CESTAT Kolkata Sets Aside Service Duty On Sterling Meta-Plast, Excludes Franchise Fees, AMP From Value

The Kolkata Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) on 26 May held that franchise fees, advertisement and promotional expenses, and corporate marketing fees paid under brand licensing arrangements for Tommy Hilfiger and French Connection eyewear are not includible in the assessable value of imported goods. Judicial Member Ashok Jindal and Technical Member K. Anpazhakan reasoned that the expenses are not linked to the import transaction or a condition of sale...

Ergotamine Preparation Export Needed No NOC From Narcotics Commissioner: CESTAT Delhi Sets Aside Penalty

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT) at Delhi has recently held that the export of the pharmaceutical product in question containing 1% Ergotamine did not require prior clearance from the Narcotics Commissioner, setting aside a ₹50,000 penalty imposed on customs broker Unnati Cargo. The single-member bench of Judicial Member Binu Tamta held that the product could at best be treated as a preparation of Ergotamine and not as “Ergotamine and its salts,” the category...

CESTAT Allahabad Says Customs Cannot Reassess Value Of Goods After Clearance For Home Consumption

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Allahabad has recently set aside a customs duty demand of over ₹10.22 crore against Uttam Steel Alloys after finding multiple flaws in the department's case, including its attempt to enhance the value of goods after they had already been cleared for home consumption. A coram of Judicial Member P K Choudhary and Technical Member P Anjani Kumar held that once goods are cleared for home consumption, they cease to retain the character...

Home Fiber Broadband Devices ONT, OLT Are Data Transmission Machines, Not Residual Telecom Equipment: CESTAT Delhi

The Principal Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi has held that Optical Network Terminals (ONT/ONU) and Optical Line Terminals (OLT) imported by GX India Pvt. Ltd. are machines used to receive and transmit data. It rejected the company's classification of ONT/ONU as “subscriber end equipment” and OLT under the residual “other” category. A bench of President Justice Dilip Gupta and Technical Member P.V. Subba Rao partly allowed GX India's...

Customs Can Rely On Additional Documents Showing Wrong Export Declarations For Reassessment: CESTAT Hyderabad

The Hyderabad Bench of the CESTAT has held that Customs authorities can rely on subsequently obtained documents to revisit self-assessed export shipping bills if those documents reveal wrong declarations made at the time of export. A bench of Judicial Member Angad Prasad and Technical Member A.K. Jyotishi observed: “Essentially, on the issue of whether in the case of re-assessment, the department can resort to various other information, which came to their knowledge subsequently and demand...

CESTAT Delhi Sets Aside Penalty Against Company As No Proof It Knew Goods Were Liable To Confiscation

The Principal Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi has set aside a Rs.10 lakh penalty imposed on Rathi Iron & Steel Ind. Ltd., finding no material to show that the company had dealt with goods allegedly removed without payment of duty or had knowledge or belief that they were liable to confiscation. A bench of President Justice Dilip Gupta and Technical Member P. Anjani Kumar held,“The appellant had not dealt with the goods that may be liable...

Importer Cannot Contest Customs Reassessment After Accepting Enhanced Value: CESTAT Delhi

The Principal Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi, has dismissed an importer's challenge to enhancement of customs value after finding that it had accepted the revised valuation, paid duty, and cleared the goods without protest. A bench of President Justice Dilip Gupta and Technical Member P.V. Subba Rao distinguished the Delhi High Court's ruling in Niraj Silk Mills, where the importer had consistently protested the reassessment and sought...

CESTAT Delhi Holds GE Vernova's Imported Products Are Relays, Not Multifunctional Devices

The Principal Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi has held that four imported products of GE Vernova T&D India Ltd., including relay products with additional monitoring, data logging and alarm features, remain classifiable as “relays.” The tribunal held that their principal function continues to be protection and control of electrical systems. A bench of President Justice Dilip Gupta and Technical Member P.V. Subba Rao partly allowed...

CESTAT Ahmedabad Sets Aside CVD Demand On Imports Made Under Advance Authorisation During Transitional Period

The Ahmedabad Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) has allowed appeals filed by Ratnaveer Stainless Products Pvt. Ltd., its director and a customs broker. The dispute concerned Countervailing Duty (CVD) liability on imports made under Advance Authorisation between September 7, 2017 and October 12, 2017. A bench of Judicial Member Dr. Ajaya Krishna Vishvesha and Technical Member Satendra Vikram Singh passed the order. Holding that the issue was “no more...

'Orchestrated Attempt' To Misuse Gold Export Promotion Scheme: CESTAT Chennai Upholds Customs Act Penalties

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 8 May upheld penalties against exporters, customs brokers and a customs officer in a case involving the alleged export of gold-plated copper jewellery as “22 carat gold jewellery” to fraudulently divert duty-free imported gold under an export promotion scheme. Judicial Member P. Dinesha and Technical Member Vasa Seshagiri Rao noted that the customs broker and its personnel facilitated examination of...

CESTAT Allahabad Holds Department Must Prove RMC Manufacture Before Levying Excise Duty On Concrete Mix

The Allahabad Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) on 14 May held that concrete mix manufactured and consumed at construction sites for residential projects qualifies for exemption from central excise duty and cannot be classified as “Ready Mix Concrete” (RMC) without technical evidence establishing the characteristics of RMC manufacturing. Judicial Member P.K. Choudhary and Technical Member Rajeev Tandon held that the Department failed to prove that...

Licence Fee, Technical Assistance Charges Not Part Of Customs Value Unless Condition Of Sale: CESTAT Delhi

The Principal Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi has held that licence fees, engineering package charges, and technical assistance payments cannot be added to the assessable value of imported equipment where they are separately contracted and are not a condition of sale. A bench of Judicial Member Binu Tamta and Technical Member P.V. Subba Rao observed, “Law has been settled that once separate prices are provided for the supply of technical...