Purchase Of ATM within India: CESTAT Deletes Penalty Under Customs Act Against CitiBank

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has deleted the penalty under the Customs Act against CitiBank on the purchase of an ATM within India.The two-member bench of Suvendu Kumar Pati (Judicial Member) and Sanjeev Shrivastava (Accountant Member) has observed that a transaction concerning the purchase of an item within India, which is unrelated to its importation and to the importer as the transaction is confined between the Appellant Citibank and...

External Hard Disk Drives Eligible For Concessional Rate Of Additional Customs Duty: CESTAT

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has reiterated that import of external/portable hard disk drives are eligible for concessional rate of additional customs duty, as provided under Notification No. 6/2006-CE, dated 1st March 2006, and Notification No. 12/2012-CE, dated 17th March 2012. Referring to the various judgments passed by the CESTAT, the bench of Ajay Sharma (Judicial Member) and C J Mathew (Technical Member) observed that...

Denying The Customs Duty Exemption Despite The Valid Country Of Origin Certificate Is Not Sustainable: CESTAT

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that denying the benefit of customs duty exemption despite the valid country of origin certificate is not sustainable.The bench of Rachna Gupta (Judicial Member) has noted that it will hinder the free flow of trade between agreeing nations if the exemption requested under the applicable rules is denied on one or the other pretext, especially if it is based only on assumptions and presumptions.The...

No Liability On Vivo To Pay Customs Duty On Import Of Microphones Forming Part Of Mobile Phones: CESTAT

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that Vivo is not liable to pay customs duty on the import of microphones as they form a part of cellular mobile phones.The two-member bench of Rachna Gupta (Judicial member) and P. Venkata Subba Rao (Technical Member) has observed that only 10% of customs duty is being imposed upon such goods which are part of cellular mobile phones, except for microphones/wired headsets/receivers.The appellant/assessee,...

Customs Broker Is Responsible For Acts Of The Employees: CESTAT

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that for the act of an employee, direct responsibility is fixed on the customs broker.The bench of Dr. Suvendu Kumar Pati (Judicial Member) has confirmed the penalty and relied on para 13(12) of the CHA Licencing Regulation, 2004 which says, "the customs broker shall exercise such supervision as may be necessary to ensure proper conduct of his employees in the transaction of business and he shall be held...

Basic Customs Duty Exemption On Import Of Colour Data Projectors: CESTAT

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the import of colour data projectors is exempted from basic customs duty.The two-member bench of Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) has observed that for the period prior to 01.01.2017, all goods falling under CTSH 8528 41, 8528 51, or 8528 61 were unconditionally exempted from payment of Basic Customs Duty under Serial No. 17 of the exemption notification. Post...

Customs Duty Exemption On Imported WAP: CESTAT

The Delhi bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that imported WAP is entitled to an exemption from the whole of the customs duties under the ITA.The two-member bench of Justice Dilip Kumar (President) and P.V. Subba Rao (Technical Member) has observed that imported WAP is a networking equipment working on LAN, connecting Wi-fi enabled devices such as laptops, smartphones, tablets, etc. to a wired network. The appellant/Commissioner of Customs...

Amount Deposited Voluntarily During Investigation Can't Be Treated As Amount Towards Pre-Deposit: CESTAT

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the amount deposited voluntarily during an investigation cannot be treated as an amount towards the pre-deposit as it was not an amount deposited at the time of the filing of the appeal.The two-member bench of Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) has observed that the appellant/assessee could not have asked for the refund of the amount deposited by the...

CESTAT Allows Interest On Custom Duty Refund From Deposit Date To Refund Date

The Delhi Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has allowed the 12% interest on custom duty refund from the deposit date to the refund date.The bench of Anil Choudhary (Judicial Member) has observed that the amount of deposit made during investigation or audit becomes pre-deposit ipso facto upon contest of the dispute or filing of the appeal, and the assessee is entitled to interest as per law from the date of deposit till the date of refund. The ...

No Penalty Can Be Imposed For Introducing The Importer To IEC Holder: CESTAT

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that a penalty cannot be imposed for introducing the importer to the Importer-Exporter Code (IEC) holder.The bench of Anil Chaudhary (Judicial Member) has observed that no penalty can be imposed without proving the role of the person being charged. The appellant/assessee is working as a clearing agent of imported goods but does not have any CHA/CB licence. Until 2007, the appellant had dealings...

Refractories Meant For Re-lining Of Furnaces Is Covered Under "Capital Goods": CESTAT Allows Customs Duty Exemption Under EPCG Scheme

The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has allowed the customs duty exemption on refractories meant for re-lining of furnaces.The two-member bench of P.K. Chaudhary (Judicial Member) and P. Anjani Kumar (Technical Member) has observed that refractories meant for re-lining of furnaces, i.e., for replacement, are covered by the "means" part of the definition of "capital goods". It is in any way restricted or controlled by the use of the...

No Customs Duty On Spare Parts Supplied For Warship: CESTAT

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the spare parts supplied for warships are exempt from customs duty.The two-member bench of Ramesh Nair (Judicial Member) and Raju (Technical Member) has observed that the interceptor boat supplied by the appellant was a warship. The intercepted boats used by the Coast Guard Ministry of Defence Government of India are only for the security of the coastal border of the country and the boats...