CUSTOMS
Madras High Court Permits Mother, Minor Daughter To Seek Return Of Gold Jewellery Detained At Trichy Airport
The Madurai Bench of the Madras High Court has allowed a mother and her minor daughter to approach the Customs authorities for the return of gold jewellery detained at Trichy Airport.The Court directed them to submit an application before the Customs authorities seeking return of the jewellery.Justice C. Saravanan passed the order while disposing of petitions filed by the mother and daughter challenging the detention of gold jewellery weighing 22.20 grams and 30.50 grams, valued at ₹2.89...
Disposable Cuvettes Can Be Classified As Parts Of Diagnostic Equipment: CESTAT Chennai
The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that specially designed micro-cuvettes used with Roche Diagnostics India's Cobas c111 analyser are classifiable as parts of the diagnostic equipment. It ruled that the cuvettes' disposable nature did not by itself prevent such classification.A Bench of Judicial Member P. Dinesha and Technical Member M. Ajit Kumar held that the “Integra Microcuvetten, Micro Cuvette Segment” was not merely a plastic...
Thermic Fluid Used For Initial Filling Of Manufacturing Plant Qualifies As 'Capital Goods': CESTAT Mumbai
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai has held that thermic fluid used to initially charge and operate a Continuous Polycondensation (CP) plant qualifies as “capital goods” for customs duty exemption.“In view of the above discussion and analysis of the statutory provisions under FTP and the notification dated 14.09.2009 regarding the scope and coverage of 'capital goods', and the nature of thermic fluids viz., 'Dowtherm RP Heat Transfer Fluid' / 'Dowtherm A Heat...
NVOCC Cannot Charge Demurrage On Customs-Seized Goods Despite 60-Day SCMTR Rule: CESTAT Mumbai
On 24 September, the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai held that a Non-Vessel Operating Common Carrier (NVOCC) acting as a Customs Cargo Service Provider (CCSP) cannot charge rent or demurrage on goods seized or detained by Customs, even if the Sea Cargo Manifest and Transhipment Regulations, 2018 (SCMTR) permit recovery of detention charges after 60 days in specified circumstances. A Bench comprising Judicial Member Ajay Sharma and Technical Member M.M....
Madras High Court Quashes ₹20 Lakh Penalty On Customs Broker, Finds No Proof Of Collusion
The Madras High Court on 17 September set aside the Rs. 20 lakh penalty imposed on Newport Shipping and Logistics, holding that the material relied upon by the Customs authorities did not establish the broker's knowledge, conscious involvement or collusion in the attempted export of prohibited bull/ox meat. Justice Hemant Chandangoudar observed that a Customs Broker cannot be held liable for abetment of the attempted export of prohibited goods merely on the basis of routine activities such as...
Customs Can Recover Differential Duty Without Challenging Importer's Self-Assessment: CESTAT Ahmedabad
The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 23 September held that the Customs Department can demand differential duty under Section 28 of the Customs Act without first challenging an importer's self-assessment. A Bench comprising Judicial Member Dr. Ajaya Krishna Vishvesha and Technical Member Satendra Vikram Singh partly allowed an appeal filed by Famous Steel, observing that anti-dumping duty is a customs duty on which IGST is payable, while...
CESTAT Chennai Sets Aside ₹23.17 Crore Demand Against Toyota, Rejects Reclassification Of 226 Parts
On 23 September, the Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) set aside a Rs. 23.17 crore customs duty demand against Toyota Kirloskar Motor Pvt. Ltd. over the classification of 226 imported motor vehicle parts. It also held that the extended limitation period was unavailable and set aside the confiscation, Rs. 17 crore redemption fine and penalty imposed on the company.A Bench comprising Technical Member Vasa Seshagiri Rao and Judicial Member Ajayan T.V....
Genuine Exporters Should Not Face 'Needless Litigation' Over Inadvertent Procedural Lapses: Calcutta High Court
The Calcutta High Court has directed the Directorate General of Foreign Trade (DGFT) to take measures to ensure that genuine exporters are not driven to “needless litigation” over inadvertent procedural lapses that can be rectified in accordance with law.“The DGFT authorities must take appropriate measures, whether by issuing comprehensive instructions or by suitable technological adjustments, to ensure that genuine exporters are not driven to needless litigation on account of inadvertent...
Used Rails Unfit For Reuse Classifiable As Ferrous Scrap, Not Railway Material For Customs Duty: CESTAT Chennai
The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Chennai has held that the classification of used railway rails depends on their condition and usability at the time of import, rather than simply on their original identity as railway rails.Where imported material was extensively rusted, cut, damaged and no longer fit for use as railway material, it was classifiable under Heading 7204 as ferrous waste and scrap, the tribunal ruled. Heading 7302 covers railway or tramway track...
CESTAT Mumbai Sets Aside ₹6.01 Crore Duty Demand Against Navayuga Engineering Over Helicopter Parts
On 22 September, the Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) set aside a Rs. 6.01 crore customs duty demand against Navayuga Engineering Company Limited, holding that helicopter parts used to transport personnel for infrastructure projects qualified as “capital goods” eligible for customs duty exemption. A Bench comprising Judicial Member Ajay Sharma and Technical Member M.M. Parthiban also held that Navayuga and Krishnapatnam Port Company Limited (KPCL)...
CESTAT Chennai Quashes Royalty Addition To CET Power Solutions' Import Value, Says Sale Nexus Needed
On 22 September, the Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) set aside the order adding royalty paid by CET Power Solutions India Pvt. Ltd. to its foreign collaborator to the assessable value of imported goods.A Bench comprising Technical Member Vasa Seshagiri Rao and Judicial Member Ajayan T.V. held that royalty paid to a foreign collaborator cannot be added to the assessable value of imported goods merely because the imported components are used to...
Brake Hose Bracket Is Motor Vehicle Part, Cannot Be Classified As Metal Bracket For Customs Duty: CESTAT Delhi
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Delhi, has held that a bracket used in brake hose assemblies should be classified as a motor vehicle part based on its principal use for customs duty purposes.It also held that a connector specifically designed for automobile brake systems could not be classified as a generic plumbing fitting.A Bench comprising Officiating President Dr. Rachna Gupta and Technical Member Hemambika R. Priya dismissed the appeal filed by Nichirin...