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Tag: #CESTAT

  • CESTAT Ahmedabad Allows Customs Duty Refund on Coastal Vessel

    CESTAT Ahmedabad Allows Customs Duty Refund on Coastal Vessel

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 29.07.2025

    CESTAT Ahmedabad Allows Customs Duty Refund on Coastal Vessel

    In a significant legal development, the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Ahmedabad, has delivered a favorable judgment for Neha Shipping and Allied Services Pvt. Limited in their appeal against the recovery of Rs. ​ 11,05,908/- along with applicable interest. ​ The case revolved around the refund of excess customs duty paid during the coastal conversion of the vessel “MV Endurance.” ​

    Background of the Case

    The dispute originated when Neha Shipping filed a refund claim for Rs. ​ 11,05,908/- after the final assessment of customs duty revealed a reduced liability compared to the provisional assessment. ​ While the Assistant Commissioner initially sanctioned the refund, the department challenged the decision, citing the doctrine of unjust enrichment under Section 18(5) of the Customs Act, 1962. ​ The Commissioner (Appeals) subsequently remitted the case for re-examination, leading to the refund amount being transferred to the Consumer Welfare Fund due to the appellant’s alleged failure to prove that the burden of excess duty was not passed on.

    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 Kolkata Rejects Revenue’s Misdeclaration Allegation ​

    CESTAT Kolkata Rejects Revenue’s Misdeclaration Allegation ​

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 28.07.2025

    CESTAT Kolkata Rejects Revenue’s Misdeclaration Allegation ​

    In a significant ruling, the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Kolkata, dismissed the appeal filed by the Revenue against M/s Maa Kali Traders concerning the classification and valuation of imported goods. The case revolved around whether the imported goods, declared as “Unwrought/Unrefined Zinc,” were misclassified as “Zinc Dross,” a restricted item under the Foreign Trade Policy (FTP). ​ The Tribunal’s decision highlights the importance of evidence-based adjudication and adherence to procedural norms in customs disputes.

    Background of the Case

    M/s Maa Kali Traders imported goods between January 2014 and December 2015, declaring them as “Unwrought/Unrefined Zinc” under CTH No. 79012090. The Revenue conducted chemical tests to ascertain the zinc content, which revealed a higher percentage of zinc than declared. ​ Based on these findings, the Assessing Officer issued an assessment order demanding differential duty of Rs. ​ 5,05,494/- along with interest, citing a higher assessable value. ​

    The importer challenged the valuation, arguing that the transaction value was arbitrarily enhanced without legal basis. ​ Simultaneously, the Revenue contended that the goods were misdeclared and should be classified as “Zinc Dross,” subject to import restrictions.

    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 Chennai Grants MRI Accessory Exemption to Philips India

    CESTAT Chennai Grants MRI Accessory Exemption to Philips India

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 28.07.2025

    CESTAT Chennai Grants MRI Accessory Exemption to Philips India

    The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), South Zonal Bench, Chennai, recently delivered a significant judgment in the case of M/s Philips India Limited vs. ​ The Commissioner of Customs (Air Cargo). ​ This case revolved around the classification and eligibility for customs duty exemptions of the Sonalleve MR HIFU KIT, a specialized medical device used in conjunction with MRI machines. ​ The ruling not only clarified the classification of the product but also reinforced the importance of adhering to the scope of Show Cause Notices in customs proceedings.

    Case Background

    M/s Philips India Limited had imported the Sonalleve MR HIFU KIT, declaring it as an accessory to MRI machines under Customs Tariff Heading (CTH) 9018 13 00. ​ The company claimed concessional rates of Basic Customs Duty (BCD) and Countervailing Duty (CVD) under Notification No. ​ 21/2002-Cus and Notification No. ​ 6/2006-CE, respectively. ​ However, the customs department issued a Show Cause Notice alleging that the imported goods were not accessories to MRI machines and denied the claimed exemptions. ​ The original authority upheld this view, leading to the confirmation of differential duty along with interest.

    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 Quashes β‚Ή4.6 Crore Anti-Dumping Duty Demand

    CESTAT Mumbai Quashes β‚Ή4.6 Crore Anti-Dumping Duty Demand

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 26.07.2025

    CESTAT Mumbai Quashes β‚Ή4.6 Crore Anti-Dumping Duty Demand

    In a landmark decision, the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Mumbai, has ruled in favor of Neo Wheels Ltd. and its representatives, in a case concerning alleged evasion of anti-dumping duty on aluminum alloy wheels imported from China. The judgment, delivered on July 24, 2025, brings clarity to the complex issue of anti-dumping duty and the validity of certificates of origin.

    Background of the Case

    Neo Wheels Ltd., a manufacturer of alloy wheels, imports semi-finished aluminum alloy wheels from Taiwan. The case arose from allegations that the company had routed imports through Taiwan to evade anti-dumping duty imposed on aluminum alloy wheels originating from China. ​ The anti-dumping duty was provisionally imposed in 2014 and later definitively imposed in 2015 at USD 2.15 per KG.

    The Directorate of Revenue Intelligence (DRI) initiated an investigation, scrutinizing 30 bills of entry filed by Neo Wheels Ltd. between December 5, 2014, and February 5, 2017. ​ The investigation alleged that the company had misdeclared the country of origin and evaded anti-dumping duty amounting to Rs. 4.62 crore. ​ Penalties were also proposed against the company and its representatives.

    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 Kolkata Allows SSI Exemption

    CESTAT Kolkata Allows SSI Exemption

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 26.07.2025

    CESTAT Kolkata Allows SSI Exemption

    The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Kolkata, recently delivered a significant judgment in the case of M/s. Switz Foods Pvt. ​ Ltd. regarding the applicability of Small Scale Industry (SSI) exemption under Notification No. ​ 8/2003-CE. This case highlights critical aspects of excise duty compliance and the interpretation of SSI exemption provisions. ​

    Background of the Case

    M/s. Switz Foods Pvt. ​ Ltd., a manufacturer of cakes, cookies, and pastries under their own brands β€˜Fresh Bake’ and β€˜Bake Shop,’ also undertook job work for the β€˜Monginis’ brand. ​ While they paid excise duty on Monginis-branded goods, they claimed SSI exemption for their Bake Shop products, citing turnover below the threshold limit. ​ However, the Revenue issued a Show Cause Notice (SCN) alleging non-compliance with SSI exemption rules and demanded excise duty along with 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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  • CESTAT Chandigarh Set Aside Customs Duty Demand in PVC Tape Valuation Case

    CESTAT Chandigarh Set Aside Customs Duty Demand in PVC Tape Valuation Case

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 25.07.2025

    CESTAT Chandigarh Set Aside Customs Duty Demand in PVC Tape Valuation Case

    The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Chandigarh, recently delivered a significant judgment in the case of M/s Ad Adhesive Industries & Others vs. Commissioner of Customs, Delhi-IV. This decision, pronounced on July 24, 2025, has far-reaching implications for customs valuation and procedural adherence in adjudication proceedings.

    Background of the Case

    The case revolved around allegations of undervaluation of adhesive tapes imported by M/s Ad Adhesive Industries and M/s Sunbeam Industries. ​ The Directorate of Revenue Intelligence (DRI) claimed that the appellants had misdeclared the value of imported goods, evading customs duty. ​ The investigation relied heavily on statements from employees and a single bill of entry where the transaction value was enhanced. Based on these findings, the Commissioner of Central Excise, Delhi-IV, confirmed the demands, imposed penalties, and ordered the encashment of bank guarantees.

    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 Kolkata Upholds DGFT Clarification

    CESTAT Kolkata Upholds DGFT Clarification

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 25.07.2025

    CESTAT Kolkata Upholds DGFT Clarification

    In a landmark decision, the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Eastern Zonal Bench, Kolkata, has dismissed the appeal filed by the Revenue against M/s India Carbon Ltd, affirming their right to import Raw Petroleum Coke (RPC) for manufacturing Calcined Petroleum Coke (CPC). This judgment highlights the importance of regulatory clarity and adherence to policy guidelines in the import-export domain. ​

    Background of the Case

    M/s India Carbon Ltd, a leading calciner, specializes in manufacturing CPC by processing RPC. ​ CPC is a critical component used in anode making for the aluminum industry. ​ Until October 2019, the import of RPC with any sulphur content was unrestricted. ​ However, following a Supreme Court order, the Central Government amended the import policy, imposing conditions on RPC imports. ​ Licenses for RPC imports were issued by the Directorate General of Foreign Trade (DGFT) based on recommendations from an Expert Committee. ​

    In 2021, M/s India Carbon Ltd was granted a license to import 37,777 M.T. of RPC for anode making in the aluminum industry. ​ However, a portion of the imported RPC was seized by Customs Authorities, citing alleged violations of the import policy due to sulphur content exceeding 3.5%. ​ This led to a series of legal proceedings, culminating in the present appeal 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 Kolkata

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  • CESTAT Mumbai Allows Customs Duty Exemption for Medical Implants

    CESTAT Mumbai Allows Customs Duty Exemption for Medical Implants

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 24.07.2025

    CESTAT Mumbai Allows Customs Duty Exemption for Medical Implants ​

    In a landmark decision, the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Mumbai, has ruled in favor of Smith & Nephew Healthcare Private Limited, allowing their appeal against the denial of customs duty exemption on imported medical implants. This decision, pronounced on July 21, 2025, sets a significant precedent for the interpretation of exemption notifications under the Customs Act, 1962.

    Background of the Case

    Smith & Nephew Healthcare, a leading supplier of orthopedic and medical appliances, had been importing knee and hip implants, among other medical devices, under Customs Tariff Item (CTI) 9021 3100 and 9021 1000. ​ They claimed customs duty exemption under Serial No. ​ 578 of Notification No. ​ 50/2017-Customs dated June 30, 2017, and Notification No. ​ 01/2017-Integrated Tax (Rate) dated June 28, 2017. ​ These exemptions were intended for assistive devices, rehabilitation aids, and other goods for disabled persons. ​

    However, the Directorate of Revenue Intelligence (DRI) alleged that the imported goods were not exclusively used for disabled persons, as required by the exemption notification. ​ Following an investigation, the Commissioner of Customs denied the exemption, demanded differential duty of over Rs. ​ 210 crore, and imposed penalties and fines. ​

    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 Bangalore Upholds ISO Standards in Newsprint Classification

    CESTAT Bangalore Upholds ISO Standards in Newsprint Classification

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 23.07.2025

    CESTAT Bangalore Upholds ISO Standards in Newsprint Classification

    In a landmark ruling that reinforces the importance of adhering to international testing standards in customs classification, the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Bangalore, in Final Order No. 21063/2025, allowed the appeal of M/s. Malayala Manorama Co. Ltd., setting aside a duty demand of β‚Ή30.44 lakhs on imported newsprint.

    Background of the Case

    The dispute arose from the import of 243.83 metric tonnes of paper in reels by Malayala Manorama under Bill of Entry No. 100946 dated 18.05.1999, declaring the goods as β€œNewsprint” falling under Customs Tariff Heading (CTH) 4801.80, which attracted concessional or nil rate of duty.

    Customs authorities initially allowed clearance on a provisional basis. However, laboratory testing later indicated that the mechanical wood pulp (MWP) content in the imported paper was less than 65%, disqualifying it as “newsprint” under Chapter Note 3 to Chapter 48 of the Customs Tariff Act. Consequently, the goods were reclassified under CTH 480260/480290, and a differential duty of β‚Ή30.44 lakhs was demanded.

    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 Delhi-Customs Cannot Alter FOB Value to Deny Export Incentives

    CESTAT Delhi-Customs Cannot Alter FOB Value to Deny Export Incentives

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 23.07.2025

    CESTAT Delhi-Customs Cannot Alter FOB Value to Deny Export Incentives

    The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Principal Bench, New Delhi, allowed six appeals challenging the re-determination of Free on Board (FOB) export values and the resultant denial of export incentives. The judgment strikes at the root of Customs’ authority to modify transaction values between exporters and foreign buyers.

    Background of the Case

    Six appellants, including M/s Mahir Fashions (P) Ltd., Naaz Impex, Almas Creations, and individuals, were issued a common Show Cause Notice dated 27.02.2019 by the Directorate of Revenue Intelligence (DRI) alleging overvaluation of readymade garments exported under Drawback and DEPB schemes.

    The Commissioner of Customs, ICD, Tughlakabad passed an Order-in-Original (No. 15/2011 dated 24.03.2011) which:

    • Rejected declared FOB invoice values of exports.
    • Re-determined lower FOB values.
    • Ordered recovery of excess incentives (drawback and DEPB).
    • Imposed confiscation of goods and penalties totaling several crores.
    • Held the exported goods liable for confiscation under Section 113 of the Customs Act, 1962 and penalties under Section 114.

    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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