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Author: Aadrikaa Legal Services (ALS)

  • PayTM gets Duty benefits and Penalty waiver relief from CESTAT

    PayTM gets Duty benefits and Penalty waiver relief from CESTAT

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 14.08.2025

    PayTM gets Duty benefits and Penalty waiver relief from CESTAT

    The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) recently delivered a significant judgment in the case of One97 Communications Limited (Paytm) regarding the import of Paytm Soundbox Versions 1 and 2. The case revolved around whether these devices were eligible for a concessional rate of Basic Customs Duty (BCD) under Serial No. ​ 20 of Notification No. ​ 57/2017. This blog delves into the details of the case, the arguments presented, and the final decision.

    Background of the Case

    One97 Communications Limited, the parent company of Paytm, imported Paytm Soundbox devices between 2019 and 2022. These devices are portable audio-activated smart devices that notify merchants of successful payments made by customers. ​ The company classified these devices under Customs Tariff Item (CTI) 8517 62 90 and claimed a concessional BCD rate of 10% under Serial No. ​ 20 of Notification No. ​ 57/2017.

    However, the customs department issued two show-cause notices alleging that the devices were 4G LTE compliant and therefore fell under the exclusionary clauses of the notification, making them ineligible for the concessional duty rate. ​ The department demanded differential duty and imposed penalties.

    This Article has been written by Shri Ravi Shekhar Jha, Advocate Delhi High Court based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.

    Source: CESTAT Delhi

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  • CESTAT Mumbai Quashes Customs Reclassification of Scrap and Orders Refund with Interest

    CESTAT Mumbai Quashes Customs Reclassification of Scrap and Orders Refund with Interest

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 13.08.2025

    CESTAT Mumbai Quashes Customs Reclassification of Scrap and Orders Refund with Interest ​ ​ ​

    In a landmark decision, the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Mumbai, has delivered justice to M/s. Shreem Worldwide Private Limited, an importer who faced significant penalties and fines due to the reclassification of their imported goods. ​ The case, which revolved around the classification and valuation of imported “Heavy Melting Scrap,” highlights the importance of expert opinions and adherence to established legal principles in customs disputes. ​

    Background of the Case

    The dispute began when M/s. Shreem Worldwide Private Limited imported a consignment of “Heavy Melting Scrap” from the UAE, declaring its value as β‚Ή19,42,688/- and paying the applicable duty of β‚Ή3,27,429/-. ​ However, upon examination by Docks Officials, the goods were reclassified as “serviceable used iron pipes, rusted and corroded,” leading to a reassessment of their value and imposition of a redemption fine of β‚Ή3,00,000/- and a penalty of β‚Ή50,000/-. ​ The importer contested this decision, citing a Chartered Engineer’s report that certified the pipes as discarded and unserviceable in their present form. ​ Despite this expert opinion, the Commissioner of Customs (Appeals) upheld the adjudication order, prompting the importer to escalate the matter to the Tribunal.

    This Article has been written by Shri Ravi Shekhar Jha, Advocate Delhi High Court based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.

    Source: CESTAT Mumbai

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  • CESTAT Chennai- Delay in EODC Issuance Beyond Importer’s Control

    CESTAT Chennai- Delay in EODC Issuance Beyond Importer’s Control

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 13.08.2025

    CESTAT Chennai- Delay in EODC Issuance Beyond Importer’s Control

    In a significant ruling, the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Chennai, has set aside a duty demand against M/s. Mohan Breweries & Distilleries Ltd. under the Export Promotion Capital Goods (EPCG) Scheme. ​ The case highlights the importance of procedural fairness and the role of government authorities in facilitating compliance with export obligations. ​

    Background of the Case

    M/s. Mohan Breweries & Distilleries Ltd. was issued an EPCG license for importing capital goods at a concessional duty rate under Customs Notification No. 55/2003. The company undertook to fulfill export obligations equivalent to eight times the duty saved within eight years. ​ However, the Customs Department alleged non-compliance due to the non-submission of the Export Obligation Discharge Certificate (EODC) and issued a demand for Rs. ​ 8,18,647/- along with applicable interest. ​ The appellant contended that they had fulfilled their export obligations and had applied for the EODC with the Directorate General of Foreign Trade (DGFT). ​ Despite this, the Commissioner of Customs (Appeals-II) rejected their request to transfer the case to the call book and upheld the duty demand.

    This Article has been written by Shri Ravi Shekhar Jha, Advocate Delhi High Court based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.

    Source: CESTAT Chennai

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  • CESTAT Mumbai- Customs authorities cannot overstep their jurisdiction by questioning MEIS benefits without the DGFT’s intervention

    CESTAT Mumbai- Customs authorities cannot overstep their jurisdiction by questioning MEIS benefits without the DGFT’s intervention

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 12.08.2025

    CESTAT Mumbai- Customs authorities cannot overstep their jurisdiction by questioning MEIS benefits without the DGFT’s intervention

    The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Mumbai, recently delivered a significant judgment in the case of Heranba Industries Ltd. vs. Commissioner of Customs, NS-II, Nhava Sheva. This case revolved around the classification of exported goods under the Merchandise Export India Scheme (MEIS) and the jurisdiction of customs authorities to demand recovery of export benefits. ​ The Tribunal’s decision not only clarified the scope of jurisdiction under the Foreign Trade Policy (FTP) but also reinforced the principles of limitation in adjudication proceedings.

    Background of the Case

    Heranba Industries Ltd., a manufacturer of pesticides and insecticides, exported products under the MEIS scheme, claiming benefits at 3% of the Free on Board (FOB) value based on their classification under specific tariff headings (CTH 38089910/38089990). ​ The Directorate General of Revenue Intelligence (DRI) and the Special Intelligence and Investigation Branch (SIIB) later alleged misclassification, claiming the products should have been classified under different headings (CTH 38086100/38086200/38086900), which were either ineligible for MEIS benefits or entitled to a lower rate of 2%. ​

    The customs authorities issued two separate show cause notices (SCNs) for overlapping periods, invoking the extended period of limitation and demanding recovery of MEIS benefits. ​ The second SCN, issued by SIIB, became the subject of this appeal.

    This Article has been written by Shri Ravi Shekhar Jha, Advocate Delhi High Court based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.

    Source: CESTAT Mumbai

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  • CESTAT Delhi Sets Aside Penalty on Customs Broker in CVD Assessment Dispute

    CESTAT Delhi Sets Aside Penalty on Customs Broker in CVD Assessment Dispute

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 12.08.2025

    CESTAT Delhi Sets Aside Penalty on Customs Broker in CVD Assessment Dispute ​ ​ ​

    In a significant ruling, the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi, has set aside the penalty imposed on M/s. ​ AV Global Corporation (P) Ltd., a Customs House Agent (CHA), in a case involving the assessment of Countervailing Duty (CVD) on imported CNG kits and components. ​ The decision, delivered by Judicial, highlights the importance of judicial discretion in penalty imposition and the burden of proof on the department in cases of alleged suppression of facts.

    Background of the Case

    The case arose from an investigation by the Customs Department, which alleged that M/s. ​ Shrimanker Gas Car Services Pvt. ​ Ltd. (the importer) had evaded customs duties by paying CVD based on the transaction value of imported CNG kits instead of the Retail Sale Price (RSP), as mandated under the Customs Tariff Act, 1975, and related provisions. ​ The department issued a show cause notice proposing recovery of Rs. ​ 12,11,469/- along with interest and penalties. ​ M/s. AV Global Corporation, acting as the CHA for the importer, was also penalized under Section 112(a) of the Customs Act, 1962, for allegedly abetting the importer in the short payment of duty. The penalty of Rs. ​ 18,000/- was imposed on the CHA, which was upheld in the Order-in-Appeal. ​ Aggrieved, the CHA approached the Tribunal.

    This Article has been written by Shri Ravi Shekhar Jha, Advocate Delhi High Court based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.

    Source: CESTAT Delhi

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  • CESTAT Kolkata- Under Valuation and Confiscation set aside as it was legally unsustainable

    CESTAT Kolkata- Under Valuation and Confiscation set aside as it was legally unsustainable

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 11.08.2025

    CESTAT Kolkata- Under Valuation and Confiscation set aside as it was legally unsustainable ​ ​

    In a significant ruling, the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Eastern Zonal Bench, Kolkata, has set aside demands for differential customs duty, penalties, and confiscation orders against M/s. ​ Gemini Metal Corporation and Appellant. This decision, pronounced on August 7, 2025, highlights the importance of procedural compliance and evidentiary standards in customs investigations.

    Background of the Case

    The case revolved around allegations of undervaluation of imported goodsβ€”Cold Rolled Stainless Steel Coilsβ€”by M/s. ​ Gemini Metal Corporation (Appellant 1). ​ The Directorate of Revenue Intelligence (DRI) claimed that invoices retrieved from the mobile phone of Mr. ​ Deepak Jindal (Appellant 2) indicated higher import values than those declared by Appellant 1. Based on these invoices, the authorities demanded differential customs duty of Rs. ​ 2.45 crore, along with interest and penalties, and imposed penalties on Mr. Jindal under Section 112(b) of the Customs Act, 1962.

    This Article has been written by Shri Ravi Shekhar Jha, Advocate Delhi High Court based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.

    Source: CESTAT Kolkata

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  • CESTAT Delhi- The re-determination of the car’s value under rule 3 of the customs valuation rules was unjustified

    CESTAT Delhi- The re-determination of the car’s value under rule 3 of the customs valuation rules was unjustified

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 11.08.2025

    CESTAT Delhi- The re-determination of the car’s value under rule 3 of the customs valuation rules was unjustified

    In a landmark decision, the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), New Delhi, has delivered justice to appellants in a case involving the import of a Bentley Flying Spur Automatic car. The judgment, pronounced on August 8, 2025, has set aside penalties, confiscation orders, and demands for differential duty, bringing relief to Appellant, M/s Mera Baba Realty Associates Pvt. Ltd., Vikrant Kalia, and M/s Payless Cargo. ​ This case highlights the importance of adhering to customs regulations while also ensuring fair treatment of importers.

    Background of the Case

    The case revolved around the import of a Bentley Flying Spur Automatic car by Appellant, Director of M/s Big Boyz Toyz, in October 2009. ​ The car was declared as new, with an assessable value of Rs. 73,84,842. However, the Principal Commissioner of Customs re-determined the value to Rs. ​ 88,61,962, citing undervaluation and misdeclaration. ​ Additionally, the benefit of concessional duty under Notification No. ​ 21/2002-CUS was denied, as the car was registered in the UK prior to importation. ​ Penalties and confiscation orders were imposed on the appellants, leading to appeals before the Tribunal.

    This Article has been written by Shri Ravi Shekhar Jha, Advocate Delhi High Court based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.

    Source: CESTAT Delhi

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  • CESTAT Delhi set aside the demand, interest, and penalties, and dismissed the department’s appeals

    CESTAT Delhi set aside the demand, interest, and penalties, and dismissed the department’s appeals

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 08.08.2025

    CESTAT Delhi set aside the demand, interest, and penalties, and dismissed the department’s appeals ​ ​

    On August 7, 2025, the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Principal Bench, New Delhi, delivered a significant judgment in Customs Appeal No. ​ 3567 of 2012, along with related appeals filed by the department. This case, involving M/s D.D. ​ Industries Ltd., sheds light on critical aspects of customs law, including the applicability of retail sale price (RSP) valuation, extended periods of limitation, and the imposition of penalties under the Customs Act, 1962.

    Background of the Case

    M/s D.D. ​ Industries Ltd., engaged in the import, fitment, and trading of CNG kits and components, was accused by the customs department of evading customs duties. ​ The department alleged that the company paid Countervailing Duty (CVD) on the transaction value of imported CNG kits instead of the RSP basis, as required under the Customs Tariff Act, 1975. ​ A show cause notice was issued, and the Joint Commissioner confirmed the demand with penalties. ​ However, the Commissioner (Appeals) provided partial relief, dropping the extended period of limitation but confirming the demand for the normal period under Section 28(1) of the Customs Act. ​

    Both the appellant and the department filed appeals before the Tribunal. The appellant challenged the confirmation of the demand and penalties, while the department contested the Commissioner (Appeals)’ authority to remand the matter.

    This Article has been written by Shri Ravi Shekhar Jha, Advocate Delhi High Court based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.

    Source: CESTAT Delhi

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  • Arbitration

    Aadrikaa Legal Services (ALS)- Law I Litigation I Arbitration

    A professional setting showcasing arbitration as a method of dispute resolution, with legal books titled 'Contracts', 'Dispute Resolution', 'Commercial Law', and 'International Arbitration' stacked on a table. A gavel and scales of justice are prominently displayed, along with an overview of arbitration processes including agreements, proceedings, interim relief, claims and defense, award challenges, and enforcement.

    Arbitration:


    Aadrikaa Legal Services provides strategic support in domestic and cross-border commercial arbitration, covering arbitration agreements, invocation, interim relief, claims and defence, evidentiary strategy, arbitral proceedings, award challenges and enforcement. Our approach combines contractual analysis, commercial understanding and focused dispute strategy to protect clients’ legal and business interests throughout the arbitration lifecycle.

    Write to us at office@aadrikaalaw.com

  • CESTAT Kolkata Clarifies Interest Liability in Provisional Customs Assessments

    CESTAT Kolkata Clarifies Interest Liability in Provisional Customs Assessments

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 07.08.2025

    CESTAT Kolkata Clarifies Interest Liability in Provisional Customs Assessments ​ ​​ ​

    In a significant ruling, the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Kolkata, has delivered a judgment that clarifies the applicability of interest liability under Section 18(3) of the Customs Act, 1962, in cases of provisional customs assessments. The decision, pronounced on August 5, 2025, in the case of M/s NHPC Limited vs. Commissioner of Customs (Port), Kolkata, addresses key issues surrounding the retrospective application of interest provisions and penalties in customs law.

    Background of the Case

    The appellant, NHPC Limited, a public sector undertaking under the Ministry of Power, imported equipment and spare parts for the Teesta Hydroelectric Project in Sikkim between April 2004 and April 2008. These imports were provisionally assessed under Section 18(1) of the Customs Act, 1962, and classified under CTH 9801, availing a NIL rate of Basic Customs Duty (BCD). ​ However, the Department later issued a show-cause notice in May 2019, alleging that the value of spare parts imported exceeded 10% of the value of the main equipment, violating the conditions of the customs notification. ​ Consequently, differential duty was demanded, along with interest and penalties.

    This Article has been written by Shri Ravi Shekhar Jha, Advocate Delhi High Court based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.

    Source: CESTAT Kolkata

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