CESTAT New Delhi Sets Aside Duty Demand and Penalties On Ranbaxy In Ex-Works Valuation Dispute

On 24 April, the New Delhi Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) set aside the customs duty demand, invocation of the extended limitation period, and penalties imposed on Ranbaxy Laboratories Ltd. (now Sun Pharmaceutical Industries Ltd.) and customs broker Schenker India Pvt. Ltd. A Bench comprising President Justice Dilip Gupta and Technical Member P.V. Subba Rao held that although the importer incorrectly declared ex-works price as FOB value in Bills of...

CESTAT Kolkata Sets Aside IGST Demand On Tea Pruning Machine Importer, Faults Dept. For Classification Lapse

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Kolkata, has set aside an IGST demand raised on an importer functioning under Tea Spares (India) over an alleged short payment of tax on imports of tea plucking and pruning machines.It held that the department could not apply a higher rate under a residual entry without first disputing the classification opted for by the taxpayer. The tribunal observed that “the adjudicating authority has appropriately questioned the...

CESTAT Mumbai Sets Aside ₹1.19 Crore Customs Duty Demand Against Sonova Over Hearing Aid Charging Cases

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has recently set aside a customs duty demand of about Rs 1.19 crore against Sonova Hearing India Pvt. Ltd. The order also wipes out the interest liability, an equal penalty, and a redemption fine of Rs 1 crore that had been imposed in the classification dispute over imported charging cases used with hearing aids. A bench of Judicial Member Dr. Suvendu Kumar Pati, and Technical Member M.M. Parthiban held that the product described...

GOQii Fitness Bands Not Pedometers But Data Communication Devices: CESTAT Mumbai Partly Allows Revenue Appeal

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai has ruled that GOQii activity trackers and fitness bands are not just simple pedometers, but devices with a range of features including the ability to communicate data. The tribunal partly allowed the Revenue's appeal against GOQii Technologies Pvt. LtdThe order was passed by a bench of Judicial Member Dr. Suvendu Kumar Pati and Technical Member M.M. Parthiban while deciding a dispute over how these imported devices should...

CESTAT New Delhi Allows Refund Of Service Tax On Cancelled Project, Rejects Limitation Bar

The New Delhi Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) on 8 April held that authorities cannot deny refund of service tax paid on advances received for construction services on the ground of limitation, where the project is subsequently cancelled and the amounts are returned to customers. A Bench comprising Judicial Member Binu Tamta and Technical Member P.V. Subba Rao allowed the appeal filed by Reach Promoters Pvt. Ltd. and remanded the matter, holding that...

CESTAT Delhi Denies Nikon ₹7.32 Crore Refund, Holds Claim Pre-Exemption Decision Is Not Maintainable

The New Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi on 6 April, held that a refund claim filed before final adjudication of the underlying exemption dispute is not maintainable, even where duty has been paid under protest. A Bench comprising President Justice Dilip Gupta and Technical Member P.V. Subba Rao dismissed the appeal filed by Nikon India Private Limited and upheld rejection of its refund claim. The Tribunal held: “The facts of the...

Department Cannot Allege Excess Imports Without Explaining IGCR Clearance Irregularly: CESTAT New Delhi

On 10 April, the New Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that where imported goods are cleared under the IGCR procedure, the Department cannot allege excess imports without explaining how customs officers permitted such clearance. A Bench of President Justice Dilip Gupta and Technical Member P.V. Subba Rao set aside a customs duty demand of Rs. 31.40 lakh against K.A. Enterprises. They observed: “In the absence of any recording as to which of...

CESTAT New Delhi Sets Aside Penalty On Time Avenue, Finds No Link To Importer's RSP Misdeclaration

The New Delhi Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) on 10 April set aside a penalty of Rs. 20,000 imposed on Time Avenue Pvt. Ltd. under Section 112(b) of the Customs Act. A Bench comprising President Justice Dilip Gupta and Technical Member Hemambika R. Priya held that the penalty under Section 112(b) could not be sustained in the absence of proof that the appellant knew the goods were liable to confiscation. The Tribunal observed: “There is no...

CESTAT Ahmedabad Upholds Fabric Reclassification Based On CRCL Test, Remands Valuation, SEZ Exemption

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Ahmedabad Bench, has upheld the reclassification of imported synthetic fabrics, holding that laboratory test results clearly disproved the importer's declaration and rejecting a retesting plea raised after 11 years, while remanding valuation and SEZ exemption issues for fresh adjudication.A bench of Judicial Member Somesh Arora and Technical Member Satendra Vikram Singh allowed the Revenue's appeal against relief granted to Om...

AIFTA Duty Exemption For Scrap Cannot Be Denied To Jindal Aluminum For No Country of Origin Markings: CESTAT Chennai

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has recently granted relief to Jindal Aluminium Ltd., holding that exemption under the ASEAN–India Free Trade Agreement (AIFTA) cannot be denied merely due to the absence of country-of-origin markings on imported scrap goods.The Bench comprising Judicial Member Ajayan T.V. and Technical Member M. Ajit Kumar allowed the appeal filed by Jindal Aluminium Ltd. and set aside the order of the...

CESTAT New Delhi Sets Aside ₹51.8 Lakh Customs Duty On CONCOR, Finds No Proof of Pilferage Or Seal Tampering

The New Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that, in the case of CONCOR, a custodian cannot be fastened with customs duty liability under Section 45 of the Customs Act, 1962 in the absence of evidence showing pilferage during its custody or tampering of seals of imported goods. Section 45 of the Customs Act, 1962, mandates that all imported goods unloaded in a customs area remain under the custody of an approved custodian until they are...

'Suspicion, Howsoever Grave, Cannot Replace Proof': CESTAT Hyderabad Sets Aside Export Undervaluation Demand

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Hyderabad, has held that allegations of export undervaluation and demand of differential duty cannot be sustained in the absence of cogent and admissible evidence establishing receipt of additional consideration, setting aside the order against M/s Temple City Developers Pvt. Ltd. and others. The Bench comprising Judicial Member Angad Prasad and Technical Member A.K. Jyotishi observed, “While there is no denial that charges of...