No Countervailing Duty On Silk Fabrics Imported In 2012–13: CESTAT Chennai

The Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) clarified that countervailing duty (CVD) cannot be levied on imported silk fabrics during 2012–2013, when excise duty on such fabrics was fully exempt under the relevant notification. Further that customs proceedings are deemed concluded once duty and interest are paid before a show-cause notice is issued. A Bench comprising Judicial Member P. Dinesha and Technical Member Vasa Seshagiri Rao set aside the...

Parts Used For Intelligent Manual Transmission Not Clutch Parts, CESTAT Rules In Hyundai Transys' Favour

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that auto parts imported by Hyundai Transys India Private Limited for use in intelligent manual transmission vehicles were wrongly classified by customs authorities, leading to unsustainable duty demands. A bench of Judicial Member P. Dinesha and Technical Member Vasa Seshagiri Rao ruled that the actuator assembly and tube connector assembly used in iMT vehicles cannot be treated as “clutches and parts...

CESTAT Mumbai Sets Aside Service Tax Demand Based Only On Service Tax–Income Tax Return Mismatch

The Mumbai bench of the Customs, Excise, and Service Tax Appellate Tribunal has set aside a service tax demand that was raised on the basis of a mismatch between income tax returns and ST-3 returns (half-yearly service tax returns filed under the pre-GST regime). The tribunal noted that the demand was confirmed without proper service of notice and without giving the taxpayer an opportunity of hearing The appeal was decided by Technical Member M.M. Parthiban. The tribunal found that the...

Chilly Seeds Imported For Sowing Cannot Be Classified As 'Spices': CESTAT

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) at New Delhi has held that chilly seeds imported exclusively for sowing cannot be treated as “spices” under the Customs Tariff and must instead be classified as seeds used for sowing under Chapter 12. A coram led by President Justice Dilip Gupta and Technical Member Hemambika R. Priya set aside a 2016 order of the Commissioner (Appeals) that had upheld a higher duty on such imports. For context, spices attract a 70% basic...

CESTAT Delhi Allows Importer To Claim Tax-Free Imports From Least Developed Countries Despite Licence Terms

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that Customs authorities cannot deny duty-free benefits available to imports from Least Developed Countries merely because an import licence issued by the Directorate General of Foreign Trade refers to a separate concessional duty notification. A coram of President Justice Dilip Gupta and Technical Member P.V. Subba Rao set aside a customs duty demand, along with interest, penalty, and redemption fine,...

CESTAT Mumbai Reiterates 10% Customs Duty Benefit On Enterprise Ethernet Switches

Reiterating that customs authorities cannot deny a concessional duty without objective evidence, the Mumbai bench of the Customs, Excise and Service Tax Appellate Tribunal has allowed Digisol Systems' appeal and extended the benefit of 10% customs duty on imported enterprise Ethernet switches and transceivers.A bench comprising Judicial Member S.K. Mohanty and Technical Member M.M. Prathiban was hearing an appeal filed by Digisol Systems, a provider of IT networking solutions and consultancy...

Belated Detection Of Importer's Misuse Of Duty-Free Imports Cannot Be Attributed To Customs Broker: CESTAT

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal has set aside the revocation of the Customs Broker licence of Aggressive Shipping & Logistics Pvt. Ltd. It held that diversion or misuse of duty-free imports by an importer, detected later by the Directorate of Revenue Intelligence (DRI), cannot automatically be attributed to the Customs Broker. A coram of Judicial Member S K Mohanty and Technical Member M.M. Parthiban was hearing an appeal against an order of the...

Customs | Goods Cannot Be Confiscated Solely On Local Market Survey/Opinion Without Proof Of Smuggling: CESTAT Allahabad

The Allahabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that goods cannot be confiscated merely on the basis of a local market survey or opinion in the absence of proof of smuggling. The Tribunal observed that the burden to prove that the goods are smuggled lies on the department.P.K. Choudhary (Judicial Member) stated that the Department has not discharged its burden. Since betel nuts are also produced in India. In the absence of any evidence that confiscated...

Customs | Knitted Ready-Made Garments Fall Under CTH 6102, 10% Drawback Rate Applicable: CESTAT Kolkata

The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that knitted ready-made garments, such as Gents' shirts, Ladies' dresses, and coats, are classifiable under CTH 6102; hence, the exporters are entitled to a 10% drawback rate subject to a maximum of Rs. 45/- per piece. R. Muralidhar (Judicial Member) and K. Anpazhakan (Technical Member) stated that from the descriptions of the goods as contained in the concerned shipping bills, it can be...

Customs Act | 'Prohibition Includes Restriction': CESTAT Chennai Holds S.111(d) Covers Both Complete & Partial Restricted Imports

The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) held that under Section 111(d) of the Customs Act, the term 'prohibition' includes both complete and partial restrictions under the Foreign Trade Policy. Hence, restricted goods imported without fulfilling mandatory conditions are treated as prohibited, which attracts confiscation and a penalty. Section 111(d) of the Customs Act, 1962, makes goods liable for confiscation if they are imported, or attempted...

Customs Brokers Regulations | Broker Cannot Be Penalised Solely For Exporter's Misdeclaration: CESTAT Principal Bench

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Principal Bench, New Delhi, has set aside the revocation of a Customs Broker licence, holding that mis-declaration of goods by the exporter, by itself, does not establish violation of obligations under the Customs Broker Licensing Regulations (CBLR), 2018. A Bench comprising Justice Dilip Gupta (President) and P.V. Subba Rao (Member – Technical) allowed the appeal filed by the assesse, M/s Silver Line Global Freight Pvt....

Customs | Direct Reliance On NIDB Data For Re-Assessment Of Import Value Not Permissible: CESTAT Kolkata

The Kolkata Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that Customs cannot directly rely on NIDB (National Import Database) data to enhance import value. R. Muralidhar (Judicial Member) and K. Anpazhakan (Technical Member) noted that the adjudicating authority straightaway has re-determined the value on the basis of NIDB data retrieved, indicating the Bill of Entry and the description of the goods, which is legally not maintainable. In the...