Import Value Cannot Be Re-Determined Solely Based On Local Engineer Certificate: CESTAT Chennai

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal on 25 March held that the declared value of imported second-hand machinery cannot be rejected and re-determined solely on the basis of a local Chartered Engineer's certificate. A Bench comprising Judicial Member P. Dinesha and Technical Member Vasa Seshagiri Rao allowed an appeal filed by Abirami Weaving Mills against an order of the Commissioner (Appeals), Tiruchirappalli. It held: “...we are of the view that the...

CESTAT Mumbai Allows Flipkart Appeal, Rules Re-Determination Of Import Value Unsustainable Without Evidence

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 9 March, held that re-determination of value of imported goods without proper evidence of undervaluation is unsustainable in law. A Bench comprising Judicial Member Justice S.K. Mohanty and Technical Member M.M. Parthiban allowed an appeal by Flipkart India Pvt. Ltd., which challenged the enhancement of value, confiscation of goods, and imposition of penalty by the customs authorities. The Bench stated: ...

Confiscation Cannot Survive Once Declared Transaction Value Is Accepted: CESTAT Mumbai

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 17 March, held that the confiscation of imported goods under Section 111(m) of the Customs Act cannot be sustained once the declared transaction value is accepted. A Bench comprising Judicial Member Ajay Sharma, set aside the confiscation of goods, redemption fine and penalties imposed on Kumar Impex, reasoning that once the transaction value is accepted, the allegation of undervaluation and resulting revenue...

Crossing Green Channel With Gold Hidden In Paste Form Shows Intent To Smuggle: CESTAT Hyderabad

The Hyderabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that a passenger's concealment of gold in paste form on the body and crossing the green channel at an international airport clearly establishes intent to smuggle, justifying absolute confiscation and penalty under the Customs Act, 1962. A single-member bench of Judicial Member Angad Prasad observed that concealment and non-declaration after opting for the green channel show deliberate evasion: "Once...

Paddy Reaper Without Binder Not Eligible For Customs Duty Exemption: CESTAT Chennai

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 18 March, held that paddy reapers imported without a binder attachment cannot claim concessional duty under Notification No. 12/2012-Cus., which applies only to “reaper-cum-binder” machines. A Bench of Judicial Member P. Dinesha and Technical Member Vasa Seshagiri Rao partly allowed the appeal filed by VST Tillers Tractors Ltd., while also holding that confiscation and penalty cannot be imposed where there...

CESTAT Sets Aside ₹82 Crore Customs Duty Demand On Dell, Says SEZ-To-DTA Laptop Sales Not 'Personal Imports'

The Chennai bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has set aside a customs duty demand of over Rs 82 crore against Dell International Services India Pvt. Ltd., holding that laptops, desktops, and monitors cleared from its SEZ unit to customers in the Domestic Tariff Area (DTA) cannot be treated as “dutiable goods” or “personal imports” under the Customs Tariff Act.The bench, consisting of Judicial Member P. Dinesha and Technical Member Vasa Seshagiri...

Chennai CESTAT Allows Duty Exemption For JSW Steel, Rules Belated Reports Cannot Override Notice

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 10 March held that customs authorities cannot deny exemption by relying on test reports that were not part of the Show Cause Notice, and that adjudication cannot travel beyond the allegations contained in the notice. A Bench of Judicial Member P. Dinesha and Technical Member Vasa Seshagiri Rao set aside the demand raised against JSW Steel Ltd., holding that the imported coal satisfied the exemption...

Minimum Import Price Not Applicable To Domestic Tariff Clearances By 100% EOUs: CESTAT Ahmedabad

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 3 March held that the Minimum Import Price (MIP) set by the Directorate General of Foreign Trade (DGFT) cannot be used to increase the assessable value of goods cleared by a 100% Export Oriented Unit (EOU) to the Domestic Tariff Area (DTA) unless there is evidence of undervaluation.The Bench, comprising Judicial Member Somesh Arora and Technical Member Satendra Vikram Singh, partly allowed Exotic Granite...

CESTAT Delhi Sets Aside ₹19.76 Crore Customs Duty Demand on Privilege Airways Over Falcon 2000 Aircraft Import

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) at New Delhi recently set aside a customs duty demand of nearly Rs 19.76 crore raised against Privilege Airways Pvt. Ltd. over the import of a Falcon 2000 aircraft. The tribunal held that an aircraft imported for non-scheduled passenger services can also be used for non-scheduled charter services under Notification No. 21/2002-Customs. The Bench of Judicial Member S. S. Garg and Technical Member P. V. Subba Rao held that such...

Customs Can Levy Duty On Modular Kitchens, Not Re-Determine Value Arbitrarily: CESTAT Chennai

The Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that customs duty is applicable to imports of modular kitchens in CKD/SKD condition, but the declared transaction value cannot be rejected or enhanced merely on the basis of a weight-based comparison or administrative valuation guidelines.The bench, consisting of Judicial Member P. Dinesha and Technical Member Vasa Seshagiri Rao, examined whether the Department was justified in rejecting the...

CESTAT Quashes Rs 3.47 Crore Duty Demand On Myntra Jabong, Says No Wilful Suppression

The Delhi Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on Friday set aside a Rs 3.47 crore customs duty demand against Myntra Jabong India Pvt Ltd, holding that the extended limitation period under Section 28(4) of the Customs Act could not be invoked in a classification dispute.Allowing the appeal, The Tribunal noted that the company had deposited the entire differential duty along with interest before issuance of the show cause notice and that its failure to mention the...

Second-Hand Digital Multifunction Machines Imported Pre-2012 Not Confiscable: CESTAT Chennai

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) on 19 February held that second-hand digital multifunction print and copying machines imported before June 2012 were freely importable and not liable to confiscation. A Bench comprising Judicial Member P. Dinesha and Technical Member Vasa Seshagiri Rao were hearing an appeal by Jaya Trading Company. The members examined whether the rejection of the importer's appeal on limitation was legally sustainable and...