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Tag: #CESTAT

  • 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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  • 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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  • CESTAT Delhi- Upholds Exemption for HIV Viral Load Kits and Quashes Inflated Customs Valuation

    CESTAT Delhi- Upholds Exemption for HIV Viral Load Kits and Quashes Inflated Customs Valuation

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 26.06.2025

    CESTAT Delhi- Upholds Exemption for HIV Viral Load Kits and Quashes Inflated Customs Valuation

    The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Delhi has granted relief to M/s Cepheid India Pvt. Ltd. by allowing exemption from customs duties for their imported HIV-1 Viral Load Test Kits and setting aside the re-determined assessable value imposed by the Principal Commissioner of Customs, New Delhi. The decision was delivered on June 25, 2025, by Principal Bench.

    Background:

    Cepheid India, a subsidiary of the California-based Cepheid Group, imported molecular diagnostic equipment and test kits including the HIV-1 Viral Load (VL) kits under various Bills of Entry between August 2016 and April 2021. The customs department denied exemption benefits and alleged undervaluation based on related party imports, leading to reassessment under Rule 12 of the Customs Valuation Rules, 2007.

    The Principal Commissioner’s order rejected exemption claims under multiple notifications including:

    • Notification No. 12/2012-Cus. (Sr. No. 148)
    • Notification No. 50/2017-Cus. (Sr. No. 167)
    • IGST Rate Notification No. 1/2017-IT (Rate), Sr. No. 180

    Additionally, a penalty under Section 114A and interest under Section 28AA of the Customs Act, 1962 was 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 Delhi

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  • CESTAT Delhi Sets Aside Customs Valuation Over Silk Fabric Imports

    CESTAT Delhi Sets Aside Customs Valuation Over Silk Fabric Imports

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 25.06.2025

    CESTAT Delhi Sets Aside Customs Valuation Over Silk Fabric Imports

    The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Delhi, allowed the appeal of M/s. Elegant International by setting aside a customs demand raised by the adjudicating authority. The Commissioner had earlier rejected the declared transaction value of imported Chinese silk fabrics under Rule 10A of the Customs Valuation (Determination of Price of Imported Goods) Rules, 1988, alleging under-invoicing. However, the Tribunal found the basis of the valuation untenable due to lack of direct evidence against the appellant.

    Case Background

    M/s. Elegant International had imported silk fabrics from Zhejiang Cathaya International, China, between 2003 and 2005 via 37 Bills of Entry. The Commissioner, Central Excise (Adjudication), New Delhi, passed an order dated 6 February 2009 alleging that the declared transaction values were suppressed. The valuation was rejected under Rule 10A, and the value was reassessed under Rule 5 of the 1988 Valuation Rules. A differential customs duty demand, redemption fine, and penalty under Section 114A of the Customs Act, 1962, followed.

    The entire case against the appellant rested on evidence recovered during DRI investigations against other importers (M/s. Purnima Enterprises, M/s. Om Fabrics, and M/s. Vedant Enterprises), where duplicate invoices were allegedly used to understate import value.

    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- Aluminium Profiles as Machinery Parts, Not Structures

    CESTAT Mumbai- Aluminium Profiles as Machinery Parts, Not Structures

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 25.06.2025

    CESTAT Mumbai- Aluminium Profiles as Machinery Parts, Not Structures

    Background

    M/s Classic Stripes Pvt. Ltd., a leading manufacturer of screen-printed self-adhesive PVC stickers, imported printing frame profiles from Germany for use in screen-printing machines. These profiles were custom-fabricated for integration into existing machinery at their factory.

    • The company classified the imported goods under CTI 8443 9990 (parts of printing machinery).
    • Customs authorities reclassified the goods under CTI 7610 9090 (other aluminium structures) and levied duties and penalties.
    • The department also imposed a redemption fine of β‚Ή2,50,000 and penalty of β‚Ή50,000, while confirming differential duty of β‚Ή78,175.

    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 Allows Exemption on Flexi Tanks

    CESTAT Ahmedabad Allows Exemption on Flexi Tanks

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 24.06.2025

    CESTAT Ahmedabad Allows Exemption on Flexi Tanks

    The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Ahmedabad Bench has allowed the appeals filed by Goodrich Maritime Pvt. Ltd. and its Managing Director, Venkatraman Thyagarajan, against the denial of exemption under Notification No. 104/94-Cus dated 16.03.1994 on imported Flexi Tank Containers.

    The core issue revolved around whether Flexi Tank Containers, which are typically used once for transporting liquid cargo and then exported, qualify as “durable containers” to claim customs duty exemption.

    Background of the Case

    • The Department denied exemption benefits to Goodrich Maritime, asserting that Flexi Tank Containers are not durable since they are used only once and not repeatedly.
    • Additional objections were raised regarding:
      • Whether the importer themselves must re-export the containers.
      • Whether drawback claims by exporters using the containers affect eligibility.

    The Commissioner of Customs, Mundra, rejected the exemption and imposed a penalty on the Managing Director under Section 112 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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  • CESTAT Chennai Clarifies Finished Leather Export Criteria

    CESTAT Chennai Clarifies Finished Leather Export Criteria

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 24.06.2025

    CESTAT Chennai Clarifies Finished Leather Export Criteria

    The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai, allowed the appeal of M/s Nabisha Leathers and set aside the imposition of export duty, penalty, and fine imposed for alleged export of β€œunfinished leather.” The case revolved around a nuanced interpretation of DGFT’s Public Notice on finished leather norms and marks a vital precedent on how such technical regulations should be interpreted.

    Background of the Case

    • Nabisha Leathers filed a shipping bill in March 2010 to export 37 cartons of β€œGoat Shoe Suede Upper Leather.”
    • A leather expert from Customs flagged 13 cartons of grey-coloured leather, suspecting non-compliance with DGFT Public Notice No. 21/2009-14.
    • A sample was sent to the Central Leather Research Institute (CLRI), which reported non-compliance citing “absence of snuffing” on the grain as the reason.
    • Based on the CLRI report, Customs:
      • Confiscated the consignment under Section 113(d) of the Customs Act, 1962.
      • Levied 60% export duty on the consignment.
      • Imposed a penalty of β‚Ή10,000.
      • Allowed redemption on fine of β‚Ή50,000.

    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 Delhi Upholds 12% IGST on Lithium-Ion Batteries Used in Mobile Phone Manufacturing

    CESTAT Delhi Upholds 12% IGST on Lithium-Ion Batteries Used in Mobile Phone Manufacturing

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 24.06.2025

    CESTAT Delhi Upholds 12% IGST on Lithium-Ion Batteries Used in Mobile Phone Manufacturing

    The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Delhi Principal Bench, delivered a comprehensive judgment on 23rd June 2025 in Samsung India Electronics Pvt. Ltd. v. Principal Commissioner of Customs, resolving a long-standing dispute over the correct IGST rate applicable on lithium-ion batteries imported for use in the manufacture of mobile phones.

    Key Issue

    The central issue before the Tribunal was whether lithium-ion batteries imported by Samsung India and other mobile manufacturers for use in the manufacture of mobile phones are to be taxed at:

    • 12% IGST under Serial No. 203 of Schedule II (as claimed by Samsung India),
      or
    • 28% or 18% IGST under Serial No. 139 of Schedule IV and 376AA of Schedule III, respectively (as claimed by the Department).

    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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