CESTAT Sets Aside Customs Broker Licence Revocation, Cites Contradictory Findings

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT) at Mumbai recently set aside the revocation of a Customs Broker licence after finding that the adjudicating authority recorded contradictory findings. A bench of Judicial Member S.K. Mohanty and Technical Member M.M. Parthiban allowed the appeal filed by Fairdeal Shipping Agency Pvt. Ltd. against the order of the Principal Commissioner of Customs (General), Mumbai. “Such apparent contradiction in the findings of the...

CESTAT New Delhi Sets Aside Duty Demand Of Criticallog India, Holds BIS Not Required For Spare Parts

On Wednesday 18 February, the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi, set aside the duty demand, confiscation, and penalties that the authorities imposed on Criticallog India Pvt. Ltd. for imported “Memory” and “Power Supply” items. The Tribunal held that a BIS registration does not apply to spare parts imported for warranty replacement. A Bench comprising President Justice Dilip Gupta and Technical Member Ms. Hemambika R. Priya, ruled that the appellate...

Statements Recorded During Customs Probe Cannot Be Relied Upon Without Examining Witness Before Authority: CESTAT Delhi

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) at Delhi has recently set aside penalties of Rs 25 lakh each imposed on Committed Logistics Pvt. Ltd. and its Director Vikas Chaudhary, holding that statements recorded by customs officers cannot be treated as relevant evidence unless the mandatory procedure under the law is followed. A coram of President Justice Dilip Gupta, and Member P.V. Subba Rao held that the penalties were imposed solely on the basis of statements recorded...

CESTAT Sets Aside Penalty On Customs Broker, Says CHALR Violation Alone Insufficient

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi, has set aside a penalty imposed on a Customs Broker under Section 112(a)(i) of the Customs Act, holding that mere violation of the Customs House Agents Licensing Regulations, 2004 (CHALR) cannot by itself justify penalty under the Act in the absence of specific allegations and material showing knowledge. A coram of President Justice Dilip Gupta and Technical Member P.V. Subba Rao allowed the appeal filed by Cargo...

CESTAT Chennai Holds Software Part Of Hardware Value, Reduces Duty Demand On Wipro

The Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the value of software supplied along with imported networking equipment by Wipro (Infotech Group) is includible in the assessable value of the hardware for the purpose of levying customs duty.The Bench, comprising Judicial Member P. Dinesha and Technical Member Vasa Seshagiri Rao, partly allowed the appeal by restricting the demand to the normal period of limitation, while setting aside the...

CESTAT Mumbai Sets Aside Rs. 63.36 Lakh IGST Demand On Quality Systems, Confirms Tax At 12%

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 13 February set aside a demand of Rs. 63.36 lakh towards differential IGST on parts of poultry-keeping machinery, holding that payment of GST at 12% by Quality Systems and Equipments Pvt. Ltd. was proper in view of subsequent CBIC clarifications. A Bench comprising Dr. Suvendu Kumar Pati (Judicial Member) and Mr. M.M. Parthiban (Technical Member) allowed the appeal filed by the company against the...

CESTAT Allows Nil Basic Customs Duty On Sterling Silver Jewellery Imported From Thailand

The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) recently allowed a jeweller to claim nil basic customs duty on sterling silver jewellery imported from Thailand, ruling that customs authorities were wrong to deny the benefit just because the importer did not provide some information. Nil basic customs duty refers to zero customs duty payable on certain imports under applicable trade agreements. A Bench comprising Judicial Member Dr. Rachna Gupta was...

Bulk Imported Nutraceutical Ingredients Cannot Be Classified As "Edible Preparations": CESTAT Delhi

The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that nutraceutical ingredients imported in bulk cannot be classified as “edible preparations” and therefore do not attract a higher customs duty. The Bench, comprising President Justice Dilip Gupta and Technical Member Hemambika R. Priya, set aside a customs duty demand of Rs. 7 crore raised against Sundyota Numandis Probioceutical Private Limited on allegations of misclassification of imported...

CESTAT Delhi Denies Customs Exemption For IMFA Helicopter Used In Non-Revenue Flights

The Customs, Excise and Service Tax Appellate Tribunal at New Delhi has reiterated that non-revenue flights cannot qualify as air transport services for customs duty exemption. “Flight service for no remuneration at all would not qualify to be considered as air transport service,” the tribunal noted, relying on the Delhi High Court's ruling in East India Hotels Ltd. while examining the use of an imported helicopter. A Bench of President Justice Dilip Gupta and Technical Member Hemambika R....

HAL Fire Extinguishers In Su30MKI Jets Are Integral Aircraft Parts Exempt From Duty: CESTAT Delhi

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that fire extinguishers installed by Hindustan Aeronautics Limited (HAL) in Su30MKI fighter jets qualify as integral aircraft parts and cannot be treated as stand-alone safety equipment to deny customs duty exemption. A Bench comprising Judicial Member Binu Tamta and Technical Member Hemambika R. Priya, on 9 January 2026, set aside the differential customs duty demand of Rs. 92 lakh against HAL . ...

Customs Cannot Arrogate Powers Under FEMA To Confiscate Currency Or Travel Cards: CESTAT Delhi

The New Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that customs officers cannot arrogate powers under the Foreign Exchange Management Act (FEMA), 1999, to confiscate currency or travel cards under the Customs Act, 1962. A Bench comprising Judicial Member Ajay Sharma and Technical Member C J Mathew observed that while customs officers have the authority to intercept and seize currency at airports, they cannot adjudicate matters under the Customs Act...

Using Corporate Helicopter For Private Flights Breaches Customs Exemption: CESTAT New Delhi

The New Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the private and non-revenue use of a helicopter imported by a corporate entity defeats the basis of the customs duty exemption granted for non-scheduled passenger or charter services. A Bench comprising President Justice Dilip Gupta and Technical Member Hemambika R. Priya examined a batch of cross-appeals filed by Indian Metal and Ferro Alloys Limited (IMFA) and the Customs Department against...