of Sections 111(j) and 111(h) of the Customs Act cannot be invoked when prior permission is given by the customs authorities for the storage of non-bonded goods in a bonded warehouse after payment of due duty.The bench of S.K. Mohanty (Judicial Member) and M.M. Parthiban (Technical Member) has observed that all the imported bulk liquid cargo brought into the vessels was unloaded, stored,...

Statements Recorded Under Section 108 Of Customs Act, 1962 Are Admissible Before Court Of Law: CESTAT

The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that statements recorded under Section 108 of the Customs Act, 1962, are admissible before a court of law.The bench of Binu Tamta (Judicial Member) and P.V. Subba Rao (Judicial Member) has observed that the Customs Broker, in his statement recorded under Section 108, accepted that he has not verified the antecedents of the importer as the documents were handed over by Shri Badlani, an associate of Shri...

No Customs Duty Exemption Available To Battery Fuse Units, CESTAT Dismisses Bharti Airtel's Appeal

The Bangalore bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), while dismissing the appeal filed by Bharti Airtel, held that no customs duty exemption is available to battery fuse units (BFU).The bench of D.M. Misra (Judicial Member) and R. Bhagya Devi (Technical Member) has observed that the BFU is not an integral part of the communication system as claimed by Bharti Airtel. The appellant/assessee imported and cleared battery fuse units (BFU) under Chapter Heading 8529...

Obligation Of CHA Cannot Be Stretched To Undertake Background Check Of Client, Revoking Customs Brokers License Not Sustainable: CESTAT

The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the obligation of the Customs House Agent under Section 13(e) of the CHALR, 2004 cannot be stretched to it being obliged to undertake a further background check of the client. The bench of Binu Tamta (Judicial Member) and Hemambika R. Priya (Technical Member) has observed that Regulation 10(n) requires the customs broker to verify the identity of the client using reliable, independent, authentic...

Illegal Actions Of Importer Firms Subsequent To Cargo Clearance From Customs Station Does Not Make Customs Broker Liable: CESTAT

The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the illegal actions of the importer firms subsequent to the clearance of the cargo from the Customs Station do not attract a violation on the part of the Customs Broker.The bench of Binu Tamta (Judicial Member) and P.V. Subba Rao (Technical Member) has observed that the customs broker, in order to verify the existence of the premises of the two importer firms, sent letters by speed post asking them to...

Pair Of Bra Cups Are Used For One Brassier, Customs Duty Is To Be Charged On Value Of Pair: CESTAT

The Banglore Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that if a pair of bra cups is used for one brassier, customs duty is to be charged on the value of the pair.The bench of P. A. Augustian (Judicial Member) and R. Bhagya Devi (Technical Member) has observed that duty is to be charged on the value of the pair and not on a single piece. The packing list clearly shows the items were imported in pairs, and it is also a fact that a pair of bra cups is used for...

CESTAT Orders Absolute Confiscation Of Gold Smuggled Without Payment Of Customs Duty

The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has ordered the absolute confiscation of gold smuggled without the payment of customs duty.The bench of Rachna Gupta (Judicial Member) and Hemambika R. Priya (Technical Member) has observed that the gold was of foreign origin. It is also established that the appellants were attempting to smuggle the gold without payment of duty. The legal import of gold is governed by certain conditions, which the appellant does not...

Fire Incidence Beyond Control Of ONGC Petro, CESTAT Allows Customs Duty Remission

The Ahmedabad bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has allowed the customs duty remission on the goods that were destroyed as a result of the fire incident beyond the control of the assessee, ONGC Petro.The bench of Ramesh Nair (Judicial Member) and Raju (Technical Member) observed that the fire incident had taken place in the appellant's factory located in SEZ units. As per the survey report, it is clear that there is no negligence on the part of the...