Payments Made During Investigation Without SCN Do Not Constitute Payments Against Demand: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the payment made by the assessee during an investigation, without any Show Cause Notice, cannot be considered as payment against a demand raised by the Department without even going into the merits of the nature of demand. The Bench of Dr. Rachna Gupta (Judicial Member) has observed that “any amount received during investigation is Revenue Deposit hence cannot be retained for want of...

No Evidence Of Over-Valuation Of Goods; Transaction Value Wrongly Rejected Under Rule 8 of Customs Valuation Rules: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that there is no evidence of over-valuation of Goods and the transaction value has been wrongly rejected under Rule 8 of Customs Valuation Rules. Section 113 of the Customs Act, 1952 provides the list of goods that are liable to be confiscation if they are attempted to be improperly exported. Section 113 (a) of the Customs Act, 1952 provides that the goods are liable for confiscation if...

EPS-ECU Meant Solely For Use In Automobiles With Power Steering: CESTAT Delhi Classifies Same Under CTI 8708 94 00

While finding that the EPS-ECU is meant solely for use in automobiles with power steering, the CESTAT New Delhi held that EPS-ECU, which is essentially a part of an automobile specifically designed to be a part of power steering and which has no other function, cannot be classified in the general residual entry of electrical machines and equipment. Hence, the CESTAT classified the EPS-ECU and its sub-assembly under CTI 8708 94 00. The Tribunal held so while deciding about the...

Attempt To Export SCOMET Item Without Authorization Is Serious Violation; CESTAT Upholds Penalty Against Customs Broker

The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that an attempt to export specialized chemicals, organisms, machinery, equipment, and technology (SCOMET) items without the required authorization is a serious violation.The bench of Justice Dilip Gupta (President) and P. V. Subba Rao (Technical Member) has observed that there is no evidence of the appellant/customs broker profiting from the attempted export of triethanolamine. Action has been taken against...

Samsung India Entitled To Customs Duty Exemption On Imported IC-Codecs: CESTAT

The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that Samsung India is entitled to customs duty exemption on imported IC-Codecs.The bench of Justice Dilip Gupta (President) and P. V. Subba Rao (Technical Member) has observed that HSN Explanatory Notes to CTH 8542 provide that monolithic ICs may be in the form of un-diced wafers. The IC-Codecs, as imported by the appellant, are in the form of rolls, i.e., un-diced wafers. It, therefore, clearly follows that...

Hybrid/Pure Matrix Cards For PTN Equipment Classifiable Under CTI 8517 70 10: CESTAT Quashes Customs Duty Against Vodafone Idea

The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that Hybrid/Pure Matrix Cards for PTN Equipment would be classifiable under CTI 8517 70 10 as “parts of goods, and Small Form Factor Pluggable for Packet Transport Network (PTN) Equipment would be classifiable under CTI 8517 70 90.The bench of Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) has observed that NIC is effectively a translator, which allows a computer to communicate with a...

Customs Brokers Not Liable Once Verification Of Address Is Completed: Delhi CESTAT

The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the responsibility of the customs broker under Regulation 10(n) does not include keeping continuous surveillance on the client to ensure that he continues to operate from that address and has not changed his operations. The bench of Rachna Gupta (Judicial Member) and P. V. Subba Rao (Technical Member) observed that once verification of the address is completed by a Customs Broker, if the client moves to...

Dept. Can't Challenge Customs Duty Demand, Below Threshold Limit Prescribed By CBIC: CESTAT

The Chandigarh bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), while dismissing the department's appeal, held that the department is precluded from challenging the commissioner's order if customs duty demand is below the threshold limit prescribed by the Central Board of Indirect Taxes and Customs (CBIC).The bench of S. S. Garg (Judicial Member) and P. Anjani Kumar (Technical Member) has observed that the amount of duty involved in the appeal is below the threshold...

Responsibility Of Customs Broker Does Not Include Keeping Continuous Surveillance On Client: CESTAT

The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the responsibility of the customs broker under Regulation 10(n) of the Customs Brokers Licensing Regulations, 2018 does not include keeping continuous surveillance on the client.The bench of Dilip Gupta (President) and P.V. Subba Rao (Technical Member) has observed that the responsibility of the customs broker under Regulation 10(n) does not include keeping continuous surveillance on the client to...

Aircraft Used Only For Providing Non-Scheduled Passenger Services Entitled For Customs Exemption: CESTAT

The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the aircraft used only for providing non-scheduled passenger services is entitled to customs exemption.The bench of Binu Tamta (Judicial Member) and P. V. Subba Rao (Technical Member) has observed that the conditions of exemption notification were not complied with as the appellant therein had not used the aircraft for rendering any 'Air Transport Service' within the meaning of Rule 3(9) of the Aircraft...

Royalty Not Includible In Transaction Value Of Imported Raw Materials To Demand Any Differential Customs Duty: CESTAT

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the royalty is not included in the transaction value of the imported raw materials to demand any differential customs duty.The bench of Sulekha Beevi C.S. (Judicial Member) and Vasa Seshagiri Rao (Technical Member) has observed that the royalty payment is only for providing technical assistance for the manufacture and sale of licensed products, and the import of raw materials is incidental to such...

Customs Duty Amount Involved Is Less Than Threshold Limit: CESTAT Dismissed Dept.'s Appeal

The Chandigarh Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has dismissed the dept.'s appeal, in which the customs duty amount involved is less than Rs. 50 lakhs.The bench of S. S. Garg (Judicial Member) and P. Anjani Kumar (Technical Member) has observed that the appeals do fall within the instructions as prescribed in the circular dated November 2, 2023. The CESTAT, the High Courts, and the Supreme Court have been consistently dismissing the appeals of the Revenue if they are...