L.G. Electronics Not Entitled To Claim Concessional Rate Of Basic Customs Duty On Import Of G-Watch: CESTAT

The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the assessee, L.G. Electronics, is not entitled to claim the concessional rate of basic customs duty on the import of G-Watch.The bench of Rachna Gupta (Judicial Member) and Hemambika R. Priya (Technical Member) has observed that once the G-Watch works on the internet, it is not acceptable that its essential character remains that of timekeeping only. Thus, the section notes and chapter notes of Chapter...

Canned Pineapple Slices Classifiable Under Customs Tariff Heading No. 0804, Exemption Not Applicable: CESTAT

The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that canned pineapple slices’ are classifiable under Customs Tariff Heading No. 0804.The bench of Rachna Gupta (Judicial Member) and Hemambika R. Priya (Technical Member) has observed that there was confusion in the department itself regarding the classification of canned sliced pineapples. It has been submitted that there is a ruling dated September 17, 2018, by the AAAR in their own group firm, M/s Bharat...

Iron Ore Fines Are Exempted From Payment Of Customs Duty: CESTAT

The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that iron ore fines were exempted from payment of duty.The bench of Ashok Jindal (Judicial Member) and Rajeev Tandon (Technical Member) has observed that a let export order cannot be issued before payment of full duty by the assessee. In those circumstances, it cannot be said that a let export order was issued to the appellant on December 6, 2008. Therefore, the date of the export order is to be taken as...

Redemption Fine And Customs Duty Not Required To Be Paid When Goods Are Allowed To Be Re-Exported: CESTAT

The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that when the goods are allowed to be re-exported, neither the redemption fine nor duty is required to be paid. At the same time, the penalty is also not to be imposed on the importers.The bench of Anil G. Shakkarwar (a technical member) allowed the six appeals and observed that a penalty to the extent of 20% of the assessable value of the goods confiscated and ordered for re-export was imposed, and the...

Shore Tank Receipt Quantity Of IOCL, BPCL, HPCL As Per Ex-Bond Bills Of Entry Are Basis For Calculation Of Customs Duty: CESTAT

The Ahmedabad Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the shore tank receipt quantity of Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL) as shown in ex-bond bills of entry is to be taken for calculation of the customs duty.The bench of Ramesh Nair (Judicial Member) and C.L. Mahar (Technical Member) has observed that there are various reasons for the bill of...

CESTAT Quashes Confiscation Of Goods, Imposition Of Redemption Fine, Penalty, Customs Duty Demand In Absence Of CLRI Report

The Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that it quashes confiscation of goods, imposition of redemption fines, penalties, and customs duty demands in the absence of the Central Leather Research Institute, Chennai (CLRI) Report.The bench of Sulekha Beevi C.S. (Judicial Member) and Vasa Seshagiri Rao (Technical Member) has observed that the CLRI report is a very crucial document in deciding the issue as to whether the impugned goods are...

Customs Broker Licence Can’t Be Revoked On Mere Charge Of Mis–Declaration And Undervaluation Of The Illegal Imports: CESTAT

The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the licence cannot be revoked on a mere charge of misdeclaration and undervaluation of illegal imports.The bench of Binu Tamta (Judicial Member) and Hemambika R. Priya (Technical Member) has observed that the punishment has to be commensurate with the misconduct and that the charges against the appellant/customs broker are not so grave that the extreme punishment of revocation of licence is called...

Interconnectivity Utility Charges From Indian Customers/End Users Can’t Be Considered As Royalty/FTS: CESTAT

The Banglore Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that payments received by the assessee towards interconnectivity utility charges from Indian customers or end users cannot be considered royalties or fees for technical services (FTS).The bench of Beena Pillai (Judicial Member) and Chandra Poojari (Accountant Member) has observed that the payment received by the non-resident assessee amounts to the business profits of the assessee, which are taxable...

Wired Headset Not A Part Of Any Mobile Phone: CESTAT Allows Customs Duty Exemption

The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has allowed the customs duty exemption on Earphones.The bench of Dr. Rachna Gupta (Judicial Member) and P. V. Subba Rao (Technical Member) has observed that all goods falling under CTH 8518 are exempted by S. No. 18 of the notification, excluding some ‘parts of the cellular mobile phones’ including ‘headsets’. S. No. 18 does not exclude all earphones but only headsets, which are parts of cellular mobile phones....

CESTAT Allows Interest On Auction Sale Proceeds From The Date The Amount Has Been Received By The Customs Dept., Till The Date Of Disbursal

The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has allowed interest on the auction sale proceeds from the date the amount was received by the Customs Department until the date of disbursal.The Bench of Anil Choudhary, (Judicial Member), has observed that the department shall disburse the number of sale proceeds pursuant to auction sales by only adjusting the amount of penalty. No redemption fine can be adjusted.The appellants/assessees imported rough...

Penalty Under Section 114 A Of The Customs Act Is Invariably Linked To The Quantum Of Duty Evaded: CESTAT

The Chandigarh Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the penalty under Section 114 A of the Customs Act is invariably linked to the quantum of duty evaded.The bench of S. S. Garg (Judicial Member) and P. Anjani Kumar (Technical Member) has observed that the appellant has not violated the provisions intentionally and that there is no mens rea or any motive that can be attributed to the appellant. Neither Section 111 nor Section 112 of the Customs...

Suspension Of The Licence Of Broker Is Not Warranted After The Investigation And Issue Of Show Cause Notice: CESTAT

The Kolkata Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that suspension of the license is not warranted after investigation and the issuing of a show cause notice.The bench of P.K. Choudhary (Judicial Member) and K. Anpazhakan (Technical Member) has observed that immediate suspension of the customs broker is warranted when there is an apprehension that the customs broker may interfere in the investigation or tamper with any evidence that will be detrimental...