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Category: LAW

  • CESTAT Kolkata Rejects Customs Value Enhancement Based on NIDB Data

    CESTAT Kolkata Rejects Customs Value Enhancement Based on NIDB Data

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 26.04.2025

    CESTAT Kolkata Rejects Customs Value Enhancement Based on NIDB Data

    The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Eastern Zonal Bench, Kolkata, has recently dismissed an appeal filed by the Revenue challenging the decision of the Commissioner (Appeals) to reject the enhancement of import values based on National Import Database (NIDB) data.

    Background:

    M/s Radha Engineering Company imported “LED/NON-LED Christmas Lights” and “LED Strip Light/LED Rope Light,” declaring specific transaction values. Following an investigation by the Directorate of Revenue Intelligence (DRI), the Revenue alleged undervaluation and enhanced the declared import values based on NIDB data.

    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 Mumbai Orders Interest on Refund of Seized Traveller’s Cheques

    CESTAT Mumbai Orders Interest on Refund of Seized Traveller’s Cheques

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 25.04.2025

    CESTAT Mumbai Orders Interest on Refund of Seized Traveller’s Cheques

    The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai Bench ruled in favor of M/s Sohail Maklai Entertainment Pvt. Ltd., directing the Customs Department to pay interest on the refund of β‚Ή47.86 lakhs, which was encashed from 106 traveller’s cheques seized back in 2006.

    Case Background:

    • On 19.10.2006, Customs officials at CSI Airport, Mumbai seized 106 traveller’s cheques from a passenger.
    • The cheques, amounting to USD $1,07,642 (equivalent to β‚Ή47,86,334), were deposited in the State Bank of India.
    • After prolonged litigation, redemption fine and penalties totaling β‚Ή10.01 lakhs were deducted.
    • The remaining β‚Ή41.85 lakhs was refunded, but no interest was paid on the retained amount.
    • The company sought interest on the refunded amount and alternatively, foreign exchange rate-adjusted compensation.

    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 uphold exemption benefits and correct classification under CTH 8415 9000

    CESTAT Chennai uphold exemption benefits and correct classification under CTH 8415 9000

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 24.04.2025

    CESTAT Chennai uphold exemption benefits and correct classification under CTH 8415 9000

    The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai Bench – Court No. III, has ruled in favor of M/s One Care Medical Centre, Coimbatore, quashing the reclassification of imported Variable Refrigerant Flow (VRF) Air Conditioning Units and the denial of customs exemption benefit.

    Background:

    • The appellant imported various models of Toshiba indoor and outdoor air conditioning units from M/s Toshiba Carrier (Thailand) Co. Ltd. under Bills of Entry dated 07.11.2014.
    • They classified the goods under CTH 8415 9000 and claimed benefit under Customs Notification No. 46/2011 Sl. No. 1103(1).
    • The Revenue disagreed, asserting the goods were complete air conditioning units of more than 2-ton capacity, reclassifying them under CTH 8415 8110, attracting full duty.

    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 Kolkata Sets Aside Seizure of Black Pepper & Green Peas

    CESTAT Kolkata Sets Aside Seizure of Black Pepper & Green Peas

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 24.04.2025

    CESTAT Kolkata Sets Aside Seizure of Black Pepper & Green Peas

    The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Kolkata Bench – Court No. 2, has allowed a batch of six appeals related to the alleged smuggling of black pepper and green peas from Nepal into India, holding that the Revenue failed to prove the foreign origin of the goods and that the seizures conducted at Muzaffarpur constituted “town seizures” without sufficient statutory backing.

    Case Background:

    • Based on intelligence reports, officers of the Directorate of Revenue Intelligence (DRI) intercepted a truck and escort car at Hajipur, Bihar on 28.05.2019.
    • The truck was found carrying 6,718.5 kg of black pepper and 3,918 kg of peas.
    • The Revenue alleged these goods were smuggled from Nepal through Bhimnagar border and lacked legal documentation.

    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 Ahmedabad Held that value cannot be re-determined on weight when units price were declared and invoiced

    CESTAT Ahmedabad Held that value cannot be re-determined on weight when units price were declared and invoiced

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 23.04.2025

    CESTAT Ahmedabad Held that value cannot be re-determined on weight when units price were declared and invoiced

    The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Ahmedabad – Court No. 3, has allowed two appeals filed by ISGEC Heavy Engineering Ltd., setting aside penalties and redemption fine imposed by customs authorities on the grounds of alleged misdeclaration of weight in multiple Bills of Entry.

    Case Overview:

    • The case pertained to import of engineering components including:
      • Carbon Steel Forged Hemi (ASME SA266 GR2)
      • Proof Machined Low Alloy Steel Spool
      • Test Plates
    • Customs claimed excess weight in three shipments totaling over 13.37 MTS more than declared.
    • Alleged misdeclaration valued at approx. β‚Ή31.45 lakhs with total differential duty of approx. β‚Ή9.48 lakhs.

    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 Ahmedabad

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  • CESTAT Mumbai No provision under Customs Act, 1962 empowers officers to collect interest in the absence of duty

    CESTAT Mumbai No provision under Customs Act, 1962 empowers officers to collect interest in the absence of duty

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 23.04.2025

    CESTAT Mumbai No provision under Customs Act, 1962 empowers officers to collect interest in the absence of duty

    The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai Bench has allowed the appeal of M/s Lotus Herbals Color Cosmetics, ordering the refund of β‚Ή1,02,818, which was collected as interest without legal authority during EPCG import clearance.

    Case Overview:

    • The appellant imported a filling machine and parts under Bill of Entry No. 7362042 dated 27.03.2020 at JNPT, Nhava Sheva.
    • At the time of filing, they did not possess an EPCG authorisation, which was later issued on 03.06.2020.
    • Due to the COVID-19 lockdown, the EPCG licence was submitted after some delay.
    • Customs officers allegedly verbally demanded payment of interest for the intervening period.
    • The appellant paid β‚Ή1,02,818 as interest vide challan dated 25.06.2020, and the goods were cleared at nil customs duty under Notification No. 16/2015-Cus.

    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 New Delhi Quashes Customs Order Due to Inordinate Delay in Adjudication

    CESTAT New Delhi Quashes Customs Order Due to Inordinate Delay in Adjudication

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 22.04.2025

    CESTAT New Delhi Quashes Customs Order Due to Inordinate Delay in Adjudication

    The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Delhi Principal Bench, has set aside a 2023 customs adjudication order issued against Innovale Investment Pte Ltd, ruling that the inordinate delay of nearly 10 years in adjudicating a show cause notice rendered the proceedings unsustainable in law.

    Case Overview:

    • The dispute pertained to the import of an Embraer Phenom 100 aircraft under Bill of Entry No. 269117 dated 24.06.2011.
    • The aircraft was provisionally released against a bond and bank guarantee of β‚Ή4.10 crore.
    • Customs authorities alleged misuse of exemption under Notification No. 01/2002-Cus as amended by Notification 01/2011-Cus, and issued a show cause notice on 31.07.2013.
    • On 19.01.2023, the Principal Commissioner of Customs ordered:
      • Confiscation of the aircraft under Section 111(o) of the Customs Act.
      • Redemption fine of β‚Ή1 crore under Section 125.
      • Penalty of β‚Ή25 lakh under Section 112(a).

    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 New Delhi

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  • CESTAT Chennai Declares Customs Broker Suspension Appeals Infructuous Following High Court Quashing

    CESTAT Chennai Declares Customs Broker Suspension Appeals Infructuous Following High Court Quashing

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 22.04.2025

    CESTAT Chennai Declares Customs Broker Suspension Appeals Infructuous Following High Court Quashing

    The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Chennai Bench – Court No. I disposed of two appeals filed by M/s HSN Shipping Pvt. Ltd. related to the suspension and continued suspension of its Customs Broker Licence (No. R-308/CHA), declaring them infructuous in light of a prior Madras High Court order that had already quashed the impugned orders.

    Case Background:

    • HSN Shipping Pvt. Ltd. was a licensed customs broker under CBLR, 2013, holding valid licence No. R-308/2014.
    • The company handled clearance of a consignment imported by M/s R.S. Enterprises under Bill of Entry No. 6102740 dated 15.07.2014.
    • Allegations were made that the broker forged an β€œopen chit” document at the CFS and improperly obtained signatures, leading to an order of suspension on 09.06.2015 and a subsequent Order-in-Original dated 02.07.2015 continuing the suspension under Regulation 19(2) of the CBLR, 2013.

    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 Hyderabad Upholds DFIA Exemption on Lithium-Ion Battery Imports

    CESTAT Hyderabad Upholds DFIA Exemption on Lithium-Ion Battery Imports

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 21.04.2025

    CESTAT Hyderabad Upholds DFIA Exemption on Lithium-Ion Battery Imports

    The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Hyderabad Bench – Court No. I has dismissed the Department’s appeal and upheld the exemption granted to M/s Olectra Greentech Ltd. for import of Lithium-ion batteries under a Transferable DFIA (Duty-Free Import Authorisation) scheme.

    Background:

    • Olectra Greentech imported lithium-ion cells under a DFIA license issued against exports of Agricultural Tractors.
    • The customs department denied the benefit of exemption under Notification No. 25/2023-Cus dated 01.04.2023, stating that lithium-ion batteries do not match the export input description of “automotive batteries.”
    • The Commissioner (Appeals) had earlier ruled in favor of Olectra, prompting a departmental 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 Hyderabad

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  • CESTAT Bangalore set aside the re-determined valuation

    CESTAT Bangalore set aside the re-determined valuation

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 21.04.2025

    CESTAT Bangalore set aside the re-determined valuation

    The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Bangalore Bench, has ruled in favor of M/s Saash Enterprises, setting aside a customs order that had rejected the declared transaction value of imported laminators, binding machines, and related equipment. The Tribunal quashed the re-determined valuation, confiscation, penalty, and fine imposed by the lower authorities.

    Case Background:

    • The case involved Bill of Entry No. 8730452 dated 11.12.2012 for goods including laminators, wire binding machines, and paper cutters.
    • Although the physical description and quantity of the goods matched the import documentation, the customs authorities questioned the declared value and engaged a Chartered Engineer, who estimated a value of USD 69,021 against the declared USD 55,142.06.
    • Based on this, customs re-valued the consignment to β‚Ή46.43 lakhs (from β‚Ή30.96 lakhs) and imposed:
      • Redemption fine of β‚Ή5,00,000
      • Penalty of β‚Ή2,00,000 under Section 112(a) 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 Bangalore

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