CUSTOMS
Raw Aluminium Cannot Be Reclassified As 'Motor Vehicle Parts' Based On End Use Alone: CESTAT Delhi
The Delhi Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) recently set aside the re-classification of raw aluminium articles imported from Korea and Thailand as auto-parts solely on the basis of end use. On 21 January 2026, a Bench of Justice Dilip Gupta and Technical Member Hemambika R. Priya rejected the Department's attempt to classify imported aluminium tubes, pipes, and profiles as 'parts of motor vehicles'. The Tribunal held that merely because the imported...
Johnson Lifts Secures ₹1.24 Crore Relief As CESTAT Chennai Upholds Elevator Parts Classification
The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that lift and elevator parts imported by Johnson Lifts Pvt. Ltd. were correctly classifiable as “parts suitable for use solely or principally with lifts and escalators” under Customs Tariff Heading (CTH) 8431, which attracts a lower rate of customs duty. A Bench comprising Judicial Member Ajayan T.V. and Technical Member Ajit Kumar set aside the department's differential customs duty demand exceeding...
CBIC Revises Gold Tariff Values, No Change in Edible Oils, Brass Scrap & Areca Nuts
In a notification dated 22 January 2026, the Central Board of Indirect Taxes and Customs (CBIC) has updated tariff values for gold while keeping tariff values unchanged for edible oils, all types of brass scrap, silver, and areca nuts. The notifications stated that from 23 January 2026 tariff rates are effective at USD 1,567 per 10 g for gold and USD 2,950 per kg for silver. The notification also specifies tariff values for various edible oils, brass scrap, gold, silver, and areca nuts. These...
CESTAT Restores Custom Broker's Licence After Finding Revocation Based On Statements Not Admitted As Evidence
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) at New Delhi has set aside the revocation of a customs broker licence granted to Global Links. The tribunal held that, on the facts of the case, the action could not be sustained, as it was based only on statements that were never admitted as evidence. A coram comprising President Justice Dilip Gupta and Technical Member P. V. Subba Rao found that the adjudicating authority relied on statements recorded during the investigation...
CBIC Grants One-Time Relief To Cross Recessed Screws From 2025 Quality Control Order
The Central Board of Indirect Taxes and Customs (CBIC) has notified a one-time exemption for cross recessed screws from compliance under the Cross Recessed Screws (Quality Control) Order, 2025 (QCO). In an Instruction dated 17 January 2026, CBIC clarified that import consignments of cross recessed screws with inward entry dates between 1 November 2025 and 12 January 2026 would be exempt from QCO compliance. The exemption follows representations from industry stakeholders seeking relief from...
Unlawful Customs Levy Cannot Be Revived Through Executive Notifications: Supreme Court In Adani Power SEZ Case
The top court granted relief to Adani Power by overturning the Gujarat High Court's 2019 refusal to order refunds of customs duty on electricity supplied by its SEZ unit to the domestic tariff area.
No Countervailing Duty On Silk Fabrics Imported In 2012–13: CESTAT Chennai
The Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) clarified that countervailing duty (CVD) cannot be levied on imported silk fabrics during 2012–2013, when excise duty on such fabrics was fully exempt under the relevant notification. Further that customs proceedings are deemed concluded once duty and interest are paid before a show-cause notice is issued. A Bench comprising Judicial Member P. Dinesha and Technical Member Vasa Seshagiri Rao set aside the...
Parts Used For Intelligent Manual Transmission Not Clutch Parts, CESTAT Rules In Hyundai Transys' Favour
The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that auto parts imported by Hyundai Transys India Private Limited for use in intelligent manual transmission vehicles were wrongly classified by customs authorities, leading to unsustainable duty demands. A bench of Judicial Member P. Dinesha and Technical Member Vasa Seshagiri Rao ruled that the actuator assembly and tube connector assembly used in iMT vehicles cannot be treated as “clutches and parts...
Orissa High Court Rejects Customs Plea to Prefer CRCL Reports Over Private Lab Reports In Essel Mining Case
The Orissa High Court has rejected the customs department's argument that test reports issued by the Central Revenues Control Laboratory should be given primacy over load-port test reports issued by a NABL-accredited private laboratory and dismissed a revenue appeal against Essel Mining and Industries Ltd. in an iron ore export duty dispute. A Division Bench of Chief Justice Harish Tandon and Justice Murahari Sri Raman declined to interfere with a December 4, 2024 order of the Customs, Excise,...
CESTAT Mumbai Sets Aside Service Tax Demand Based Only On Service Tax–Income Tax Return Mismatch
The Mumbai bench of the Customs, Excise, and Service Tax Appellate Tribunal has set aside a service tax demand that was raised on the basis of a mismatch between income tax returns and ST-3 returns (half-yearly service tax returns filed under the pre-GST regime). The tribunal noted that the demand was confirmed without proper service of notice and without giving the taxpayer an opportunity of hearing The appeal was decided by Technical Member M.M. Parthiban. The tribunal found that the...
CBIC Revises Tariff Values For Gold, Silver, Edible Oils And Brass Scrap
The Central Board of Indirect Taxes and Customs (CBIC) has updated tariff values for edible oils, brass scrap, gold, silver and areca nuts. By a notification issued on 15 January 2026, the CBIC notified revised tariff values effective from 16 January 2026, fixing the tariff value of gold at USD 1,483 per 10 grams and silver at USD 2,950 per kilogram. The CBIC has also notified that there is no change in the tariff value of areca nuts falling under tariff item 080280. Further, revised tariff...
Chilly Seeds Imported For Sowing Cannot Be Classified As 'Spices': CESTAT
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) at New Delhi has held that chilly seeds imported exclusively for sowing cannot be treated as “spices” under the Customs Tariff and must instead be classified as seeds used for sowing under Chapter 12. A coram led by President Justice Dilip Gupta and Technical Member Hemambika R. Priya set aside a 2016 order of the Commissioner (Appeals) that had upheld a higher duty on such imports. For context, spices attract a 70% basic...