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Tag: #CESTATAhmedabad

  • CESTAT Ahmedabad Sets Aside IGST Demand and Penalties

    CESTAT Ahmedabad Sets Aside IGST Demand and Penalties

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 24.09.2025

    CESTAT Ahmedabad Sets Aside IGST Demand and Penalties

    This Article has been written by Shri Ravi Shekhar Jha, Advocate based in New Delhi. The views expressed are based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.

    In a landmark decision, the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Ahmedabad, has delivered justice to AMNS Ports Hazira Ltd. (formerly Essar Bulk Terminal Pvt. ​ Ltd.) and its employee, Appellant, by setting aside the IGST demand of β‚Ή12.12 crore and associated penalties imposed by the Commissioner of Customs, Ahmedabad. ​ This ruling marks a significant victory for the appellants, who were embroiled in a dispute over the import of capital goods under the Export Promotion Capital Goods (EPCG) scheme. ​

    Background of the Case

    AMNS Ports Hazira Ltd., a provider of port services, imported capital goods such as Ship Unloader, Barge, and Railmount under EPCG Authorization No. ​ 5230026626 dated January 21, 2019. ​ The company availed exemptions from Basic Customs Duty (BCD) and IGST under Customs Notification No. ​ 16/2015-Cus, as amended by Notification No. ​ 79/2017-Cus. The authorization required the company to fulfill an export obligation equivalent to six times the duty saved within six years, i.e., by January 20, 2025. ​

    The dispute arose when the Revenue alleged that the company had availed IGST exemption despite receiving payments in rupee terms for services rendered, which, as per the amended notification, disqualified them from claiming the exemption. ​ The Commissioner of Customs imposed a demand for IGST, confiscated the imported goods, and levied penalties on both the company and its employee.

    Source: CESTAT Ahmedabad

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  • CESTAT Ahmedabad Partially Relaxes Provisional Release Conditions in SEZ Import Dispute

    CESTAT Ahmedabad Partially Relaxes Provisional Release Conditions in SEZ Import Dispute

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 19.08.2025

    CESTAT Ahmedabad Partially Relaxes Provisional Release Conditions in SEZ Import Dispute ​ ​ ​ ​

    In a significant ruling, the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), West Zonal Bench at Ahmedabad, has partially relaxed the conditions imposed by the Commissioner of Customs, Kandla, for the provisional release of goods seized from a Special Economic Zone (SEZ). The case, involving H.R. ​ Enterprises, highlights the complexities of customs law, SEZ regulations, and the balance between safeguarding revenue and ensuring fair treatment for importers.

    Background of the Case

    H.R. Enterprises, an importer of goods, had brought in 16 consignments of fabrics declared as “leftover of tarpaulin fabrics mix size and GSM” from China. ​ These goods were stored in the warehouse of M/s. ​ Cargo Care Agency, a SEZ unit in Kandla. ​ However, the Directorate of Revenue Intelligence (DRI) flagged the consignments, alleging misdeclaration of the goods’ nature and classification. ​ Following an investigation, the Customs Department seized the goods, citing potential misclassification and undervaluation, which could lead to revenue loss. ​

    The Commissioner of Customs allowed provisional release of the goods but imposed stringent conditions, including:

    1. Submission of a bond equal to the value of goods (β‚Ή1.93 crore). ​
    2. Submission of a bank guarantee of β‚Ή3.12 crore, covering the differential duty and potential penalties. ​

    H.R. Enterprises challenged these conditions before the Tribunal, arguing that they were onerous and would cripple their business.

    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 Ahmedabad Quashes β‚Ή20 Lakh Penalty on CHA

    CESTAT Ahmedabad Quashes β‚Ή20 Lakh Penalty on CHA

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 16.08.2025

    CESTAT Ahmedabad Quashes β‚Ή20 Lakh Penalty on CHA ​ ​ ​ ​

    In a significant judgment, the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Ahmedabad, has set aside the penalty of β‚Ή20,00,000 imposed on Appellant, Manager of Customs House Agent (CHA) firm M/s. Shree Maruti Shipping Services. ​ The decision, delivered by Hon’ble Judicial, highlights the importance of adhering to principles of natural justice and the need for cogent evidence in penalty proceedings under the Customs Act, 1962.

    Background of the Case

    The case originated from an investigation by the Directorate of Revenue Intelligence (DRI), Mumbai, into the import of 208 MT of HDPE valued at β‚Ή54,07,418 under an allegedly forged advance license. ​ The investigation revealed discrepancies in the import documents, including the use of a non-existent firm, M/s. ​ Roha Dye Chem Pvt Ltd, as the importer. ​ The CHA firm, M/s. ​ Shree Maruti Shipping Services, was involved in processing the customs clearance documents. ​

    Initially, the Commissioner of Customs, Kandla, imposed a penalty of β‚Ή5,00,000 on Appellant under Section 112(b) of the Customs Act, 1962. ​ However, after multiple rounds of adjudication and remand proceedings, the penalty was enhanced to β‚Ή20,00,000 under Section 112(a) in the impugned order dated 24th September 2012. ​ Aggrieved by this decision, Appellant filed an appeal before the 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 Ahmedabad

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  • CESTAT Ahmedabad dismissed the allegations of undervaluation

    CESTAT Ahmedabad dismissed the allegations of undervaluation

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 01.08.2025

    CESTAT Ahmedabad dismissed the allegations of undervaluation

    In a landmark decision, the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), West Zonal Bench at Ahmedabad, has ruled in favor of M/s Ruchi Enterprise, dismissing allegations of undervaluation of imported PVC Flex Sheets. The case, which has been under scrutiny for years, highlights critical aspects of customs valuation, evidentiary standards, and procedural fairness.

    Background of the Case

    M/s Ruchi Enterprise imported consignments of PVC Flex Sheets from China at Kandla Port. ​ The Directorate of Revenue Intelligence (DRI) intercepted one of the consignments, alleging undervaluation and short payment of customs duty. ​ Following investigations, the DRI issued a show cause notice proposing confiscation of goods, demanding differential duty of β‚Ή12,93,381 along with interest and penalties under Sections 112 and 114A of the Customs Act, 1962. ​

    The adjudicating authority upheld the charges, imposing penalties and rejecting the declared transaction value. Subsequent appeals to the Commissioner (Appeals) and the Tribunal led to a series of legal proceedings, culminating in the present 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 Ahmedabad

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  • 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 Ahmedabad- SEZ Re-Export Goods Not Liable for Confiscation

    CESTAT Ahmedabad- SEZ Re-Export Goods Not Liable for Confiscation

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 10.07.2025

    CESTAT Ahmedabad- SEZ Re-Export Goods Not Liable for Confiscation

    The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Ahmedabad, vide Final Order No. 10546/2025 dated 09.07.2025, delivered by Hon’ble Judicial Member, quashed the confiscation and penalty proceedings initiated against Flamingo Logistics, a warehousing service provider operating in the Kandla Special Economic Zone (SEZ).

    Case Background

    Flamingo Logistics, acting on behalf of its client M/s. M A Value Smart Trading Limited (Hong Kong), filed four warehousing bills of entry with SEZ Customs for storing consignments including hard disks, mini tower computer cases, and motherboards. Upon examination, Customs authorities observed dust and scratches on the goods and, based on HP India’s opinion, classified them as β€œused” or β€œsecond-hand” goods.

    Relying on DGFT Notification No. 35(RE-2012)/2009-2014 and para 2.31 of the Foreign Trade Policy (FTP), Customs seized the goods citing import restrictions on second-hand items. While permitting re-export, the adjudicating authority imposed fines and penalties under Sections 111(d) and (m) of the Customs Act, 1962 on Flamingo Logistics.

    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 Ahmedabad Allows Cross-Examination in Customs Dispute

    CESTAT Ahmedabad Allows Cross-Examination in Customs Dispute

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 09.07.2025

    CESTAT Ahmedabad Allows Cross-Examination in Customs Dispute

    The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Ahmedabad has ruled in favour of Kudrat Corporation, allowing their request for cross-examination of departmental witnesses in a customs adjudication proceeding.

    This judgment fortifies the principle that adjudicating authorities cannot deny cross-examination merely on assumptions, especially when statements, technical reports, or letters are relied upon in a Show Cause Notice (SCN).

    Case Background

    The dispute arose from the denial of cross-examination of 11 witnesses by the Principal Commissioner during the adjudication of a Show Cause Notice dated 03 July 2019, which was issued under Section 108 of the Customs Act, 1962. The Principal Commissioner rejected the request on the ground that no new facts were likely to emerge, and that the cross-examination would only cause delays.

    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 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 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 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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