CESTAT
CESTAT Kolkata Sets Aside Interest Demand On Dalmia Cement's Capital Goods Imported Under MOOWR Scheme
The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has set aside the interest demand raised against Dalmia Cement (Bharat) Ltd. on customs duty paid while clearing imported capital goods from its bonded warehouse. The tribunal held that interest could not be demanded merely because the goods were cleared for home consumption without being put to use, where they had been imported with the intention of being used in manufacturing.Relying on Supreme Court...
CESTAT Chennai Reiterates NIDB Data Alone Cannot Justify Rejection Of Declared Import Value
The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has reiterated that the National Import Database (NIDB) data alone cannot justify rejection of the declared transaction value of imported goods or enhancement of their assessable value. It held that the Customs Department must produce independent evidence of undervaluation and establish the comparability of contemporaneous imports before discarding the declared value.A coram of Judicial Member Ajayan T.V. and...
Customs Duty Exemption Available For ELISA Kits Cannot Be Claimed By Individual Components: CESTAT Delhi
The Principal Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), New Delhi, has recently held that QFT Tubes, though functionally used with ELISA kits, are not entitled to the concessional 5% Basic Customs Duty (BCD) available to ELISA kits. ELISA (Enzyme-Linked Immunosorbent Assay) is a diagnostic testing method used to detect diseases by analysing blood samples.It held that the exemption applies only to the complete diagnostic kit and not to its individual...
CESTAT New Delhi Restores India-Thailand FTA Benefit To P.C. Jeweller Citing Verification Rules
On Tuesday, 14 July, the Principal Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) at New Delhi, held that the Directorate of Revenue Intelligence (DRI) cannot deny preferential customs duty benefits under the India-Thailand Free Trade Agreement without following the prescribed procedure to verify Country of Origin (COO) Certificates with the issuing authority. A Bench of Judicial Member Ashok Jindal and Technical Member K. Anpazhakan allowed a batch of appeals filed by...
CESTAT Hyderabad Sets Aside ₹26.60 Lakh Customs Duty Demand, Rules Imported Quicklime Is Not Chemical Product
The Hyderabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has allowed the appeal filed by V I S A Steel Ltd., holding that imported quicklime is classifiable as lime under the Customs Tariff and not under the tariff entry applicable to chemically defined compounds. The tribunal set aside a differential customs duty demand of ₹26.60 lakh, along with the interest and penalty. A bench of Judicial Member Angad Prasad and Technical Member P. Anjani Kumar observed: ...
CESTAT Ahmedabad Says Director's Position Alone Cannot Attract Customs Penalty Quashes ₹1 Cr Levy
On 9 July, the Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that a company director cannot be penalised under the Customs Act, 1962 merely because of his position in the company unless the Department proves his active involvement in the alleged offence. Judicial Member Dr. Ajaya Krishna Vishvesha and Technical Member Satendra Vikram Singh allowed the appeal filed by Global Enterprises' director Altaf Ahmed and set aside the Rs. 1 crore penalty imposed...
CESTAT Mumbai Sets Aside Customs Broker Licence Revocation For Lack Of Independent Findings
The Mumbai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has set aside the revocation of a Customs Broker's licence. It found that the customs department failed to establish that the broker had breached its obligations while handling exports that were later alleged to have been overvalued to claim higher duty drawback. A tribunal comprising Judicial Member S.K. Mohanty and Technical Member M.M. Parthiban held that the licensing authority had failed to independently...
CESTAT Chennai Sets Aside Customs Duty Demand After Royalty Was Added To Import Value
The Chennai bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has set aside a customs duty demand that arose after royalty payments were added to the transaction value of imported raw materials. The tribunal followed its earlier ruling in the same company's case after finding that the Revenue had not shown any change in facts, produced any new document, or established any change in law to justify taking a different view. The bench of Judicial Member P. Dinesha and...
CESTAT Allahabad Sets Aside Gold Seizure, Finds Customs Relied On Unreliable Panchnama And Retracted Statements
The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Allahabad, has set aside a customs order confiscating gold jewellery and bullion. It held that the panchnama forming the foundation of the case was unreliable because the Department failed to substantiate it by examining the panch witnesses. A bench of Judicial Member P.K. Choudhary and Technical Member P. Anjani Kumar held that the Revenue's case also rested on statements that had been retracted at the first available...
CESTAT Chennai Rejects Reclassification Of Nikrothal Wire To Stainless Steel Wire CTH
The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 2 July held that the Customs Department cannot reclassify imported Nikrothal wire from Customs Tariff Heading (CTH) 75052200 (Nickel Alloy Wire) to CTH 72230091 (Stainless Steel Wire) when the issue has already been decided in the importer's own case and there is no change in facts or law. Judicial Member P. Dinesha and Technical Member M. Ajit Kumar allowed an appeal filed by Alleima India Private Limited...
Duty-Free Gold Cannot Be Confiscated If DGFT Later Regularises Supporting Manufacturers: CESTAT Kolkata
The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Kolkata Bench, has held that duty-free gold imported under the Advance Authorisation Scheme cannot be confiscated merely because it was sent to job workers who were not initially listed as supporting manufacturers. The tribunal held that the Directorate General of Foreign Trade (DGFT) had later regularized their inclusion and that there was no evidence the gold had been diverted to unauthorised entities in violation of the...