CESTAT Mumbai Reiterates 10% Customs Duty Benefit On Enterprise Ethernet Switches

Reiterating that customs authorities cannot deny a concessional duty without objective evidence, the Mumbai bench of the Customs, Excise and Service Tax Appellate Tribunal has allowed Digisol Systems' appeal and extended the benefit of 10% customs duty on imported enterprise Ethernet switches and transceivers.A bench comprising Judicial Member S.K. Mohanty and Technical Member M.M. Prathiban was hearing an appeal filed by Digisol Systems, a provider of IT networking solutions and consultancy...

Belated Detection Of Importer's Misuse Of Duty-Free Imports Cannot Be Attributed To Customs Broker: CESTAT

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal has set aside the revocation of the Customs Broker licence of Aggressive Shipping & Logistics Pvt. Ltd. It held that diversion or misuse of duty-free imports by an importer, detected later by the Directorate of Revenue Intelligence (DRI), cannot automatically be attributed to the Customs Broker. A coram of Judicial Member S K Mohanty and Technical Member M.M. Parthiban was hearing an appeal against an order of the...

Customs | Goods Cannot Be Confiscated Solely On Local Market Survey/Opinion Without Proof Of Smuggling: CESTAT Allahabad

The Allahabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that goods cannot be confiscated merely on the basis of a local market survey or opinion in the absence of proof of smuggling. The Tribunal observed that the burden to prove that the goods are smuggled lies on the department.P.K. Choudhary (Judicial Member) stated that the Department has not discharged its burden. Since betel nuts are also produced in India. In the absence of any evidence that confiscated...

Customs | Knitted Ready-Made Garments Fall Under CTH 6102, 10% Drawback Rate Applicable: CESTAT Kolkata

The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that knitted ready-made garments, such as Gents' shirts, Ladies' dresses, and coats, are classifiable under CTH 6102; hence, the exporters are entitled to a 10% drawback rate subject to a maximum of Rs. 45/- per piece. R. Muralidhar (Judicial Member) and K. Anpazhakan (Technical Member) stated that from the descriptions of the goods as contained in the concerned shipping bills, it can be...

Customs Act | 'Prohibition Includes Restriction': CESTAT Chennai Holds S.111(d) Covers Both Complete & Partial Restricted Imports

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that under Section 111(d) of the Customs Act, the term 'prohibition' includes both complete and partial restrictions under the Foreign Trade Policy. Hence, restricted goods imported without fulfilling mandatory conditions are treated as prohibited, which attracts confiscation and a penalty. Section 111(d) of the Customs Act, 1962, makes goods liable for confiscation if they are imported, or attempted...

Customs Brokers Regulations | Broker Cannot Be Penalised Solely For Exporter's Misdeclaration: CESTAT Principal Bench

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Principal Bench, New Delhi, has set aside the revocation of a Customs Broker licence, holding that mis-declaration of goods by the exporter, by itself, does not establish violation of obligations under the Customs Broker Licensing Regulations (CBLR), 2018. A Bench comprising Justice Dilip Gupta (President) and P.V. Subba Rao (Member – Technical) allowed the appeal filed by the assesse, M/s Silver Line Global Freight Pvt....

Customs | Direct Reliance On NIDB Data For Re-Assessment Of Import Value Not Permissible: CESTAT Kolkata

The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that Customs cannot directly rely on NIDB (National Import Database) data to enhance import value. R. Muralidhar (Judicial Member) and K. Anpazhakan (Technical Member) noted that the adjudicating authority straightaway has re-determined the value on the basis of NIDB data retrieved, indicating the Bill of Entry and the description of the goods, which is legally not maintainable. In the...

Separate Proceedings Under Customs Act Not Permissible Once CBLR Proceedings Are Initiated: CESTAT Kolkata

The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that separate proceedings under the Customs Act are not permissible once CBLR (Customs Brokers Licensing Regulations, 2018) proceedings are initiated. R. Muralidhar (Judicial Member) and K. Anpazhakan (Technical Member) opined that once separate proceedings have been initiated against the assessee under CBLR, 2018, for violation of the provisions of the said Regulations, no separate penalty is...

Zinc EDTA Is Fertiliser, Not A Chemical; Lower Customs Duty Applicable: CESTAT Chennai

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that Zinc EDTA is classifiable as a fertiliser under Customs Tariff Item (CTI) 3105 9090, and not a chemical salt under CTI 29224990 as stated by the revenue.Ajayan T.V. (Judicial Member) and Ajit Kumar (Technical Member) noted that Zinc EDTA contains Nitrogen, which is an essential fertilising element. The Tribunal further stated that …….as per Note 6 to Chapter 31, for the purposes of CTH...

Customs | Bills Of Entry Cannot Be Reassessed After Clearance Merely To Claim Refund Based On Later SC Judgment: CESTAT Mumbai

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Mumbai has held that reassessment of Bills of Entry cannot be sought at a belated stage after clearance of goods merely to claim refund on the basis of a favourable Supreme Court judgment delivered in another assessee's case. A Division Bench comprising Dr. Suvendu Kumar Pati (Judicial Member) and M.M. Parthiban (Technical Member) dismissed the appeal filed by the assessee, M/s Minerva Enterprises and upheld the order of...

Customs Act | 'Goods Already Re-Exported Cannot Be Confiscated': CESTAT Mumbai Sets Aside Absolute Confiscation Order

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT) Mumbai has set aside the absolute confiscation of imported goods ordered by the Commissioner (Appeals), holding that once the goods had already been re-exported prior to the filing of the Revenue appeal, the order for absolute confiscation of goods is not sustainable in law. The Bench of Member (Judicial) Ajay Sharma was hearing an appeal filed by the assessee challenging the Order-in-Appeal passed by the...

Customs Duty Payable On Imported Goods Lost In Fire; Exemption Not Available: CESTAT New Delhi

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that imported goods which are not used for manufacturing due to fire do not qualify for exemption under Notification No. 12/2012-CUS dated 17.03.2012 and hence, customs duty is payable on such goods. The exemption Notification No. 12/2012-CUS dated 17.03.2012 allows the importers to import certain goods at a concessional or NIL customs duty. Justice Dilip Gupta (President) and P.V. Subba...