Customs Department Must Hear Account Holder Before Extending Bank Account Attachment: Patna High Court

The Patna High Court has recently ruled that a person whose bank account has been provisionally attached under the Customs Act must be given an opportunity of hearing before the attachment is extended. A hearing offered after the extension has already been ordered cannot cure the defect, the court held.A Division Bench of Justice Rajeev Ranjan Prasad and Justice Sunil Dutta Mishra made the ruling while allowing a writ petition filed by Nxtify Technologies Private Limited to the extent indicated...

CBIC Circular Cannot Override Provisional Release Of Seized Goods Under Customs Act: Allahabad High Court

The Allahabad High Court at Lucknow has held that Customs authorities cannot deny provisional release of seized goods merely because an executive instruction places such goods outside the scope of provisional release. The bench of Justice Shekhar B. Saraf and Justice Abdhesh Kumar Chaudhary held that CBIC Circular No. 35/2017-Cus. dated 16.08.2017 cannot dilute the scope of Section 110A of the Customs Act, 1962, by prohibiting provisional release of goods notified under Section 123 of the Act. ...

Even Peripheral Question On Customs Duty Rate Can Take CESTAT Appeal To Supreme Court: Bombay High Court

The Bombay High Court has held that even a peripheral question touching the rate of customs duty can fall outside the High Court's appellate jurisdiction. Such an appeal would lie directly before the Supreme Court under Section 130E of the Customs Act, 1962.A Division Bench of Justice B.P. Colabawalla and Justice Farhan P. Dubash dismissed the Revenue's appeals against a CESTAT Mumbai order in favour of J M Baxi & Co. and others. The dispute concerned duty exemption on “stores” imported for...

Gold Imported In Violation Of Restrictions Is 'Prohibited Goods' Under Customs Act: Calcutta High Court

On Thursday, 10 September, the Calcutta High Court held that gold imported into India in violation of applicable import restrictions can be treated as “prohibited goods” under Section 2(33) of the Customs Act, 1962, even though gold is not absolutely prohibited from being imported into the country. A Division Bench comprising Justices Debangsu Basak and Aryak Dutt allowed the Customs Department's appeals and dismissed the appeals filed by Gopal Saha and Ajgar Seikh, setting aside the Single...

Aircraft Flown Commercially Without DGCA Approval Cannot Claim Customs Duty Exemption: CESTAT Delhi

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi has held that an aircraft imported duty-free for non-scheduled charter services cannot retain the exemption when it is commercially operated without the DGCA approval required under the exemption.A bench comprising Officiating President Dr. Rachna Gupta and Technicla Member P.V. Subba Rao was dealing with appeals filed by Mega Corporation Ltd., its Managing Director Kunal Lalani, and CEO Anil Kumar Soni.Mega Corporation...

CESTAT Chennai Upholds Toyota's Classification Of Nine Imported Sensors, Sets Aside Reclassification

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has upheld Toyota Kirloskar Motors Pvt. Ltd.'s classification of nine imported sensors as thermistors, gas-analysis apparatus, measuring or checking instruments, motor-vehicle parts and electrical apparatus.“The goods have to be classified in the condition in which they are imported, having regard to their objective characteristics and function,” the tribunal observed. It also held that where the Revenue seeks...

Authorised Courier Not Liable For Export Of Prohibited Goods Without Proof Of Knowledge: CESTAT Chennai

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 9 September held that an authorised courier cannot be penalised merely because prohibited goods are found concealed in an export consignment, unless the Revenue establishes the courier's knowledge, participation or a specific act or omission connecting it with the attempted improper export. A Division Bench comprising Judicial Member P. Dinesha and Technical Member M. Ajit Kumar allowed an appeal filed by...

Telangana High Court Upholds Gimpex's Target Plus Duty Exemption, Says Broad Nexus Sufficient

The Telangana High Court on 11 August upheld the relief granted to Gimpex Limited, holding that the extended period of limitation could not be invoked in the absence of material showing fraud, wilful misstatement or suppression of facts with an intent to evade duty. A Division Bench comprising Justices P. Sam Koshy and Narsing Rao Nandikonda observed that a strict product-to-product nexus between imported and exported goods was not required to claim duty exemption under the Target Plus Scheme....

Delhi High Court Declines Unconditional Release Of Gold, Cites Dispute Over Oral Show-Cause Notice

The Delhi High Court has refused to direct the unconditional release of 290 grams of gold seized from a passenger at Delhi airport, holding that the absence of a written show-cause notice by itself could not warrant release when the Customs Department specifically claimed that an oral show-cause notice had been issued on the date of seizure.The Division Bench of Justices Anil Kshetarpal and Shail Jain was dealing with a petition filed by Awesh Karmi Fundreimayum seeking release of eight gold...

Customs Adjudication Limitation Clock Restarts After Interim Stay Ends: Delhi High Court

The Delhi High Court has held that where a pending court proceeding and an interim order prevent customs authorities from proceeding with adjudication, the limitation period prescribed under Section 28(9) of the Customs Act, 1962, is to be reckoned from the date on which the circumstance contemplated under Section 28(9A) ceases to exist.The Division Bench of Justices Anil Kshetarpal and Shail Jain made the observation while dismissing a petition challenging a customs adjudication order that...

Govt Can't Continue Proceedings For Statutory Dues Omitted From Approved Resolution Plan: CESTAT Chennai

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 7 September held that statutory dues owed to the Central Government, State Government or local authority, which are not included in a resolution plan approved by the National Company Law Tribunal (NCLT), stand extinguished and proceedings concerning such dues cannot be continued. A Division Bench comprising Judicial Member Ajayan T.V. and Technical Member Vasa Seshagiri Rao was dealing with a customs appeal...

Section 123 Customs Act Needs Traceable Proof Of Lawfully Acquiring Seized Goods: Allahabad High Court

The Allahabad High Court on 3 September held that an owner of seized goods does not discharge the burden under Section 123 of the Customs Act, 1962 merely by producing documents relating to his business generally, and must instead produce documents that specifically and traceably establish lawful acquisition of the seized goods. A Division Bench comprising Justices Shekhar B. Saraf and Abdhesh Kumar Chaudhary held that the burden shifted to the owner after the revenue satisfied the conditions...