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...

Missing Shipping Bills Cannot Deny IGST Refund For Bhutan Exports: CESTAT Kolkata

On 10 August, the Kolkata Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that failure to file Shipping Bills for exports to Bhutan, particularly during the initial implementation of the Goods and Services Tax (GST) regime, could not justify denial of Integrated Goods and Services Tax (IGST) refund where the actual export of goods and payment of IGST were undisputed. A Single Member Bench comprising Justice (Retd.) R. Muralidhar set aside the rejection of refund and Rs. 1 lakh...

Customs Duty Exemption On Flavour Compound Cannot Be Denied On Alcohol Content Alone: CESTAT Bengaluru

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Bengaluru, has held that a customs duty exemption claimed on imported flavour compounds cannot be denied without establishing that the goods fall within the exclusion for compound alcoholic preparations of a kind used for the manufacture of beverages.The revenue must prove that the goods satisfy the exclusion. A bench comprising Judicial Member P.A. Augustian and Technical Member R. Bhagya Devi refering to a 2002 notification...

Registration In Exporting Country Before Import Does Not Make Vehicle Used: CESTAT Chennai

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Chennai, has held that a vehicle does not lose its eligibility for concessional customs duty available for new vehicles merely because it was temporarily registered in the country of export, so long as there is no evidence that it was actually used before being exported to India.The revenue must establish that the vehicle was actually used before it was exported to India.“Mere registration of a motor vehicle in the exporting...

LED Modules Imported For Street Lights Attract 10% Customs Duty, Not 20% As Lamp Parts: CESTAT Delhi

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), New Delhi has held that LED modules imported for manufacturing street lights cannot be classified as parts of lamps and lighting fittings merely because they are intended for use in street lights.A coram comprising Officiating President Dr. Rachna Gupta and Technical Member Hemambika R. Priya observed that while street lights are covered under the category for lamps and lighting fittings, “the usage/utility of the imported goods...

CESTAT Delhi Sets Aside ₹3.77 Crore Penalty Against Maruti Suzuki In Customs Classification Dispute

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), New Delhi, has set aside a ₹3.77 crore penalty imposed on Maruti Suzuki India Ltd. over the classification of imported Glow Plug Control Units (GCUs).It held that customs authorities had accepted the company's classification of imported Glow Plug Control Units (GCUs) since 2015. The tribunal, however, ruled that the products are classifiable as components of electrical ignition or engine-starting equipment used in diesel engines. ...

Unauthenticated Foreign Authority Documents Can't Be Conclusive Proof In Customs Proceedings: CESTAT Chandigarh

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chandigarh has set aside a ₹4.95 crore customs duty demand against Findoc Impex, holding that unauthenticated documents allegedly obtained from the UAE Customs authorities could not, by themselves, establish that dry dates imported into India were of Pakistani origin. Emphasising that the burden rested on the Revenue to prove its allegations, the tribunal observed, "It is not for the appellant to disprove the allegations of the...

Cut Umbrella Panels Treated As Made-Up Textile Articles, Not Woven Fabric For Tax: CESTAT Kolkata

The Kolkata Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 4 August held that umbrella panel fabric cut into predetermined triangular shapes and sizes is classifiable as a “made-up textile article” under Customs Tariff Heading (CTH) 6307 and not as woven fabric of synthetic filament yarn under CTH 5407. A Bench comprising Judicial Member Justice R. Muralidhar and Technical Member K. Anpazhakan set aside the demand of differential customs duty, interest and penalty, holding that...

Excess Quantity, Enhanced Value Alone Don't Establish Misdeclaration Under Customs Act: CESTAT Mumbai

The Mumbai bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has ruled that finding excess imported goods during examination, even when their assessable value is enhanced, does not by itself establish misdeclaration under the Customs Act, 1962. Technical Member M.M. Parthiban observed that the department had produced no evidence to show the importer had ordered or suppressed the excess quantity of goods, and held that confiscation, redemption fine and penalty could not be...