CESTAT Delhi Sets Aside Penalty Against Company As No Proof It Knew Goods Were Liable To Confiscation

The Principal Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi has set aside a Rs.10 lakh penalty imposed on Rathi Iron & Steel Ind. Ltd., finding no material to show that the company had dealt with goods allegedly removed without payment of duty or had knowledge or belief that they were liable to confiscation. A bench of President Justice Dilip Gupta and Technical Member P. Anjani Kumar held,“The appellant had not dealt with the goods that may be liable...

Importer Cannot Contest Customs Reassessment After Accepting Enhanced Value: CESTAT Delhi

The Principal Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi, has dismissed an importer's challenge to enhancement of customs value after finding that it had accepted the revised valuation, paid duty, and cleared the goods without protest. A bench of President Justice Dilip Gupta and Technical Member P.V. Subba Rao distinguished the Delhi High Court's ruling in Niraj Silk Mills, where the importer had consistently protested the reassessment and sought...

CESTAT Delhi Holds GE Vernova's Imported Products Are Relays, Not Multifunctional Devices

The Principal Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi has held that four imported products of GE Vernova T&D India Ltd., including relay products with additional monitoring, data logging and alarm features, remain classifiable as “relays.” The tribunal held that their principal function continues to be protection and control of electrical systems. A bench of President Justice Dilip Gupta and Technical Member P.V. Subba Rao partly allowed...

CESTAT Ahmedabad Sets Aside CVD Demand On Imports Made Under Advance Authorisation During Transitional Period

The Ahmedabad Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) has allowed appeals filed by Ratnaveer Stainless Products Pvt. Ltd., its director and a customs broker. The dispute concerned Countervailing Duty (CVD) liability on imports made under Advance Authorisation between September 7, 2017 and October 12, 2017. A bench of Judicial Member Dr. Ajaya Krishna Vishvesha and Technical Member Satendra Vikram Singh passed the order. Holding that the issue was “no more...

'Orchestrated Attempt' To Misuse Gold Export Promotion Scheme: CESTAT Chennai Upholds Customs Act Penalties

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 8 May upheld penalties against exporters, customs brokers and a customs officer in a case involving the alleged export of gold-plated copper jewellery as “22 carat gold jewellery” to fraudulently divert duty-free imported gold under an export promotion scheme. Judicial Member P. Dinesha and Technical Member Vasa Seshagiri Rao noted that the customs broker and its personnel facilitated examination of...

CESTAT Allahabad Holds Department Must Prove RMC Manufacture Before Levying Excise Duty On Concrete Mix

The Allahabad Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) on 14 May held that concrete mix manufactured and consumed at construction sites for residential projects qualifies for exemption from central excise duty and cannot be classified as “Ready Mix Concrete” (RMC) without technical evidence establishing the characteristics of RMC manufacturing. Judicial Member P.K. Choudhary and Technical Member Rajeev Tandon held that the Department failed to prove that...

Container Freight Station Cannot Operate Without Customs Supervision: Calcutta High Court

On 15 May, the Calcutta High Court upheld cost recovery charges imposed on a Container Freight Station at Haldia and rejected a challenge to demand notices issued by Customs authorities, holding that such facilities cannot function outside the framework of statutory supervision and regulatory control. The Bench of Justice Rai Chattopadhyay dismissed the plea filed by Apeejay Infra Logistics Pvt. Ltd. and observed that a Container Freight Station cannot function without supervision, examination,...

Supreme Court Refuses To Interfere With Relief To RSRTC In ₹16 Crore Service Tax Dispute

The Supreme Court has refused to interfere with a tribunal ruling that granted major relief to Rajasthan State Road Transport Corporation (RSRTC) in a long-running service tax dispute involving demands exceeding ₹16 crore over allegations that it operated as a “tour operator” and failed to pay tax on certain other services. A bench of Justice Dipankar Datta and Justice Satish Chandra Sharma dismissed an appeal filed by the Principal Commissioner of CGST and Central Excise, Jaipur, against a...

Mere Concealment Of Gold Not Enough To Prove Customs Duty Evasion: Delhi High Court

The Delhi High Court has upheld the acquittal of a man accused of smuggling gold into India, holding that mere concealment of gold was insufficient to establish fraudulent evasion of customs duty when the passenger was intercepted before he could proceed through customs clearance.Justice Neena Bansal Krishna dismissed an appeal filed by the Union of India challenging the acquittal of a Mumbai-based passenger who was found carrying 30 gold biscuits weighing 3496.400 grams concealed in a waist...

Licence Fee, Technical Assistance Charges Not Part Of Customs Value Unless Condition Of Sale: CESTAT Delhi

The Principal Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi has held that licence fees, engineering package charges, and technical assistance payments cannot be added to the assessable value of imported equipment where they are separately contracted and are not a condition of sale. A bench of Judicial Member Binu Tamta and Technical Member P.V. Subba Rao observed, “Law has been settled that once separate prices are provided for the supply of technical...

CESTAT Delhi Holds Glucometers Are Instruments For Chemical Analysis, Not Medical Diagnostic Devices

The Principal Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi, has allowed Aspen Diagnostics Pvt. Ltd.'s appeal against the customs department's attempt to reclassify its imported diagnostic devices, including glucometers, from instruments for chemical analysis to medical diagnostic instruments. The tribunal set aside the differential duty demand and penalties. A bench of Judicial Member Ashok Jindal and Technical Member K. Anpazhakan held that the issue...

CESTAT New Delhi Quashes Duty Demand On Ismartu India, Holds CKD/SKD Reclassification Not Established

The New Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 18 May set aside the customs duty demand, confiscation order and penalty imposed on Ismartu India Pvt. Ltd., holding that the Department failed to establish that the imported goods were complete mobile phones in CKD/SKD condition. President Justice Dilip Gupta and Technical Member P. Anjani Kumar reiterated that imported goods can be reclassified as finished articles under Rule 2(a) of the General Rules...