Customs Must Verify Certificates Of Origin Before Denying Preferential Tariff Benefit: CESTAT Ahmedabad

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Ahmedabad on 31 August held that the Customs Department cannot deny preferential tariff benefit or invoke the extended limitation period against an importer merely on the suspicion that Certificates of Origin are fraudulent, without completing the prescribed verification process and establishing the importer's involvement in the alleged fraud. A Bench comprising Judicial Member Somesh Arora and Technical Member A.K. Jyotishi...

Customs Cannot Reclassify Fabrics Without Laboratory Test To Determine Composition: CESTAT Kolkata

On 25 August, the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Kolkata held that Customs authorities cannot change the classification of imported fabrics merely on the basis of their description without conducting a laboratory test to determine their actual composition. A Bench comprising Judicial Member R. Muralidhar and Technical Member K. Anpazhakan set aside a Rs. 39.12 lakh differential customs duty demand against Elvance Overseas LLP, holding that the Department could not...

Natural Rubber Latex Toy Balloons Classifiable As 'Toys', Not As 'Rubber Articles': CESTAT New Delhi

On 24 August, the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi held that toy balloons made of natural rubber latex are classifiable under Customs Tariff Heading (CTH) 9503 as “toys” and not under Chapter 40 as “rubber products.” Officiating President Dr. Rachna Gupta and Technical Member Hemambika R. Priya upheld the Revenue's classification of the goods imported by Vee Vee Enterprises, JMD Impex and V.K. Import Export Co. stating that specific functional...

12% Interest Payable On Redemption Fine Deposits From Date Of Deposit: CESTAT Chandigarh

The Chandigarh Customs Excise and Service Tax Appellate Tribunal (CESTAT) on 21 August held that interest at 12% per annum is payable on redemption fine amounts deposited by an importer for securing release of goods, from the date of deposit until the date of actual refund, holding that such interest is compensatory in nature. A Bench comprising Judicial Member S.S. Garg allowed two appeals filed by Hindustan Distributors seeking interest on refunds of Rs. 18 lakh and Rs. 27 lakh representing...

Customs Act | CESTAT Chennai Holds S.117 Penalty Cannot Be Imposed Without Finding Of Contravention

The CESTAT, Chennai has set aside the ₹4 lakh penalty imposed on Dahnay Logistics Pvt. Ltd. under Section 117 of the Customs Act, finding that there was no established contravention warranting penalty.A Bench comprising Ajayan T.V., Member (Judicial) found that 100% examination of the cargo had revealed nothing objectionable and that the documents furnished by Dahnay Logistics were not found wanting.The Tribunal held that Section 117 could not be invoked mechanically and that a penalty required...

Separately Imported Laptop LCD Panels Are Flat Panel Displays, Not Computer Parts: CESTAT Delhi

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Delhi, has held that separately imported laptop LCD panels are classifiable as flat panel display modules, rather than as parts or accessories of computers. The tribunal ruled that their intended use in laptops could not determine their classification when the goods retained their identity as separately presented display modules at the time of import.“The appellant has impressed upon his goods to be the Laptop monitors which...

Export Duty Recovery Premature Before Finalisation Of Provisional Assessment: CESTAT Chandigarh

The Chandigarh bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has set aside a ₹26.96 lakh export duty demand against S.K. Brothers. The court held that duty recovery proceedings cannot be initiated before a provisional assessment is finalised.The bench comprising Judicial Member S.S. Garg and Technical Member P. Anjani Kumar found that the rice consignments were allowed to be exported on provisional assessment while samples were being tested to determine the nature of...

One-Year Limit In 2022 Notification Inapplicable To Pre-2022 Conversion Of Shipping Bills: CESTAT Kolkata

The Kolkata bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has ruled that the one-year time limit introduced in 2022 for converting Free Shipping Bills into EPCG Shipping Bills cannot be applied to exports made before the rule came into force.The bench of Judicial Member R. Muralidhar and Technical Member K. Anpazhakan held that the time limit under the 2022 notofication has no retrospective effect. “Therefore, the time limit given therein cannot be applied for the...

Notification Prescribing Time Limit For Post-Export Shipping Bill Conversion Cannot Apply Retrospectively: CESTAT Ahmedabad

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Ahmedabad has held that a 2022 notification prescribing a time limit for post-export conversion of Shipping Bills cannot be applied retrospectively to exports made before it came into force.A coram comprising Judicial Member Somesh Arora and Technical Member Satendra Vikram Singh ruled that the notification had no application to Metalloys Recycling Ltd.'s exports made between October 2019 and January 2022.The tribunal observed,...

Customs Law Does Not Recognise 'Substantial Compliance' In Matters Of Warehousing: CESTAT Hyderabad

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Hyderabad, has recently ruled that Customs law does not recognise the concept of “substantial compliance” in warehousing. It rejected Oswal Minerals Ltd.'s argument that its imported manganese ore substantially remained under the custody of the same warehouse operator.“Customs law does not recognise the concept of “substantial compliance” in matters concerning warehousing. What the statute requires is deposit of the imported goods...

CESTAT Mumbai Holds CCSP Suspension Must Be Preventive Not Punitive, Restores ICTPL Licence

On 10 August, the Mumbai Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the power to immediately suspend a Customs Cargo Service Provider (CCSP) approval under Regulation 11(2) of the Handling of Cargo in Customs Areas Regulations, 2009 (HCCAR) is preventive and not punitive, and can be exercised only where a demonstrable and continuing threat requires immediate action. A Bench comprising Judicial Member Ajay Sharma and Technical Member A K Jyotishi set aside the...

Time Limit For Post-Decisional Hearing In Customs Broker Licence Suspension Is Mandatory: CESTAT Mumbai

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the 15-day time limit for granting a post-decisional hearing to a suspended Customs Broker is mandatory and cannot be extended by the customs authorities. A bench comprising Judicial Member Ajay Sharma and Technical Member A K Jyotishi was considering Capricorn Logistics' appeal against the order continuing its suspension. Regulation 16(2) of the Customs Broker Licensing Regulations, 2018 requires...