CESTAT Hyderabad Upholds ₹20 Lakh Penalty On Hong Kong Firm Director, Rejects Extra-Territoriality Defence

The Hyderabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 15 May upheld a penalty of Rs. 20 lakh imposed on Ashok Kharey, director of Hong Kong based Maxx Access Ltd., holding that foreign nationals can be penalised under the Customs Act where their conduct has a direct nexus with customs fraud and duty evasion in India. Technical Member A.K. Jyotishi and Judicial Member Angad Prasad dismissed Kharey's appeal, observing: "Once manipulated invoices were knowingly...

CESTAT Ahmedabad Remands Customs Dispute Over Imported Goods' Classification As Thinner Or Solvent

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Ahmedabad, has remanded a customs classification dispute involving imported petrochemical products. It found that the available laboratory reports did not conclusively establish whether the goods were general-purpose paint thinners or restricted petroleum hydrocarbon solvents. A bench of Judicial Member Dr. Ajaya Krishna Vishvesha and Technical Member Satendra Vikram Singh held that fresh testing was necessary. The bench...

CESTAT New Delhi Sets Aside ₹25 Lakh Customs Demand Against Vanesa Cosmetics In Classification Dispute

The New Delhi Principal Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 18 May set aside customs duty demands exceeding Rs. 25 lakh against Vanesa Cosmetics Pvt. Ltd. holding that customs authorities cannot invoke the extended limitation period under the Customs Act merely because they disagree with the tariff classification adopted by the importer. President Justice Dilip Gupta and Technical Member P. Anjani Kumar allowed the company's appeal against an order passed...

CESTAT Mumbai Upholds Interest On Delayed Refund Of ₹21.17 Crore Extra Duty Deposit To JSW Steel

The Mumbai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that Customs cannot deny interest on the delayed refund of ₹21.17 crore paid as Extra Duty Deposit merely because Bills of Entry remained pending finalisation on unrelated issues.The tribunal observed that “under no circumstances can the respondents be made liable for the delay on the part of the Department, which fact has also been taken cognizance in the impugned order by the learned Commissioner...

CESTAT Hyderabad Sets Aside Reclassification Of Jasmine Biotechnologies' Bio-Fertiliser Imports As Insecticides

The Hyderabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has recently set aside the reclassification of imports made by Jasmine Biotechnologies from bio-fertilisers to insecticides. It held that the Customs Department failed to establish through cogent, reliable and legally admissible evidence that the products were insecticides or prohibited imports. The Division Bench comprising Judicial Member Angad Prasad and Technical Member A.K. Jyotishi passed the order...

CESTAT Kolkata Sets Aside Confiscation Of Genuine Shoe Imports Found With Counterfeit PUMA, Converse Goods

The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has set aside Customs' confiscation of All Sky Marketing Pvt Ltd's All Sky, D&B and Eleprint branded shoe consignments. It held that the confiscation of those goods could not be sustained, noting that they were separately packed, were not used to conceal the infringing goods, and that the adjudicating authority had given no reasons for confiscating them. A coram comprising Judicial Member R. Muralidhar...

Supreme Court Seeks Union's Stand On Customs' Power To Question AIFTA Benefit Claims Despite Valid Origin Certificates

The Supreme Court on Monday sought the Union Government's stand in a dispute where importers have challenged customs authorities' jurisdiction to question preferential duty claims under the ASEAN-India Free Trade Agreement (AIFTA) despite valid Certificates of Origin issued by the exporting country. The Court also directed that no final adjudication order be passed in the matter for now. A Bench of Justices K.V. Viswanathan and Manmohan was hearing special leave petitions filed by importers,...

Delhi High Court Sets Aside 'Rubber-Stamped' PRC Orders Rejecting Exporter's Duty Relief Claim

The Delhi High Court has set aside three Policy Relaxation Committee orders rejecting O.C. Sweaters LLP's request to count two export shipments under the Advance Authorisation Scheme. The court held that the authorities mechanically rejected the case without meaningfully considering the exporter's contention that a technical glitch prevented it from availing the scheme benefit. “the orders passed by the concerned authorities are merely mechanical in nature and amount to rubber-stamping,...

CESTAT Delhi Rejects Customs Case Against PU Leather Importers Over Unsealed Laptop Evidence

The Principal Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi has set aside customs duty demands and penalties imposed on multiple importers of PU leather fabric. It held that electronic records retrieved from an unsealed laptop kept in investigators' custody could not be relied upon, as the department had failed to follow the legal procedure required to authenticate electronic evidence under the Customs Act (Section 138C). A bench of President Justice...

Mumbai CESTAT Quashes Customs Demands On SOL Mobiles, Says Phone Activation Is “Configuration”, Not “Use”

On 12 May, the Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) set aside the customs demands and penalties on SOL Mobiles Private Limited and its Vice-President (Finance & Accounts) Manjit Jha, holding that unlocking and activating mobile phones before export amounted only to “configuration” and not “use” under the Customs and Central Excise Duties Drawback Rules. Judicial Member S.K. Mohanty and Technical Member M.M. Parthiban held that the customs...

CESTAT Mumbai Quashes Recovery Against Hindustan Copper Over 23-Year Delay and No Show Cause Notice

The Mumbai Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) on 7 May set aside recovery proceedings against Hindustan Copper Ltd., holding that adjudication conducted nearly 23 years after the demand notice was issued was legally unsustainable and violated principles of natural justice. Judicial Member Ajay Sharma, allowed the appeal and set aside the Order-in-Appeal passed by the Commissioner of Customs (Appeals), Mumbai. The Tribunal held: “The department's...

CESTAT Bangalore Holds Chocolate Flavour Not A Cocoa Preparation, Quashes Customs Duty Demand

The Bangalore Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 5 May held that the chocolate flavouring substances meant to be added to food cannot be classified as “chocolate and other food preparations containing cocoa” under Customs Tariff Heading 18069090. Judicial Member Justice P.A. Augustian and Technical Member Pullela Nageswara Rao set aside the customs duty demand, interest, and penalties against Prova Flavours India Pvt Ltd and allowed its appeal against an...