Delhi HC Refuses To Order Third Re-Test Of Shawls For Export, Says Decision Lies With Adjudicating Authority

The Delhi High Court has recently declined to direct a third re-test of goods under Customs proceedings, holding that such a request cannot be insisted upon at the mere instance of a party and that the decision lies within the discretion of the adjudicating authority, particularly where two test reports are already on record.A bench of Justices Nitin Wasudeo Sambre and Ajay Digpaul dismissed a writ petition filed by an exporter seeking the quashing of a show cause notice and a direction for...

Delhi HC Dismisses Plea Against Customs Order, Says Non-Communication Of Adjudication Time Extension Not Fatal

The Delhi High Court on Tuesday dismissed writ petitions challenging adjudication proceedings under the Customs Act, holding that non-communication of an order extending time for adjudication does not, by itself, vitiate the proceedings.A bench of Justices Nitin Wasudeo Sambre and Ajay Digpaul relied on Pranij Heights India Pvt. Ltd. v. The Joint Commissioner of Customs where it was held that although as a matter of prudence the Customs Department ought to intimate the grant of extension to the...

Supreme Court Sets Aside HC Direction Making Customs Dept. Liable For Demurrage In Austin Engineering Dispute

The Supreme Court has recently set aside a Madras High Court ruling that had required the Customs Department to bear demurrage charges in a dispute with Austin Engineering Co. Ltd. These charges are levied by port authorities when imported goods remain in storage beyond the permitted period.The court made it clear that such liability cannot be placed on customs unless there is clear evidence of mala fides or a gross abuse of power. A bench of Justice Aravind Kumar and Justice Prasanna B. Varale...

CESTAT Kolkata Sets Aside IGST Demand On Tea Pruning Machine Importer, Faults Dept. For Classification Lapse

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Kolkata, has set aside an IGST demand raised on an importer functioning under Tea Spares (India) over an alleged short payment of tax on imports of tea plucking and pruning machines.It held that the department could not apply a higher rate under a residual entry without first disputing the classification opted for by the taxpayer. The tribunal observed that “the adjudicating authority has appropriately questioned the...

CESTAT Mumbai Sets Aside ₹1.19 Crore Customs Duty Demand Against Sonova Over Hearing Aid Charging Cases

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has recently set aside a customs duty demand of about Rs 1.19 crore against Sonova Hearing India Pvt. Ltd. The order also wipes out the interest liability, an equal penalty, and a redemption fine of Rs 1 crore that had been imposed in the classification dispute over imported charging cases used with hearing aids. A bench of Judicial Member Dr. Suvendu Kumar Pati, and Technical Member M.M. Parthiban held that the product described...

GOQii Fitness Bands Not Pedometers But Data Communication Devices: CESTAT Mumbai Partly Allows Revenue Appeal

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai has ruled that GOQii activity trackers and fitness bands are not just simple pedometers, but devices with a range of features including the ability to communicate data. The tribunal partly allowed the Revenue's appeal against GOQii Technologies Pvt. LtdThe order was passed by a bench of Judicial Member Dr. Suvendu Kumar Pati and Technical Member M.M. Parthiban while deciding a dispute over how these imported devices should...

Supreme Court Stays ₹14.91 Crore Customs Duty Recovery Against HP India, Issues Notice

The Supreme Court has stayed recovery pursuant to a Rs.14.91 crore customs demand against HP India Sales Pvt. Ltd. and issued notice in its appeal against a November 4, 2025 order of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT).HP India's appeal challenges the CESTAT Mumbai order, which upheld the classification of its imported “HP Latex printers” as inkjet printing machines instead of inkjet printers, leading to the duty demand along with interest and penalty under the...

Delhi High Court Grants Importers Interest On Customs Duty Refunds After Delay In Re-Assessment By Department

The Delhi High Court has recently held that importers are entitled to interest on refunds of excess customs duty in cases where prolonged delay in reassessment is attributable to the Department. A Division Bench of Justice Prathiba M. Singh and Justice Shail Jain observed, "For the delay in Department's passing of the re-assessment orders, the Petitioners cannot be blamed or expected to unduly suffer. Accordingly, the Court is of the view that in the said four writ petitions, the interest...

Bombay HC Quashes SCNs Against Foreign Exporter, Says Customs Act Had No Extra-Territorial Reach Pre-2018

The Bombay High Court has quashed show cause notices issued by customs authorities against a German textile machinery manufacturer and its Indian subsidiary, holding that the notices were without jurisdiction and that a foreign exporter cannot be made liable for alleged misdeclaration by Indian importers for a period prior to the 2018 amendment to the Customs Act. A Bench of Justice G. S. Kulkarni and Justice Aarti Sathe held that proceedings initiated against a foreign entity situated outside...

CESTAT New Delhi Allows Refund Of Service Tax On Cancelled Project, Rejects Limitation Bar

The New Delhi Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) on 8 April held that authorities cannot deny refund of service tax paid on advances received for construction services on the ground of limitation, where the project is subsequently cancelled and the amounts are returned to customers. A Bench comprising Judicial Member Binu Tamta and Technical Member P.V. Subba Rao allowed the appeal filed by Reach Promoters Pvt. Ltd. and remanded the matter, holding that...

CESTAT Delhi Denies Nikon ₹7.32 Crore Refund, Holds Claim Pre-Exemption Decision Is Not Maintainable

The New Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi on 6 April, held that a refund claim filed before final adjudication of the underlying exemption dispute is not maintainable, even where duty has been paid under protest. A Bench comprising President Justice Dilip Gupta and Technical Member P.V. Subba Rao dismissed the appeal filed by Nikon India Private Limited and upheld rejection of its refund claim. The Tribunal held: “The facts of the...

Department Cannot Allege Excess Imports Without Explaining IGCR Clearance Irregularly: CESTAT New Delhi

On 10 April, the New Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that where imported goods are cleared under the IGCR procedure, the Department cannot allege excess imports without explaining how customs officers permitted such clearance. A Bench of President Justice Dilip Gupta and Technical Member P.V. Subba Rao set aside a customs duty demand of Rs. 31.40 lakh against K.A. Enterprises. They observed: “In the absence of any recording as to which of...