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Category: Ministry of Finance

  • CESTAT Chennai Upholds Classification of Tomato Dry Flavour Under CTH 3302

    CESTAT Chennai Upholds Classification of Tomato Dry Flavour Under CTH 3302

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 30.06.2025

    CESTAT Chennai Upholds Classification of Tomato Dry Flavour Under CTH 3302

    The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai, has allowed the appeal of M/s Symrise Pvt. Ltd., ruling that the imported product β€œTomato Dry Flavour” is correctly classifiable under Customs Tariff Heading (CTH) 3302 1010 as an odoriferous substance, and not under CTH 2106 9060 as previously contended by customs authorities.

    The Tribunal’s Final Order No. 40499/2023 dated 28.06.2023, sets aside the earlier denial of concessional basic customs duty (BCD) under Notification No. 21/2002, Sl. No. 119.

    Background of the Case

    • Symrise Pvt. Ltd. imported Tomato Dry Flavour and classified it under CTH 3302 1010, claiming a 10% BCD exemption.
    • The Revenue reclassified the product under CTH 2106 9060 (food preparations not elsewhere specified), triggering a demand for differential duty under Section 28 of the Customs Act, 1962.
    • The Commissioner (Appeals) upheld the reclassification, prompting the present appeal before CESTAT.

    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 Allahabad- Customs Broker Not Liable for Importer’s Valuation

    CESTAT Allahabad- Customs Broker Not Liable for Importer’s Valuation

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 30.06.2025

    CESTAT Allahabad- Customs Broker Not Liable for Importer’s Valuation

    The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Allahabad, vide Final Order No. 70034/2025 dated 09 January 2025, has set aside the penalty imposed on M/s HIM Logistics Pvt. Ltd., a licensed Customs Broker, in a case alleging under-valuation of goods imported by M/s Shiv Shakti Enterprises.

    The Tribunal reiterated that a Customs Broker cannot be held liable for valuation disputes where bills of entry are filed strictly based on documents submitted by the importer.

    Background of the Case

    • HIM Logistics Pvt. Ltd., holding a CHA licence (No. R07/2004), filed Bills of Entry on behalf of M/s Shiv Shakti Enterprises.
    • Customs alleged undervaluation, comparing declared value (USD 1.02/sq. meter) with previously accepted value (USD 1.24/sq. meter).
    • The importer accepted the enhanced valuation during investigation and paid differential duties, interest, and penalties.
    • Penalties of β‚Ή10,000 and β‚Ή5,000 under Section 112(a) of the Customs Act, 1962 were imposed on HIM Logistics by the Adjudicating Authority and upheld by the Commissioner (Appeals), CGST, Noida.

    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 Allahabad

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  • CESTAT Chennai- No Misdeclaration in Buff Sole Leather Export

    CESTAT Chennai- No Misdeclaration in Buff Sole Leather Export

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 28.06.2025

    CESTAT Chennai- No Misdeclaration in Buff Sole Leather Export

    The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai, in its Final Order No. 40667/2025 dated 25.06.2025, ruled in favour of M/s. Welfare Leather Co. by setting aside the confiscation, redemption fine, and penalty imposed on the alleged misdeclaration of leather goods.

    Background:

    Welfare Leather had filed a drawback shipping bill for the export of Buff Sole Leather, which was subjected to inspection and testing by the Central Leather Research Institute (CLRI). The CLRI report concluded that the leather did not conform to the prescribed thickness (less than 3mm) and apparent density (less than 0.9 gm/cc) as per DGFT Public Notice No. 21/2009-14 dated 01.12.2009.

    Relying on this report, the adjudicating authority ordered the confiscation of the goods valued at β‚Ή3,02,206.39, imposed a redemption fine of β‚Ή25,000 under Section 125 of the Customs Act, and levied a penalty of β‚Ή5,000 under Section 114(ii).

    The Commissioner (Appeals) upheld the adjudication, leading the appellant to file the current appeal before CESTAT Chennai.

    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 Bangalore- No DGCA Clearance Needed for Toy-Grade UAVs

    CESTAT Bangalore- No DGCA Clearance Needed for Toy-Grade UAVs

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 28.06.2025

    CESTAT Bangalore- No DGCA Clearance Needed for Toy-Grade UAVs

    The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Bangalore, vide Final Order No. 20876/2025 dated 25.06.2025, allowed the appeal filed by M/s. Creative Education, setting aside the confiscation and penalty imposed on the import of quadcopter drones classified under Chapter Heading (CH) 9503 as toys.

    Background of the Case

    M/s. Creative Education had imported RC quadcopter drones with cameras, and the consignment was classified under CH 9503 00 30 as plastic recreational articles. The Customs authorities, however, invoked Public Notice dated 07.10.2014 issued by DGCA and Notification No. 16/2015-20 dated 27.07.2016, to treat the goods as restricted items under CH 8806, requiring DGCA clearance. As a result, the goods were confiscated under Section 111(d) of the Customs Act, 1962, and a penalty of β‚Ή3,00,000 was levied 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 Bangalore

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  • CESTAT Chennai Quashes Penalties on Customs Broker in Export Overvaluation

    CESTAT Chennai Quashes Penalties on Customs Broker in Export Overvaluation

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 27.06.2025

    CESTAT Chennai Quashes Penalties on Customs Broker in Export Overvaluation

    The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai Bench, has quashed heavy penalties imposed on M/s. Cochin Air Cargo Clearing House and its partners. The Tribunal ruled that there was no substantive evidence of the Customs Broker’s connivance in the alleged overvaluation of goods intended for export or in the fraudulent MEIS claims.

    Background of the Case

    The case stemmed from an attempted export in June 2019 by M/s. Swiss Global, New Delhi, who sought to export substandard β€œair inlet automobile spare parts” valued at β‚Ή3.46 crore through the Trichy Air Cargo Terminal. The shipments, declared under CTH 84212300, were allegedly overvalued to fraudulently claim Merchandise Exports from India Scheme (MEIS) benefits and IGST refunds.

    The customs authorities at Trichy initiated an investigation based on specific intelligence and seized the export cargo. A Show Cause Notice was issued, followed by a harsh Order-in-Original dated 30.06.2020 imposing the following penalties:

    • β‚Ή3 crore on Cochin Air Cargo Clearing House (Cochin unit)
    • β‚Ή3 crore on its Trichy branch
    • β‚Ή2 crore each on its Managing Partner and Manager

    The department invoked Sections 114(iii), 114AA, and 147(3) of the Customs Act, 1962, treating the Customs Broker and its partners as β€œdeemed exporters” liable for the attempted fraudulent export.

    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 Bangalore Quashes Anti-Dumping Duty on CD-R Imports

    CESTAT Bangalore Quashes Anti-Dumping Duty on CD-R Imports

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 27.06.2025

    CESTAT Bangalore Quashes Anti-Dumping Duty on CD-R Imports

    The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Bangalore, has quashed the anti-dumping duty demand raised against Hi-Tech Computers, Hubli, on the import of CD-Rs from China. This decision aligns with the landmark Supreme Court ruling in Commissioner of Customs, Bangalore vs. G.M. Exports, reinforcing the legal position that anti-dumping duty cannot be imposed during the interregnum between expiry of provisional duty and the issuance of final duty notification.

    Case Background

    Hi-Tech Computers had imported Compact Disc – Recordable (CD-Rs) of Carbon brand from China on 24.04.2007. These imports were deemed liable for anti-dumping duty under Notification No. 105/2006-Cus dated 06.10.2006.

    Subsequently, the customs department confirmed a duty liability of β‚Ή6,64,208 along with applicable interest under Section 18(2)(a) and 18(3) of the Customs Act, 1962. The Commissioner (Appeals) upheld the original order by citing both Notification No. 105/2006 and the final Notification No. 78/2007 dated 29.06.2007, applying the anti-dumping duty retrospectively.

    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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  • CESTAT Ahmedabad Set Aside Customs Duty Demand and Penalties on Re-Import of DG Sets

    CESTAT Ahmedabad Set Aside Customs Duty Demand and Penalties on Re-Import of DG Sets

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 27.06.2025

    CESTAT Ahmedabad Set Aside Customs Duty Demand and Penalties on Re-Import of DG Sets

    The Customs Excise & Service Tax Appellate Tribunal (CESTAT), Ahmedabad, has delivered a significant ruling in favour of Sterling Generators Pvt. Ltd., a 100% Export Oriented Unit (EOU), by setting aside a customs duty demand of over β‚Ή1 crore along with associated penalties. The decision, dated 26.06.2025, not only quashes the demand but also reinforces important principles around re-importation, procedural compliance, and limitation in customs law.

    Background of the Case

    Sterling Generators Pvt. Ltd., based in Silvassa, operates as a 100% EOU engaged in manufacturing diesel generator (DG) sets under Chapter 85 of the Central Excise Tariff Act, 1985. The company was granted bonded warehouse status under Section 58 and permission to manufacture in bond under Section 65 of the Customs Act, 1962.

    The case arose after CERA auditors objected to the import/re-import of DG sets from SEZ and from another 100% EOU (M/s. Powerica Ltd.), claiming that the company had imported fully built DG sets and sold them without authorized manufacturing activity, in contravention of the EOU norms.

    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 Quashes Suspension of Customs Broker Licence

    CESTAT Mumbai Quashes Suspension of Customs Broker Licence

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 26.06.2025

    CESTAT Mumbai Quashes Suspension of Customs Broker Licence

    The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai has quashed the suspension of the customs broker licence of Eicon Impex LLP. The suspension, which was effected by the Commissioner of Customs, Nagpur, was declared non-compliant with regulatory mandates and set aside in Final Order No. A/85375/2023 dated 28th February 2023.

    Background of the Case

    The case arose from the suspension of the customs broker licence of Eicon Impex LLP following allegations of mis-declaration in one Bill of Entry filed on behalf of M/s White Feather Trading Company. The consignment was examined in September 2022, but the suspension order was passed much laterβ€”on 28th December 2022β€”and continued vide a subsequent order dated 25th January 2023 after a post-decisional hearing.

    Eicon Impex LLP challenged the continuation of the suspension under Regulation 16 of the CBLR, 2018, arguing that the action lacked immediacy and was procedurally unjust.

    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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  • Delhi High Court- Customs Detention in NDPS Case Declared Illegal

    Delhi High Court- Customs Detention in NDPS Case Declared Illegal

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 26.06.2025

    Delhi High Court- Customs Detention in NDPS Case Declared Illegal

    The Delhi High Court has granted bail to Appellant, an Ethiopian national, in a case involving alleged drug trafficking under the Narcotic Drugs and Psychotropic Substances Act, 1985 (NDPS Act). The Court held that the petitioner’s prolonged detention by Customs officials without producing him before a magistrate constituted a violation of Articles 21 and 22 of the Constitution of India.

    Background

    Appellant was intercepted by Customs officials at IGI Airport, Delhi on 21 May 2023 after he was suspected of concealing drugs internally. He voluntarily admitted to ingesting 75 capsules containing methaqualone and cocaine, which were medically removed at Safdarjung Hospital. Despite this, he was only formally arrested by the Customs Department on 26 May 2023.

    The NDPS recovery was significant:

    • Cocaine Hydrochloride: 424 grams
    • Methaqualone: 536 grams
    • Total: 960 grams, qualifying as a commercial quantity.

    Appellant filed a bail application under Section 439 of the CrPC, read with Section 37 of the NDPS Act.

    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: Delhi High Court

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  • CESTAT Ahmedabad Dismisses Allegations of SEZ Export Fraud and Duty Evasion

    CESTAT Ahmedabad Dismisses Allegations of SEZ Export Fraud and Duty Evasion

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 26.06.2025

    CESTAT Ahmedabad Dismisses Allegations of SEZ Export Fraud and Duty Evasion

    The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Ahmedabad, vide Final Order Nos. A/10315-10316/2023 dated 23.02.2023, has quashed the customs duty demand and associated penalties imposed by the Commissioner of Customs, Kandla. The Tribunal found that the allegations of clandestine removal of goods from the Kandla Special Economic Zone (KASEZ) were unsupported by concrete evidence.

    Background of the Case

    The case pertained to the alleged misdeclaration of goods declared as β€œFancy Scarves” and β€œFancy Dupattas” exported by M/s Siddhnath Shipping, operating as a KASEZ trading unit. The goods were sourced from M/s Cosmic Textiles Pvt. Ltd., a 100% EOU based in Surat.

    The customs department alleged that:

    • Siddhnath Shipping declared a net weight of 19,002 Kgs in the shipping bill, while actual weight found was only 1,450 Kgs.
    • The goods exported were of inferior quality, contrary to what was received from the EOU.
    • There was a clandestine diversion of the actual consignment into the Domestic Tariff Area (DTA), violating SEZ/EOU rules and customs law.

    Based on these findings, the department issued a Show Cause Notice demanding β‚Ή57.24 lakhs in customs duty, confiscated the goods, and levied penalties under Section 114(ii) 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 Ahmedabad

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