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Category: Ministry of Finance

  • CESTAT Mumbai Set Aside the Confiscation and Penalties in Warehousing Dispute

    CESTAT Mumbai Set Aside the Confiscation and Penalties in Warehousing Dispute

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 09.07.2025

    CESTAT Mumbai Set Aside the Confiscation and Penalties in Warehousing Dispute

    The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai set aside the confiscation of goods and penalties imposed on Akshay Logistics, a licensed public warehouse operator under Section 57 of the Customs Act, 1962.

    This decision not only provides relief to the appellant but also offers critical judicial interpretation on warehousing compliance, penalty provisions, and the scope of customs powers in bonded warehousing operations.

    Background of the Case

    The dispute arose after customs officials visited the appellant’s premises between 28 August and 5 September 2023, alleging various infractions including improper storage and violation of warehousing conditions. This led to the confiscation of goods worth β‚Ή9.36 crores under Section 111(j) and imposition of penalties under Sections 112 and 117 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 Mumbai

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  • CESTAT Ahmedabad Holds Customs Notification

    CESTAT Ahmedabad Holds Customs Notification

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 08.07.2025

    CESTAT Ahmedabad Holds Customs Notification

    The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Ahmedabad has allowed the appeal of Patanjali Foods Limited, holding that Customs Notification No. 46/2015-Cus dated 17.09.2015 became effective only on 21.09.2015β€”the date it was offered for saleβ€”rather than its issuance date.

    Background: The Customs Duty Dispute

    The dispute centered around a 5% increase in customs duty introduced by Notification No. 46/2015-Cus, issued on 17th September 2015. Patanjali Foods challenged the retrospective imposition of higher duty, asserting that their goods were cleared on 18th September 2015β€”before the notification was legally enforceable. They cited Section 25(4)(b) of the Customs Act, 1962 (as it existed then), which clearly provided that a notification becomes enforceable only when published and offered for sale by the Directorate of Publicity and Public Relations of CBIC.

    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 Allahabad Overturns Penalty in Gold Smuggling

    CESTAT Allahabad Overturns Penalty in Gold Smuggling

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 08.07.2025

    CESTAT Allahabad Overturns Penalty in Gold Smuggling

    The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Allahabad, has allowed a batch of five appeals involving allegations of gold smuggling and has set aside the penalties imposed under Section 112(b) of the Customs Act, 1962. The case revolved around the alleged recovery of over 2.2 kg of gold from two individuals purportedly acting under instructions from the so-called “Verma Brothers.”

    Background of the Case

    The case originated from a Customs Preventive operation on 30.03.2019 at Cheoki Railway Station, Prayagraj, where two individualsβ€”Appellantsβ€”were allegedly found in possession of gold bars weighing 2.2 kg, valued at β‚Ή72.2 lakhs. The authorities claimed the gold was smuggled into India through Bangladesh via Kolkata. Based on their alleged confessional statements, Customs extended its investigation to include Appellants (collectively referred to as the “Verma Brothers”), imposing penalties of β‚Ή25 lakhs each on them and β‚Ή5 lakhs each on Appellants.

    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 Bangalore Upholds Duty Exemption for Phoenix Medicare

    CESTAT Bangalore Upholds Duty Exemption for Phoenix Medicare

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 08.07.2025

    CESTAT Bangalore Upholds Duty Exemption for Phoenix Medicare

    Background

    Phoenix Medicare Pvt. Ltd. imported autosuture surgical tools such as staplers, trocars, and protak devices, classifying them under CTH 9018 9099 and claimed concessional duty benefits under:

    • Notification No. 21/2002-Cus. dated 01.03.2002 (Sl. No. 82, List 37)
    • Notification No. 6/2006-CE dated 01.03.2006 (Sl. No. 61(b))

    The assessing officer denied the exemption, contending that the goods were surgical toolsβ€”not accessoriesβ€”and hence were not covered under the relevant notifications.

    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- Exemption Upheld in Marble Slabs Classification Dispute

    CESTAT Chennai- Exemption Upheld in Marble Slabs Classification Dispute

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 07.07.2025

    CESTAT Chennai- Exemption Upheld in Marble Slabs Classification Dispute

    Case Background

    The Directorate of Revenue Intelligence (DRI) alleged that the appellants wrongly classified polished (honed) marble slabs under CTH 6802 2110 and availed exemption under Notification No. 04/2006-CE, whereas the goods were allegedly classifiable under CTH 6802 2190, attracting a higher rate of CVD (16%).

    The adjudicating authority reclassified the goods, raised differential duty demands (β‚Ή58+ lakh for Akash Stone), imposed equivalent penalties under Section 112(a) of the Customs Act, 1962, and held the benefit of exemption notification to be inapplicable.

    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 Rejected Revenue Appeals and Upholds SAD Refund

    CESTAT Mumbai Rejected Revenue Appeals and Upholds SAD Refund

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 07.07.2025

    CESTAT Mumbai Rejected Revenue Appeals and Upholds SAD Refund

    Background of the Case

    Ram Ratna Infrastructure Pvt. Ltd. imported goods on which they paid 4% Special Additional Duty (SAD) under Section 3(5) of the Customs Tariff Act, 1975. These goods were subsequently sold on payment of Value Added Tax (VAT). The company filed two refund applications:

    • β‚Ή12,06,790/- and
    • β‚Ή2,59,343/-

    claiming refund of SAD paid, supported by CA certificates confirming that the burden of duty had not been passed on to the buyer. The original adjudicating authority rejected the refund claims on the ground of unjust enrichment. However, the Commissioner (Appeals) allowed the refund, holding that the company was entitled to it and no unjust enrichment had occurred.

    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 Penalties on Small Jewellers

    CESTAT Delhi Sets Aside Penalties on Small Jewellers

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 07.07.2025

    CESTAT Delhi Sets Aside Penalties on Small Jewellers

    Background

    The appellantsβ€”small-scale jewellers from Panipat, Haryanaβ€”were caught in a DRI-led raid at a Karol Bagh shop in 2018. Large quantities of gold bars of foreign origin and Indian currency exceeding β‚Ή3 crore were seized. The jewellers were found with cash amounts ranging between β‚Ή3.1 lakhs and β‚Ή9.5 lakhs, allegedly meant to buy gold from a person.

    The Customs Department issued a Show Cause Notice alleging that the appellants were conspirators in the smuggling of foreign-origin gold, proposing confiscation of currency under Section 121 and penalties under Section 117 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 Delhi

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  • CESTAT Allahabad- Customs Cannot Reject Foreign COO Without Verification

    CESTAT Allahabad- Customs Cannot Reject Foreign COO Without Verification

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 05.07.2025

    CESTAT Allahabad- Customs Cannot Reject Foreign COO Without Verification

    Background

    The case stemmed from the import of dry chopped dates by M/s Navarshi Overseas through ICD Dadri, which were allegedly of Pakistan origin but declared as UAE origin. The customs department invoked Notification No. 05/2019-Cus dated 16.02.2019, which imposed 200% customs duty on Pakistani-origin goods following the Pulwama terror attack.

    Based on this, the Commissioner of Customs (Preventive), Noida, had:

    • Rejected the claimed country of origin (UAE)
    • Confiscated the goods
    • Imposed β‚Ή1 lakh redemption fine
    • Imposed personal penalties on multiple parties including CHA employees, traders, and facilitators

    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 Chandigarh- FSSAI Standards Not Mandatory for Basmati Rice Exports

    CESTAT Chandigarh- FSSAI Standards Not Mandatory for Basmati Rice Exports

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 05.07.2025

    CESTAT Chandigarh- FSSAI Standards Not Mandatory for Basmati Rice Exports

    Background of the Case

    M/s Hightop Trading Pvt. Ltd., a rice exporter registered with APEDA, faced punitive action by Customs, Ludhiana, for allegedly misdeclaring β€œnon-basmati rice” as β€œPUSA Brown Basmati Rice” under CTH 1006 3020.

    The customs authorities, relying on a CRCL lab report, claimed the exported rice failed to meet certain parameters under FSSAI standards. Consequently, duty demand, confiscation, penalty, and redemption fine totaling over β‚Ή2 crore were imposed.

    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 Chandigarh

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  • CESTAT Delhi- Refund of ADD Permissible Despite Clerical Self-Assessment Error

    CESTAT Delhi- Refund of ADD Permissible Despite Clerical Self-Assessment Error

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 04.07.2025

    CESTAT Delhi- Refund of ADD Permissible Despite Clerical Self-Assessment Error

    The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Delhi has ruled that the refund of Anti-Dumping Duty (ADD) paid due to a clerical self-assessment error is admissible, provided substantive conditions are met. The Tribunal held that procedural lapses cannot defeat substantive rights, especially when the excess duty paid is evident from the Bill of Entry and supported by a valid exemption.

    Case Background

    • Appellant: Uflex Limited, Noida
    • Import: 29 boxes of Aluminium Foil (6.3 microns) from China
    • Bill of Entry: No. 2535627 dated 21.09.2022
    • Declared Value: β‚Ή68.29 lakh
    • Duty Paid: Basic Customs Duty, SWS, IGST, and ADD, despite ADD being exempted for 6.3-micron aluminium foil under Notification No. 51/2021-Cus (ADD) dated 16.09.2021
    • Refund Sought: β‚Ή7,14,018/- (β‚Ή6,05,100 ADD + β‚Ή1,08,918 IGST)

    Due to a clerical error, Uflex self-assessed and paid ADD. The company filed:

    • A request for reassessment on 12.10.2022
    • A refund application on 13.10.2022

    Both were rejected, citing:

    • Finality of self-assessment under Section 17 of the Customs Act
    • Supreme Court decisions in Priya Blue Industries and ITC Ltd.

    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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