Retracted Statement Cannot Simply Be Brushed Aside : CESTAT

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the contents of the retracted statement cannot simply be brushed aside to conclude that the assessee/appellant has indulged in the activity of undervaluation of goods.The two-member bench of S.K. Mohanty (Judicial Member) and P. Anjani Kumar (Technical Member) has observed that merely because an assessee has, under the stress of investigation, signed a statement admitting tax liability and...

SFPs Classifiable As Parts Of Telecom Equipment: CESTAT Allows Customs Duty Exemption To Reliance Jio Infocomm

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has granted the customs duty exemption to Reliance Jio Infocomm and held that Customs Excise and Service Tax Appellate Tribunal (CESTAT) is classifiable as part of telecom equipment. The two-member bench of S.K. Mohanty (Judicial Member) and P. Anjani Kumar (Technical Member) has observed that the SFP is part of the I/O card module of the Ethernet switch apparatus, which can function only when connected...

CESTAT Quashes Order Of Forfeiture Of Security Deposit, Sustained The Penalty On Customs Broker

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has quashed the order of forfeiture of security deposit of Rs. 5 lakhs but sustained the penalty of Rs. 50,000 on the Customs Broker.The two-member bench headed by Justice Dilip Gupta (President) and Raju (Technical Member) has observed that the forfeiture of security deposit of Rs. 5 lakhs and imposition of a penalty of Rs. 50,000 under Regulation 18 of CBLR, 2018 is excessive. The appellant filed the...

Amount Lying After Wrong Invocation Of The Bank Guarantee: CESTAT Directs Payment of Interest

The Delhi Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the amount was lying in the nature of the pre-deposit with the department from the date of encashment of the bank guarantee. The bench of Anil Choudhary (Judicial Member) has observed that the appellant is entitled to 12% interest from the date of encashment of the bank guarantee under Section 129EE of the Customs Act. The appellant is a manufacturer-exporter of leather goods. They had re-imported a...

Exporter Not liable For 'Change Of Landing Port' Instructions Given By Importer: CESTAT

The Ahmedabad Bench of the Customs, Excise and Service Tax Tribunal (CESTAT) has ruled that the exporter is not responsible for the instructions given by the importer regarding the change in the port after the issuance of a "Let Export Order" by the customs authority. The two-member bench of Ramesh Nair (Judicial Member) and Raju (Technical Member) has observed that the appellant lost the ownership of the goods as soon as the "let export order" was issued by the Customs authorities....

Licit Possession Of Confisticated Gold Bars Received By Way Of Succession: CESTAT Set Aside Penalty

The Delhi Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has set aside the penalty under section 114AA of the Customs Act on the ground of licit possession of confisticated gold bars received by way of succession. The two-member bench of Anil Choudhary (Judicial Member) and Raju (Technical Member) has observed that the appellant has reasonably explained the licit possession of the two gold bars, as received by way of succession under the will of his father. But...

Tax Cases Weekly Round-Up: 22 May To 28 May 2022

Supreme Court Case Name: Union of India And Anr. v. M/s. Mohit Minerals Through Director Citation: 2022 LiveLaw (SC) 500 Separate IGST On Indian Importers For Ocean Freight Against Concept Of "Composite Supply", Violates Section 8 CGST Act : Supreme Court The Supreme Court has held when the Indian importer is liable to pay Integrated Goods and Services Tax (GST) on the 'composite supply', which includes supply of goods and supply of services of transportation, insurance, etc. in...

Failure Of Customs Broker To Observe Due Diligence Leading To Facilitate Fake Importers: CESTAT Revokes Licence

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) affirmed the revocation of the customs broker's licence because the customs broker failed to conduct due diligence, allowing fake importers to operate.The two-member bench of S.K. Mohanty (Judicial Member) and P. Anjani Kumar (Technical Member) observed that the institution of customs brokers was created to facilitate the import and export of trade and, at the same time, to take care of the interests of...

Foreign Origin Gold Bar With Unexplained Source Is Liable For Absolute Confiscation As It amounts To Importation Of Prohibited Goods: CESTAT

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) consisting of P.Dinesha (Judicial Member), while remanding the matter back, held that the gold bar with a foreign marking, the source of which is not explained, is liable for absolute confiscation since the same would amount to the importation of a prohibited good. A specific intelligence was gathered that foreign-origin gold was being smuggled into India by way of concealment, cleared through Anna ...

Exported Goods Cannot Be Confiscated Under Section 113 Of Customs Act: CESTAT Hyderabad

The Hyderabad Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has ruled that Section 113 of the Customs Act only provides for confiscation of goods that are to be exported and not for goods which have already been exported. The Bench, consisting of P.K. Choudary (Judicial Member) and P. Venkata Subba Rao (Technical Member), held that the purpose of the Drugs and Cosmetics Act, 1940 is not to regulate exports, but only to regulate the import, manufacture, sale and...

Unsubstantiated Show Cause Notice And Cancellation Of Licence: CESTAT Restore Customs Broker's Licence

The Delhi bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) headed by Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) has restored the customs broker's licence as the show cause notice or the inquiry report lacked details about the non-existence of the exporter. The appellant, M/s. Perfect Cargo and Logistics, is licenced as a customs broker under the Customs Broker Licensing Regulation, 2018 (CBLR). The appellant's licence was revoked by...

Whether Nikon Eligible For Custom Duty Exemption Under Information Technology Agreement: Question Referred To Larger Bench

The Delhi Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) consisting of Justice Dilip Gupta (President) and P.V.Subba Rao (Technical Member) has referred the issue of eligibility to avail the benefit of the exemption of Basic Custom Duty (BCD) under Information Technology Agreement (ITA)on Digital Still Image Video Cameras imported by Nikon to the larger bench.Nikon has been engaged in the import and trade of various electronic products, including digital still image...