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...

CESTAT Mumbai Sets Aside Customs Value Enhancement Based Solely On DRI Alert In Fabric Import Case

The Mumbai Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) on 19 February set aside the enhancement of value of imported knitted fabrics, holding that customs authorities cannot reject the declared transaction value solely on the basis of a DRI Alert and NIDB data without following the procedure prescribed under law. The Bench, comprising Judicial Member Dr. Suvendu Kumar Pati and Technical Member M.M. Parthiban, was hearing an appeal filed by Kumar Mahendra Exim...

Incorrect Tariff Classification Not Enough To Invoke Extended Limitation Or Penalty: CESTAT Delhi

On 23 February, the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi held that mere misclassification of imported goods in a Bill of Entry cannot automatically lead to invocation of the extended period of limitation, confiscation of goods, or imposition of penalty in the absence of intent to evade duty. A Bench comprising the President Justice Dilip Gupta and Technical Member P.V. Subba Rao, partly allowed the appeal by iValue Infosolutions Private Limited, and set aside...

CESTAT Sets Aside Customs Broker Licence Revocation, Cites Contradictory Findings

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT) at Mumbai recently set aside the revocation of a Customs Broker licence after finding that the adjudicating authority recorded contradictory findings. A bench of Judicial Member S.K. Mohanty and Technical Member M.M. Parthiban allowed the appeal filed by Fairdeal Shipping Agency Pvt. Ltd. against the order of the Principal Commissioner of Customs (General), Mumbai. “Such apparent contradiction in the findings of the...

CESTAT New Delhi Sets Aside Duty Demand Of Criticallog India, Holds BIS Not Required For Spare Parts

On Wednesday 18 February, the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi, set aside the duty demand, confiscation, and penalties that the authorities imposed on Criticallog India Pvt. Ltd. for imported “Memory” and “Power Supply” items. The Tribunal held that a BIS registration does not apply to spare parts imported for warranty replacement. A Bench comprising President Justice Dilip Gupta and Technical Member Ms. Hemambika R. Priya, ruled that the appellate...

Statements Recorded During Customs Probe Cannot Be Relied Upon Without Examining Witness Before Authority: CESTAT Delhi

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) at Delhi has recently set aside penalties of Rs 25 lakh each imposed on Committed Logistics Pvt. Ltd. and its Director Vikas Chaudhary, holding that statements recorded by customs officers cannot be treated as relevant evidence unless the mandatory procedure under the law is followed. A coram of President Justice Dilip Gupta, and Member P.V. Subba Rao held that the penalties were imposed solely on the basis of statements recorded...