Customs Must Follow Valuation Rules Sequentially Before Using Residual Method: CESTAT Delhi

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) at Delhi has held that customs authorities cannot invoke the residual method of valuation without first ruling out the valuation methods that precede it under the Customs Valuation Rules. The ruling resulted in most of the duty demand, confiscation, and penalties imposed on Rochees Time Pvt. Ltd. being set aside. A coram comprising Judicial Member Dr. Rachna Gupta and Technical Member P.V. Subba Rao partly allowed Rochees Time...

Customs Cannot Reassess Export Shipping Bills Or Deny DEPB Benefits After Export: CESTAT Delhi

The Principal Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), New Delhi, has held that Customs authorities cannot alter the value or description of goods after shipping bills have been assessed and exports completed. Any such change must be made through the statutory remedies available under the Customs Act. Judicial Member Dr. Rachna Gupta and Technical Member P.V. Subba Rao passed the ruling while allowing appeals filed by Mungad Strips & Alloy Pvt. Ltd. and...

Kidney Dialysis Machine Parts Attract 12% IGST Under CTH 9018, Not 18% Under Residual Entry: CESTAT Mumbai

On 23 June, the Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that parts and accessories suitable for use solely or principally with kidney dialysis machines are classifiable under Customs Tariff Heading (CTH) 9018 and attract 12% Integrated Goods and Services Tax (IGST), and not 18% IGST under the residual tariff entry CTH 9033. Technical Member M.M. Parthiban and Judicial Member Ajay Sharma allowed the appeal filed by Baxter (India) Private Limited and...

CESTAT Kolkata Sets Aside Confiscation Of 3.65 Kg Gold After Jeweller Produces GST, Purchase Records

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Kolkata, has set aside the confiscation of more than 3.65 kg of gold claimed by a Meerut jeweller. The tribunal held that records produced by the claimants showed the gold had been procured on payment of GST and accounted for in the firm's books. A bench of Judicial Member Ashok Jindal and Technical Member K. Anpazhakan allowed appeals filed by Akhil Maheshwari, Anil Kumar Yadav and Nikhil Maheshwari. The bench also directed the...

CESTAT Kolkata Quashes ₹40 Lakh Penalty on Generator Set Importer, Says Delayed Action Cannot Prevent Pollution

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) in Kolkata has set aside ₹40 lakh in penalties imposed on a Kolkata-based importer of kerosene generator sets. The tribunal observed that the show cause notice was issued long after the goods had been cleared and sold in the market. A Bench of Judicial Member R. Muralidhar and Technical Member Rajeev Tandon noted that even if the imports were assumed to have resulted in the clearance of polluting generator sets, issuing a show...

DGFT Public Notice Cannot Impose Actual User Condition On Transferable DFIA Imports: CESTAT Kolkata

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Kolkata, has held that an actual user condition imposed through a DGFT public notice cannot be enforced against imports made under a transferable Duty Free Import Authorization (DFIA). The tribunal ruled that the DFIA in question had been issued on a post-export basis. Judicial Member Ashok Jindal and Technical Member K. Anpazhakan observed that the condition was not binding on Global Exim, which had claimed exemption from basic...

Late Fee On Supplementary Bills Of Entry Cannot Be Imposed In A Routine Manner: CESTAT Kolkata

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) at Kolkata has recently observed that late fees for delayed filing of Bills of Entry must not be imposed routinely where the delay is not attributable to the importer. A Bench of Judicial Member R. Muralidhar and Technical Member Rajeev Tandon set aside late fees levied on Agarwal Coal Corporation Pvt. Ltd. in six appeals arising from supplementary Bills of Entry filed for excess quantities of imported coal. "Late fee chargeable...

CESTAT Chennai Quashes Customs Duty Demand Over Inadmissible Electronic Evidence

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has recently set aside customs duty demands of over ₹11.24 crore raised against importers of lighting fixtures and allied goods from China.The tribunal found that the Revenue's allegation of undervaluation rested on unverified electronic data and uncorroborated statements. A bench of Judicial Member P. Dinesha and Technical Member Vasa Seshagiri Rao allowed appeals filed by Suraj Impex, Spark Lites and Shri...

CESTAT Mumbai Grants Customs Exemption On Re-Imported Buffalo Meat, Quashes ₹45.82 Crore Demand

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has set aside a customs duty demand of ₹45.82 crore, a redemption fine of ₹6 crore and penalties imposed on a Mumbai-based exporter of frozen buffalo meat. The case concerned the re-import of meat that had earlier been exported and was subsequently brought back into India before being processed and re-exported. A Bench of Judicial Member S.K. Mohanty and Technical Member M.M. Parthiban held that Allanasons...

CESTAT Mumbai Quashes Continued Suspension Of Nhava Sheva CFS, Notes No Inquiry Was Initiated

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) at Mumbai has set aside an order continuing the suspension of a Container Freight Station (CFS) operated by International Cargo Terminal Private Limited (ICTPL) at Nhava Sheva. The tribunal held that Customs authorities had not substantiated the grounds for continuing the immediate suspension. A bench of Judicial Member S.K. Mohanty and Technical Member M.M. Parthiban observed: "In view of the above, we set aside the order dated...

Customs Cannot Reclassify Dolomite as Marble Based on Other Importers' Test Reports: CESTAT Mumbai

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 8 June held that customs authorities cannot reclassify imported goods as marble blocks by relying on test reports of consignments imported by other entities when laboratory reports of the importer's own goods classify them as dolomite. Judicial Member S.K. Mohanty and Technical Member M.M. Parthiban allowed the appeals filed by Shri Parasnath Exports and its partner Sampat Ostwal against the order passed by...

CESTAT Mumbai Bars Customs From Rejecting Declared Value, Upholds Relief For Adani Entities

On 5 June, the Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that customs authorities cannot reject the declared transaction value of imported goods when they rely on allegations of overvaluation arising from the same Directorate of Revenue Intelligence (DRI) investigation and evidence that earlier proceedings had already rejected and the Supreme Court had affirmed. President Justice Dilip Gupta and Technical Member P. Anjani Kumar dismissed six appeals...