Crossing Green Channel With Gold Hidden In Paste Form Shows Intent To Smuggle: CESTAT Hyderabad

The Hyderabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that a passenger's concealment of gold in paste form on the body and crossing the green channel at an international airport clearly establishes intent to smuggle, justifying absolute confiscation and penalty under the Customs Act, 1962. A single-member bench of Judicial Member Angad Prasad observed that concealment and non-declaration after opting for the green channel show deliberate evasion: "Once...

Paddy Reaper Without Binder Not Eligible For Customs Duty Exemption: CESTAT Chennai

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 18 March, held that paddy reapers imported without a binder attachment cannot claim concessional duty under Notification No. 12/2012-Cus., which applies only to “reaper-cum-binder” machines. A Bench of Judicial Member P. Dinesha and Technical Member Vasa Seshagiri Rao partly allowed the appeal filed by VST Tillers Tractors Ltd., while also holding that confiscation and penalty cannot be imposed where there...

Once Goods Found Of Indian Origin, Customs Seizure Arbitrary And Malafide: Allahabad High Court

The Allahabad High Court at Lucknow has expressed surprise at the seizure and detention of areca nuts by the customs authority on the ground that they were of foreign origin despite one lab test indicating Indian origin and a government laboratory test failing to determine their origin. The bench of Justice Shekhar B. Saraf and Justice Manjive Shukla was dealing with a batch of writ petitions involving seizure of the goods by customs authorities and held: “In such a situation, when the goods...

Amendment Allowing Customs Duty Exemption For Machinery Installed In Premises Applies Retrospectively: Gujarat High Court

The Gujarat High Court has held that an amendment to a customs exemption notification under the Export Promotion Capital Goods (EPCG) scheme, which allowed installation of imported machinery in the importer's “factory or premises," will apply retrospectively, and exemption cannot be denied merely because the machinery was installed outside the factory. Allowing an importer's appeal, a Division Bench of Justice A.S. Supehia and Justice Pranav Trivedi observed that the benefit earlier denied due...

Delhi High Court Declines To Quash Customs SCN, Says Limitation Plea To Be Examined By Adjudicating Authority

The Delhi High Court has recently declined to exercise its writ jurisdiction to quash a show cause notice issued under the Customs Act, 1962, holding that the petitioner's plea regarding limitation must be decided by the adjudicating authority.A division bench of Justices Nitin Wasudeo Sambre and Ajay Digpaul observed,“Once the petitioner has submitted his explanation on the issue of limitation based on the judgments referred above, it can be expected of the respondents to deal with the...

CESTAT Sets Aside ₹82 Crore Customs Duty Demand On Dell, Says SEZ-To-DTA Laptop Sales Not 'Personal Imports'

The Chennai bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has set aside a customs duty demand of over Rs 82 crore against Dell International Services India Pvt. Ltd., holding that laptops, desktops, and monitors cleared from its SEZ unit to customers in the Domestic Tariff Area (DTA) cannot be treated as “dutiable goods” or “personal imports” under the Customs Tariff Act.The bench, consisting of Judicial Member P. Dinesha and Technical Member Vasa Seshagiri...

Delhi High Court Upholds CESTAT Order Restoring Customs Broker License, Faults Vague Show Cause Notice

The Delhi High Court has upheld a CESTAT order restoring an entity's customs broker licence, holding that action based on a vague show cause notice cannot be sustained in law.A division bench of Justices Nitin Wasudeo Sambre and Ajay Digpaul dismissed an appeal filed by the Commissioner of Customs challenging the CESTAT order which had set aside the revocation of the respondent's Customs Broker licence.The dispute arose from an order dated February 14, 2024 by which the customs authorities had...

Chennai CESTAT Allows Duty Exemption For JSW Steel, Rules Belated Reports Cannot Override Notice

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 10 March held that customs authorities cannot deny exemption by relying on test reports that were not part of the Show Cause Notice, and that adjudication cannot travel beyond the allegations contained in the notice. A Bench of Judicial Member P. Dinesha and Technical Member Vasa Seshagiri Rao set aside the demand raised against JSW Steel Ltd., holding that the imported coal satisfied the exemption...

Gujarat High Court Upholds DRI Seizure Of Imported Industrial Oil, Says Product Most Akin To Restricted Diesel Fuel

The Gujarat High Court has upheld the seizure of imported consignments declared as “industrial oil," holding that the product was most akin to Automotive Diesel Fuel (ADF) / High Flash High Speed Diesel (HFHSD), which are restricted commodities importable only through State Trading Enterprises under the import policy.The Division Bench comprising Justice A. S. Supehia and Justice Pranav Trivedi dismissed multiple writ petitions filed by importers, including Deep International (petitioner),...

Bill Of Entry Amendment After Search Permissible Under Customs Act: Rajasthan High Court Upholds Relief To Ceramic Tableware

The Rajasthan High Court has recently observed that amendments in the Bill of Entry can be made even after a search is conducted, and such amendments cannot be refused merely because the error was detected by the department and not disclosed suo motu by the importer. A division bench of Acting Chief Justice Sanjeev Prakash Sharma and Justice Sangeeta Sharma said that the purpose of Section 149 of the Customs Act, 1962 is to ensure proper assessment and that the power to allow amendment must be...

Import of Cosmetics Without CDSCO Licence Constitutes 'Prohibited Goods': Bombay High Court

On 9 March, the Bombay High Court held that cosmetic products imported without the mandatory licence under the Drugs and Cosmetics Act qualify as “prohibited goods” under the Customs Act and refused to permit their re-export, upholding the seizure action taken by customs authorities. A Division Bench of Justice G.S. Kulkarni and Justice Aarti Sathe dismissed a writ petition filed by Glamstone Cosmetics Pvt. Ltd., which had challenged the seizure of three consignments of cosmetics imported from...

Minimum Import Price Not Applicable To Domestic Tariff Clearances By 100% EOUs: CESTAT Ahmedabad

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 3 March held that the Minimum Import Price (MIP) set by the Directorate General of Foreign Trade (DGFT) cannot be used to increase the assessable value of goods cleared by a 100% Export Oriented Unit (EOU) to the Domestic Tariff Area (DTA) unless there is evidence of undervaluation.The Bench, comprising Judicial Member Somesh Arora and Technical Member Satendra Vikram Singh, partly allowed Exotic Granite...