DGFT Public Notice Cannot Impose Actual User Condition On Transferable DFIA Imports: CESTAT Kolkata

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Kolkata, has held that an actual user condition imposed through a DGFT public notice cannot be enforced against imports made under a transferable Duty Free Import Authorization (DFIA). The tribunal ruled that the DFIA in question had been issued on a post-export basis. Judicial Member Ashok Jindal and Technical Member K. Anpazhakan observed that the condition was not binding on Global Exim, which had claimed exemption from basic...

Late Fee On Supplementary Bills Of Entry Cannot Be Imposed In A Routine Manner: CESTAT Kolkata

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) at Kolkata has recently observed that late fees for delayed filing of Bills of Entry must not be imposed routinely where the delay is not attributable to the importer. A Bench of Judicial Member R. Muralidhar and Technical Member Rajeev Tandon set aside late fees levied on Agarwal Coal Corporation Pvt. Ltd. in six appeals arising from supplementary Bills of Entry filed for excess quantities of imported coal. "Late fee chargeable...

CESTAT Chennai Quashes Customs Duty Demand Over Inadmissible Electronic Evidence

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has recently set aside customs duty demands of over ₹11.24 crore raised against importers of lighting fixtures and allied goods from China.The tribunal found that the Revenue's allegation of undervaluation rested on unverified electronic data and uncorroborated statements. A bench of Judicial Member P. Dinesha and Technical Member Vasa Seshagiri Rao allowed appeals filed by Suraj Impex, Spark Lites and Shri...

CESTAT Mumbai Grants Customs Exemption On Re-Imported Buffalo Meat, Quashes ₹45.82 Crore Demand

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has set aside a customs duty demand of ₹45.82 crore, a redemption fine of ₹6 crore and penalties imposed on a Mumbai-based exporter of frozen buffalo meat. The case concerned the re-import of meat that had earlier been exported and was subsequently brought back into India before being processed and re-exported. A Bench of Judicial Member S.K. Mohanty and Technical Member M.M. Parthiban held that Allanasons...

CESTAT Mumbai Quashes Continued Suspension Of Nhava Sheva CFS, Notes No Inquiry Was Initiated

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) at Mumbai has set aside an order continuing the suspension of a Container Freight Station (CFS) operated by International Cargo Terminal Private Limited (ICTPL) at Nhava Sheva. The tribunal held that Customs authorities had not substantiated the grounds for continuing the immediate suspension. A bench of Judicial Member S.K. Mohanty and Technical Member M.M. Parthiban observed: "In view of the above, we set aside the order dated...

Customs Cannot Reclassify Dolomite as Marble Based on Other Importers' Test Reports: CESTAT Mumbai

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 8 June held that customs authorities cannot reclassify imported goods as marble blocks by relying on test reports of consignments imported by other entities when laboratory reports of the importer's own goods classify them as dolomite. Judicial Member S.K. Mohanty and Technical Member M.M. Parthiban allowed the appeals filed by Shri Parasnath Exports and its partner Sampat Ostwal against the order passed by...

CESTAT Mumbai Bars Customs From Rejecting Declared Value, Upholds Relief For Adani Entities

On 5 June, the Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that customs authorities cannot reject the declared transaction value of imported goods when they rely on allegations of overvaluation arising from the same Directorate of Revenue Intelligence (DRI) investigation and evidence that earlier proceedings had already rejected and the Supreme Court had affirmed. President Justice Dilip Gupta and Technical Member P. Anjani Kumar dismissed six appeals...

CESTAT Delhi Holds Importer Entitled To PCBA Exemption Under 2005 Customs Notification, Sets Aside Duty Demand

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi, has recently set aside a customs duty demand of ₹1.14 crore against Magic Mike Enterprises Pvt. Ltd. A Bench of President Justice Dilip Gupta and Technical Member P.V. Subba Rao held that the company was entitled to an exemption under a 2005 customs notification for certain printed circuit board assemblies (PCBAs), as the imported goods were not used to manufacture the categories of telecom and networking products...

Procedural Defects In Invoices Cannot Defeat SAD Refund Entitlement: CESTAT Chennai

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai, has allowed an appeal filed by Cape Electric Corporation and set aside orders rejecting Special Additional Duty (SAD) refund claims of ₹18.82 lakh. The claims arose from imported goods that were subsequently sold in the domestic market on payment of VAT. The Division Bench of Judicial Member Ajayan T.V. and Technical Member Vasa Seshagiri Rao held that the department could not deny the refund claims on the basis of...

CESTAT Delhi Sets Aside Redemption Fine In Ketamine Export Case As Goods Not Available For Confiscation

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi, has set aside a redemption fine imposed in connection with the export of ketamine to China after holding that the goods had already been exported and were no longer available for confiscation. Technical Member Rajeev Tandon partly allowed the appeal. He, however, upheld the appellant's liability for his role in the export operation and reduced the penalty imposed on him to ₹5 lakh. The Tribunal held, “The fact...

CESTAT New Delhi Sets Aside ₹1.44 Crore Customs Duty Demand Against Bharti Gems, PP Jewellers

On 3 June, the New Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) set aside a customs duty demand of Rs.1.44 crore, along with confiscation of goods and penalties imposed on P P Jewellers & Diamonds Pvt. Ltd., Bharti Gems, Its My Name Pvt. Ltd. and related parties, holding that the Customs Department failed to prove diversion of duty-free imported gold and silver or any fraudulent export activity. President Justice Dilip Gupta and Technical Member P.V. Subba...

CESTAT Mumbai Upholds Duty Exemption On Edible-Grade Oils Imported For Cosmetic, Pharmaceutical Use

The Mumbai Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) has dismissed a Revenue appeal challenging customs duty exemption granted to Pioma Chemicals on imports of refined peanut oil, sunflower oil, walnut oil, almond oil and macadamia nut oil. The tribunal held that the benefit could not be denied on the ground that the oils were intended for use in cosmetic and pharmaceutical products. A bench of Judicial Member Dr. Suvendu Kumar Pati and Technical Member M.M....