Customs | FOB Value Determined Between Parties Protected By Privity Of Contract; Cannot Be Modified By Stranger: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the FOB (Free On Board) value determined between the parties is protected by privity of contract, and it cannot be modified by a stranger to the contract. Justice Dilip Gupta (President) and Hemambika R. Priya (Technical Member) opined that FOB value is the product of negotiations and deliberations between the parties to the contract, which value cannot be modified by any stranger to...

Customs | Royalty For Technical Know-How Not 'Condition Of Sale' Even If Included In Value Of Imported Goods: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that royalty paid for technical know-how is not a 'condition of sale' merely because it is included in the value of imported goods. Justice Dilip Gupta (President) and Hemembika R. Priya (Technical Member) opined that both the Technical Agreements relate to transfer of technical know-how, amongst others, in the form of design sheets detailing manufacturing methods and specifications of raw...

Customs Act | Excel Sheet Recovered From Assessee's Email Can Be Relied Upon For Valuation Even Without S.138C Certificate: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that an Excel sheet recovered from the email account of the assessee can be relied upon to determine the value of imported goods, even without a certificate under Section 138C of the Customs Act, 1962. Section 138C of the Customs Act, 1962 would apply if the information is printed from a computer, and the certificate should certify that the computer was being used for the purpose of business...

Incorrect Declaration In Bill Of Entry Attracts Penalty U/S 114AA Of Customs Act: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) stated that imports and filing of the Bill of Entry are transactions of business under the Customs Act. Section 114AA would squarely apply to those transactions. In this case, the importer filed a Bill of Entry to clear goods imported by it and self-assessed the duty payable on them. The department examined...

CESTAT Quashes ₹56.47 Crore Customs Duty Demand On Dish TV Over Smart Card Classification

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Principal Bench, New Delhi, recently set aside a ₹56.47 crore customs duty demand against Videocon D2H Limited (now Dish TV India Ltd) in a dispute over the classification of imported smart cards. A coram of Justice Dilip Gupta (President) and Technical Member P V Subba Rao quashed an order dated April 28, 2020, passed by the Additional Director General (Adjudication), DRI. The tribunal observed that “Merely because ...

Preloaded Software On Imported Navigation Devices Liable To Customs Duty: CESTAT

The Bangalore Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that value of preloaded software to be included in assessable value of imported navigation devices and is liable to customs duty. Dr. D.M. Misra (Judicial Member) and Pullela Nageswara Rao (Technical Member) were addressing the issue of whether the value of software preloaded/ etched into the imported navigation systems, be included in the assessable value of the said navigation systems and...

Goods Used As Implants Or Rehabilitation Aids Are Eligible For Customs Duty Exemption: CESTAT

The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that goods used as implants or rehabilitation aids are eligible for Customs Duty exemption. S.K. Mohanty (Judicial Member) and M.M. Parthiban (Technical Member) observed that “since, the implants such as repair of knee, hip and other joints, shoulder and various other parts of the body; repair of soft tissue injuries and degenerative conditions of the shoulder etc., are in the nature of...

Section 114 AA Customs Act Applicable Only For Dummy Exports Made Only On Paper, Not Actual Export Of Goods: CESTAT

The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that Section 114 AA Customs Act is applicable only for dummy exports made only on paper, not actual export of goods. Section 114AA of the Customs Act, 1962, penalizes the use of false or incorrect declarations, statements, or documents in any transaction related to customs business. Specifically, it applies to individuals who knowingly or intentionally make, sign, use, or cause to be made,...

Customs | Counter Vailing Duty Not Applicable On Import Of Pan Masala Processing Machines: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that Counter Vailing Duty (CVD) is not applicable on import of pan masala processing machines. Dr. Rachna Gupta (Judicial Member) and P.V. Subba Rao (Technical Member) stated that the assessee is the manufacture of the PanMasala and has imported the machines for cutting / grinding / sorting of Areca Nuts (Supari/seed), the raw material of the Pan Masala. From the description of the three of...

Customs Act | Mere Purchase Of Gold Without Bill Not Enough To Prove Gold Smuggling: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that mere purchase of gold without bill not enough to prove gold smuggling. Dr. Rachna Gupta (Judicial Member) opined that the mere act of purchasing gold without bill is highly insufficient to confirm the grave allegations of conspiring the act of smuggling of gold. The order imposing penalty on the appellants and confiscating their money is not sustainable. Section 121 of Customs Act,...

No Service Tax On 'Upfront Fee' Received By DMRC From Customers Under Concession Agreement: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that no service tax on 'upfront fee' received by DMRC (Delhi Metro Rail Corporation) from customers under concession agreement. Binu Tamta (Judicial Member) and Hemambika R. Priya (Technical Member) was addressing the issue of whether the “upfront fee” received by the Delhi Metro Rail Corporation Ltd. from various customers under the Concession Agreements entered prior to 1.7.2010 is exigible...

Customs Act | Bonafide Declaration Of Value Of Goods Can't Be Treated As Suppression Merely For Being Incorrect: CESTAT

The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that bonafide declaration of value of goods can't be treated as suppression merely for being incorrect. The Bench of Justice Dilip Gupta (President) and Hemambika R. Priya (Technical Member) has observed that the declaration of the value of goods was a bonafide declaration and merely because it is ultimately found to be incorrect will not mean that the valuation was with a bad motive not...