'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...

Importer Not Liable For Post-Sale RSP Revision By Dealers: CESTAT New Delhi

The New Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 9 April, held that an importer cannot incur liability for differential customs duty based on a post-sale upward revision of Retail Sale Price (RSP) by independent dealers, once the parties complete the sale on a principal-to-principal basis. A Bench comprising President Dilip Gupta and Technical Member Hemambika R. Priya set aside the demand raised against Richemont India Pvt. Ltd., holding that the...

CESTAT Hyderabad Remands Iron Ore Export Valuation Dispute After AO Ignored Contract Addendum

The Hyderabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 2 April, held that the assessing authority must consider contractual modifications and supporting documents while finalizing export valuation and refund claims. A Division Bench comprising Technical Member A.K. Jyotishi and Judicial Member Angad Prasad set aside the order of the Commissioner (Appeals) and remanded the matter for fresh assessment, observing that it had failed to appreciate modifications to...

CESTAT Chennai Dismisses Western Farm Fresh Appeal, Rules Exemption Not Available For Imported Sausages

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 30 March, held that a claim for exemption under a customs notification cannot succeed when the goods are specifically excluded and prescribed conditions are not met. A Bench comprising Judicial Member P. Dinesha and Technical Member Vasa Seshagiri Rao (Technical Member) dismissed the appeal filed by Western Farm Fresh (P) Ltd. against the Department. The Tribunal stated: “We find that there is no dispute...

CESTAT Chennai Upholds Customs Duty On Imported Natural Rubber, Dismisses MRF's Appeal

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 30 March, held that the levy of Additional Duty of Customs equivalent to Rubber Cess on imported natural rubber is legally sustainable. A Bench comprising Judicial Member P. Dinesha and Technical Member Vasa Seshagiri Rao dismissed the appeal filed by MRF Limited, noting that the issue stands covered against the taxpayer by coordinate Bench and Larger Bench decisions. . The Tribunal observed: “…as on...

Boronated Calcium Nitrate Not Eligible For Concessional Duty As 'Calcium Nitrate': CESTAT Ahmedabad

On 1 April, the Ahmedabad Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) held that “Boronated Calcium Nitrate” is a distinct product from “Calcium Nitrate” and is therefore not eligible for concessional customs duty under Notification No. 50/2017-Cus. A Bench comprising Judicial Member Dr. Ajaya Krishna Vishvesha and Technical Member Satendra Vikram Singh dismissed three appeals filed by Yara Fertilizers India Pvt. Ltd., holding: “Boronated Calcium Nitrate imported...

Sub-Contractor Cannot Be Denied Customs Exemption For Non-Mention In Main Agreement: CESTAT Bangalore

The Bangalore Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) on 24 March held that exemption under Notification No. 12/2012-Cus cannot be denied to a sub-contractor merely because their name does not appear in the main concession agreement, where its role is otherwise established on record. A Bench comprising Judicial Member Dr. D.M. Misra and Technical Member Mr. Pullela Nageswara Rao observed that the condition of being a “named sub-contractor” stands satisfied if...

'Expanded Fire Clay' Qualifies As Ceramic Product Under Chapter 69 If Fired After Shaping: CESTAT Bangalore

On 24 March, the Bangalore Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that “Expanded Fire Clay Grog” is correctly classifiable as a ceramic product under Customs Tariff Heading (CTH) 6902. A Bench of Judicial Member Dr. D.M. Misra and Technical Member R. Bhagya Devi allowed the appeal filed by Saint-Gobain India Pvt. Ltd., holding that the product satisfies the essential requirement for classification under Chapter 69, namely: “fired after shaping.” The...

Vardhman Textiles Cannot Claim Customs Duty Exemption As Bills Of Entry Were Filed Before Notification: CESTAT New Delhi

Ruling that a notification granting nil customs duty on cotton imports cannot be applied to Bills of Entry filed before it came into force, the New Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has rejected Vardhman Textiles' claim for exemption.A coram comprising Judicial Member Binu Tamta and Technical Member Hemambika R. Priya dismissed the appeal filed by M/s Vardhman Textiles Ltd., affirming the order of the Commissioner (Appeals).The tribunal observed: ...

Import Value Cannot Be Re-Determined Solely Based On Local Engineer Certificate: CESTAT Chennai

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal on 25 March held that the declared value of imported second-hand machinery cannot be rejected and re-determined solely on the basis of a local Chartered Engineer's certificate. A Bench comprising Judicial Member P. Dinesha and Technical Member Vasa Seshagiri Rao allowed an appeal filed by Abirami Weaving Mills against an order of the Commissioner (Appeals), Tiruchirappalli. It held: “...we are of the view that the...

CESTAT Mumbai Allows Flipkart Appeal, Rules Re-Determination Of Import Value Unsustainable Without Evidence

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 9 March, held that re-determination of value of imported goods without proper evidence of undervaluation is unsustainable in law. A Bench comprising Judicial Member Justice S.K. Mohanty and Technical Member M.M. Parthiban allowed an appeal by Flipkart India Pvt. Ltd., which challenged the enhancement of value, confiscation of goods, and imposition of penalty by the customs authorities. The Bench stated: ...

Confiscation Cannot Survive Once Declared Transaction Value Is Accepted: CESTAT Mumbai

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 17 March, held that the confiscation of imported goods under Section 111(m) of the Customs Act cannot be sustained once the declared transaction value is accepted. A Bench comprising Judicial Member Ajay Sharma, set aside the confiscation of goods, redemption fine and penalties imposed on Kumar Impex, reasoning that once the transaction value is accepted, the allegation of undervaluation and resulting revenue...