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...

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...

CESTAT Chennai Allows JSW Steel ₹1.62 Crore Refund After Excess Export Duty Remained Unassessed Until 2015

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) at Chennai has allowed JSW Steel Ltd.'s claim for a ₹1.62 crore refund of excess export duty. It held that the limitation period could not be counted from the date of the original payment when the excess amount was identified only upon reassessment in 2015.The bench comprising Judicial Member Ajayan T.V. and Technical Member Vasa Seshagiri Rao observed that the additional amount paid by JSW Steel was never...

CESTAT Hyderabad Upholds Customs Duty Exemption For Reliance's Plant Used In Petroleum Operations

The Customs, Excise and Service Tax Appellate Tribunal, Hyderabad has upheld customs duty exemption for Reliance Industries Ltd. on its import of a Mono Ethylene Glycol Reclamation Plant used in petroleum operations. It ruled that the benefit could not be denied merely because the plant was classified under a different tariff heading from Heading 8430, which was mentioned alongside the relevant entry in the exemption list.The tribunal observed that a plain reading of the exemption notification...

CESTAT Mumbai Sets Aside ₹1.80 Crore SAD Demand Against Emerson Process Management

On 2 September, the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai set aside a Special Additional Duty of Customs (SAD) demand of Rs.1,79,95,057 against Emerson Process Management (India) Private Limited for the period from April 2012 to July 2013. A Bench comprising Judicial Member Ajay Sharma and Technical Member M.M. Parthiban held that the extended period of limitation could not be invoked in the absence of suppression of facts or mala fide intention, as the company's...

Customs Must Verify Certificates Of Origin Before Denying Preferential Tariff Benefit: CESTAT Ahmedabad

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Ahmedabad on 31 August held that the Customs Department cannot deny preferential tariff benefit or invoke the extended limitation period against an importer merely on the suspicion that Certificates of Origin are fraudulent, without completing the prescribed verification process and establishing the importer's involvement in the alleged fraud. A Bench comprising Judicial Member Somesh Arora and Technical Member A.K. Jyotishi...

Customs Cannot Reclassify Fabrics Without Laboratory Test To Determine Composition: CESTAT Kolkata

On 25 August, the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Kolkata held that Customs authorities cannot change the classification of imported fabrics merely on the basis of their description without conducting a laboratory test to determine their actual composition. A Bench comprising Judicial Member R. Muralidhar and Technical Member K. Anpazhakan set aside a Rs. 39.12 lakh differential customs duty demand against Elvance Overseas LLP, holding that the Department could not...

Natural Rubber Latex Toy Balloons Classifiable As 'Toys', Not As 'Rubber Articles': CESTAT New Delhi

On 24 August, the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi held that toy balloons made of natural rubber latex are classifiable under Customs Tariff Heading (CTH) 9503 as “toys” and not under Chapter 40 as “rubber products.” Officiating President Dr. Rachna Gupta and Technical Member Hemambika R. Priya upheld the Revenue's classification of the goods imported by Vee Vee Enterprises, JMD Impex and V.K. Import Export Co. stating that specific functional...

12% Interest Payable On Redemption Fine Deposits From Date Of Deposit: CESTAT Chandigarh

The Chandigarh Customs Excise and Service Tax Appellate Tribunal (CESTAT) on 21 August held that interest at 12% per annum is payable on redemption fine amounts deposited by an importer for securing release of goods, from the date of deposit until the date of actual refund, holding that such interest is compensatory in nature. A Bench comprising Judicial Member S.S. Garg allowed two appeals filed by Hindustan Distributors seeking interest on refunds of Rs. 18 lakh and Rs. 27 lakh representing...

Customs Act | CESTAT Chennai Holds S.117 Penalty Cannot Be Imposed Without Finding Of Contravention

The CESTAT, Chennai has set aside the ₹4 lakh penalty imposed on Dahnay Logistics Pvt. Ltd. under Section 117 of the Customs Act, finding that there was no established contravention warranting penalty.A Bench comprising Ajayan T.V., Member (Judicial) found that 100% examination of the cargo had revealed nothing objectionable and that the documents furnished by Dahnay Logistics were not found wanting.The Tribunal held that Section 117 could not be invoked mechanically and that a penalty required...