Importer Cannot Contest Customs Reassessment After Accepting Enhanced Value: CESTAT Delhi

The Principal Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi, has dismissed an importer's challenge to enhancement of customs value after finding that it had accepted the revised valuation, paid duty, and cleared the goods without protest. A bench of President Justice Dilip Gupta and Technical Member P.V. Subba Rao distinguished the Delhi High Court's ruling in Niraj Silk Mills, where the importer had consistently protested the reassessment and sought...

CESTAT Delhi Holds GE Vernova's Imported Products Are Relays, Not Multifunctional Devices

The Principal Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi has held that four imported products of GE Vernova T&D India Ltd., including relay products with additional monitoring, data logging and alarm features, remain classifiable as “relays.” The tribunal held that their principal function continues to be protection and control of electrical systems. A bench of President Justice Dilip Gupta and Technical Member P.V. Subba Rao partly allowed...

CESTAT Ahmedabad Sets Aside CVD Demand On Imports Made Under Advance Authorisation During Transitional Period

The Ahmedabad Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) has allowed appeals filed by Ratnaveer Stainless Products Pvt. Ltd., its director and a customs broker. The dispute concerned Countervailing Duty (CVD) liability on imports made under Advance Authorisation between September 7, 2017 and October 12, 2017. A bench of Judicial Member Dr. Ajaya Krishna Vishvesha and Technical Member Satendra Vikram Singh passed the order. Holding that the issue was “no more...

'Orchestrated Attempt' To Misuse Gold Export Promotion Scheme: CESTAT Chennai Upholds Customs Act Penalties

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 8 May upheld penalties against exporters, customs brokers and a customs officer in a case involving the alleged export of gold-plated copper jewellery as “22 carat gold jewellery” to fraudulently divert duty-free imported gold under an export promotion scheme. Judicial Member P. Dinesha and Technical Member Vasa Seshagiri Rao noted that the customs broker and its personnel facilitated examination of...

CESTAT Allahabad Holds Department Must Prove RMC Manufacture Before Levying Excise Duty On Concrete Mix

The Allahabad Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) on 14 May held that concrete mix manufactured and consumed at construction sites for residential projects qualifies for exemption from central excise duty and cannot be classified as “Ready Mix Concrete” (RMC) without technical evidence establishing the characteristics of RMC manufacturing. Judicial Member P.K. Choudhary and Technical Member Rajeev Tandon held that the Department failed to prove that...

Licence Fee, Technical Assistance Charges Not Part Of Customs Value Unless Condition Of Sale: CESTAT Delhi

The Principal Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi has held that licence fees, engineering package charges, and technical assistance payments cannot be added to the assessable value of imported equipment where they are separately contracted and are not a condition of sale. A bench of Judicial Member Binu Tamta and Technical Member P.V. Subba Rao observed, “Law has been settled that once separate prices are provided for the supply of technical...

CESTAT Delhi Holds Glucometers Are Instruments For Chemical Analysis, Not Medical Diagnostic Devices

The Principal Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi, has allowed Aspen Diagnostics Pvt. Ltd.'s appeal against the customs department's attempt to reclassify its imported diagnostic devices, including glucometers, from instruments for chemical analysis to medical diagnostic instruments. The tribunal set aside the differential duty demand and penalties. A bench of Judicial Member Ashok Jindal and Technical Member K. Anpazhakan held that the issue...

CESTAT New Delhi Quashes Duty Demand On Ismartu India, Holds CKD/SKD Reclassification Not Established

The New Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 18 May set aside the customs duty demand, confiscation order and penalty imposed on Ismartu India Pvt. Ltd., holding that the Department failed to establish that the imported goods were complete mobile phones in CKD/SKD condition. President Justice Dilip Gupta and Technical Member P. Anjani Kumar reiterated that imported goods can be reclassified as finished articles under Rule 2(a) of the General Rules...

CESTAT Hyderabad Upholds ₹20 Lakh Penalty On Hong Kong Firm Director, Rejects Extra-Territoriality Defence

The Hyderabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 15 May upheld a penalty of Rs. 20 lakh imposed on Ashok Kharey, director of Hong Kong based Maxx Access Ltd., holding that foreign nationals can be penalised under the Customs Act where their conduct has a direct nexus with customs fraud and duty evasion in India. Technical Member A.K. Jyotishi and Judicial Member Angad Prasad dismissed Kharey's appeal, observing: "Once manipulated invoices were knowingly...

CESTAT Ahmedabad Remands Customs Dispute Over Imported Goods' Classification As Thinner Or Solvent

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Ahmedabad, has remanded a customs classification dispute involving imported petrochemical products. It found that the available laboratory reports did not conclusively establish whether the goods were general-purpose paint thinners or restricted petroleum hydrocarbon solvents. A bench of Judicial Member Dr. Ajaya Krishna Vishvesha and Technical Member Satendra Vikram Singh held that fresh testing was necessary. The bench...

CESTAT New Delhi Sets Aside ₹25 Lakh Customs Demand Against Vanesa Cosmetics In Classification Dispute

The New Delhi Principal Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 18 May set aside customs duty demands exceeding Rs. 25 lakh against Vanesa Cosmetics Pvt. Ltd. holding that customs authorities cannot invoke the extended limitation period under the Customs Act merely because they disagree with the tariff classification adopted by the importer. President Justice Dilip Gupta and Technical Member P. Anjani Kumar allowed the company's appeal against an order passed...

CESTAT Mumbai Upholds Interest On Delayed Refund Of ₹21.17 Crore Extra Duty Deposit To JSW Steel

The Mumbai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that Customs cannot deny interest on the delayed refund of ₹21.17 crore paid as Extra Duty Deposit merely because Bills of Entry remained pending finalisation on unrelated issues.The tribunal observed that “under no circumstances can the respondents be made liable for the delay on the part of the Department, which fact has also been taken cognizance in the impugned order by the learned Commissioner...