ALS

π€πšππ«π’π€πšπš π‹πžπ πšπ₯ π’πžπ«π―π’πœπžπ¬ (𝐀𝐋𝐒)

Tag: #CESTATChandigarh

  • CESTAT Chandigarh Sets Aside Penalties in Customs Under-Valuation

    CESTAT Chandigarh Sets Aside Penalties in Customs Under-Valuation

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 17.09.2025

    CESTAT Chandigarh Sets Aside Penalties in Customs Under-Valuation ​ ​

    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 significant decision, the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Chandigarh, has set aside penalties imposed on two appellants, in a case involving allegations of under-valuation and mis-declaration of imported goods by M/s Prince International. ​ The judgment, delivered by Hon’ble, Member (Judicial), highlights the importance of evidence-based findings and the proper application of legal provisions in customs cases.

    Background of the Case

    The case originated from an investigation by the Directorate of Revenue Intelligence (DRI) into M/s Prince International, Ludhiana, which was accused of evading customs duty by under-valuing and mis-declaring bicycle parts and pumps imported from China. ​ Following the investigation, penalties were imposed on the appellants under Section 112(a) and 112(b) of the Customs Act, 1962, for allegedly aiding and abetting the importer in the evasion of customs duty.

    Source: CESTAT Chandigarh

    Disclaimer

    Handy Download:

    ALO DocumentDownload

    Write to us at office@aadrikaalaw.com

    Tel: +91-11-4999 2707 I +91-9999005379

    www.aadrikaalaw.com

  • CESTAT Chandigarh- Service Tax Refund Granted for Rice Export Under Agricultural Produce Exemption

    CESTAT Chandigarh- Service Tax Refund Granted for Rice Export Under Agricultural Produce Exemption

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 08.09.2025

    CESTAT Chandigarh- Service Tax Refund Granted for Rice Export Under Agricultural Produce Exemption​ ​ ​ ​ ​

    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 significant ruling, the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Chandigarh, has delivered a judgment in favor of M/s Bharat Industrial Enterprises Ltd., Taraori, Karnal, Haryana, in the matter of Service Tax Appeal No. ​ 377 of 2011. ​ This case highlights the interpretation of the term “agricultural produce” and its implications for service tax exemptions under Notification No. ​ 13/2003-ST.

    Background of the Case ​

    M/s Bharat Industrial Enterprises Ltd. is engaged in the cultivation of paddy and the sale/export of rice obtained by de-husking paddy. ​ During the financial year 2007-08, the company paid service tax under the Reverse Charge Mechanism for services availed from commission agents for export and domestic sales. Subsequently, they filed a refund claim of Rs. ​ 13,63,497/- on the grounds that the commission services were exempt from service tax under Notification No. ​ 13/2003-ST dated 20.06.2003. ​

    While the Original Authority granted the refund, the Commissioner of Central Excise, Panchkula, disallowed the claim through an Order-in-Revision dated 30.11.2010, directing the appellants to deposit the refunded amount along with interest at 13% per annum. ​ This led to the present appeal before the CESTAT.

    Source: CESTAT Chandigarh

    Disclaimer

    Handy Download:

    ALO DocumentDownload

    Write to us at office@aadrikaalaw.com

    Tel: +91-11-4999 2707 I +91-9999005379

    www.aadrikaalaw.com

  • CESTAT Chandigarh- No Misdeclaration or Undervaluation in Holi Balloon Imports

    CESTAT Chandigarh- No Misdeclaration or Undervaluation in Holi Balloon Imports

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 06.08.2025

    CESTAT Chandigarh- No Misdeclaration or Undervaluation in Holi Balloon Imports

    In a pivotal decision, the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Chandigarh, dismissed an appeal filed by the Commissioner of Customs, Ludhiana, against M/s Goyal Brothers. The case revolved around the classification and valuation of imported goods, including balloons used during Holi and trolley bags. ​ This ruling not only clarifies the interpretation of Customs Tariff Headings but also reinforces the importance of adhering to valuation rules and principles of natural justice. ​

    Case Overview

    M/s Goyal Brothers imported balloons and trolley bags, declaring their classification under Customs Tariff Headings (CTH) 9505 9090 and 4202 1220, respectively. ​ While the quantities declared in one Bill of Entry matched the actual goods, discrepancies were noted in another Bill of Entry. The Customs Department reclassified the balloons under CTH 9503 0020 (toys), imposed penalties, and re-determined the value of the goods. ​ However, the Commissioner (Appeals) overturned this decision, leading to the Revenue’s 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 Chandigarh

    Disclaimer

    Handy Download:

    ALO DocumentDownload

    Write to us at office@aadrikaalaw.com

    Tel: +91-11-4999 2707 I +91-9999005379

    www.aadrikaalaw.com

  • 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

    Disclaimer

    Handy Download:

    ALO DocumentDownload

    Write to us at office@aadrikaalaw.com

    Tel: +91-11-4999 2707 I +91-9999005379

    www.aadrikaalaw.com

  • CESTAT Chandigarh Sets Aside Drawback Recovery and Penalty

    CESTAT Chandigarh Sets Aside Drawback Recovery and Penalty

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 21.07.2025

    CESTAT Chandigarh Sets Aside Drawback Recovery and Penalty

    Background of the Case

    The case revolves around allegations of fraudulent claim of duty drawback and DEPB credits by three exporters who allegedly mis-declared goods as high-value items like gear cutting tools of cobalt-bearing high-speed steel and heat-resistant rubber tension tapes through the Ludhiana port.

    The Directorate of Revenue Intelligence (DRI), Amritsar, initiated investigations linking the appellants to a broader fraud syndicate allegedly operated shell firms like Jyoti Steel and Krishna Hardware. The appellants were accused of receiving fictitious invoices from these shell companies to claim inflated export benefits.

    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

    Disclaimer

    Handy Download:

    ALO DocumentDownload

    Write to us at office@aadrikaalaw.com

    Tel: +91-11-4999 2707 I +91-9999005379

    www.aadrikaalaw.com

  • CESTAT Chandigarh Sets Aside Warehouse License Cancellation

    CESTAT Chandigarh Sets Aside Warehouse License Cancellation

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 16.07.2025

    CESTAT Chandigarh Sets Aside Warehouse License Cancellation

    In a significant ruling favoring the rights of bonded warehouse license holders, the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Chandigarh Bench, has set aside the cancellation of the Public Bonded Warehouse License of M/s Ajay Wines & Spirits, while upholding a monetary penalty of β‚Ή4 lakhs under Section 117 of the Customs Act, 1962.

    Background of the Case

    • M/s Ajay Wines & Spirits was operating under a Public Bonded Warehouse License No. 08/2023, granted under Section 57 of the Customs Act.
    • Two separate stock verifications conducted in April 2024 revealed shortages of imported liquor cases:
      • 04.04.2024: 339 cases found short; duty of β‚Ή17.14 lakhs was deposited.
      • 23.04.2024: Additional shortages observed related to stock of M/s Castle Spirits Pvt. Ltd.
    • A Show Cause Notice was issued proposing:
      • Cancellation of the warehouse license under Section 58B
      • Penalty under Section 117 for contravention of warehouse regulations

    The Principal Commissioner of Customs, Ludhiana, vide Order-in-Original dated 21.05.2025, imposed the maximum penalty and cancelled the warehouse license of the appellant.

    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

    Disclaimer

    Handy Download:

    ALO DocumentDownload

    Write to us at office@aadrikaalaw.com

    Tel: +91-11-4999 2707 I +91-9999005379

    www.aadrikaalaw.com

  • 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

    Disclaimer

    Handy Download:

    ALO DocumentDownload

    Write to us at office@aadrikaalaw.com

    Tel: +91-11-4999 2707 I +91-9999005379

    www.aadrikaalaw.com

  • CESTAT Chandigarh Dismisses Customs Appeals in Metal Scrap Valuation

    CESTAT Chandigarh Dismisses Customs Appeals in Metal Scrap Valuation

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 02.07.2025

    CESTAT Chandigarh Dismisses Customs Appeals in Metal Scrap Valuation

    The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) Chandigarh, via Final Order Nos. 60650–60742/2025 dated 30.06.2025, dismissed 93 appeals filed by the Revenue against M/s Vardhman Sales Agency and reaffirmed the principles of natural justice and lawful valuation under the Customs Act, 1962.

    Background of the Case

    • M/s Vardhman Sales Agency, an importer based in Faridabad, imported metal scrap through 93 Bills of Entry at ICD Piyala.
    • The declared transaction value was β‚Ή35.56 crore with self-assessed customs duty of β‚Ή7.70 crore.
    • Customs authorities enhanced the assessable value unilaterally based on NIDB (National Import Database) data, raising the duty to β‚Ή9.38 crore.
    • Although the importer initially paid the enhanced duty under protest to avoid demurrage, they challenged the re-assessment before the Commissioner (Appeals).

    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

    Disclaimer

    Handy Download:

    ALO DocumentDownload

    Write to us at office@aadrikaalaw.com

    Tel: +91-11-4999 2707 I +91-9999005379

    www.aadrikaalaw.com

  • CESTAT Chandigarh- Customs Must Pay Interest on Late Refunds

    CESTAT Chandigarh- Customs Must Pay Interest on Late Refunds

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 13.06.2025

    CESTAT Chandigarh- Customs Must Pay Interest on Late Refunds

    The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chandigarh has delivered a pivotal ruling in favor of leading textile exporters M/s Oswal Woolen Mills Ltd. and Monte Carlo Fashions Ltd., dismissing five appeals filed by the Commissioner of Customs, Ludhiana. The matter involved claims for interest on delayed refund of customs duties wrongly paid on imports of polyester blankets from China under protest.

    The Tribunal upheld that the interest is payable from three months after the date of the original refund application, and not from the date of a later tribunal or appellate decision, setting a clear precedent.

    Case Background

    • The respondents had imported polyester mink blankets (CTH 63014000) and paid Countervailing Duty (CVD) under protest.
    • They argued that CVD was not leviable as such domestic products were exempt under Central Excise Notification No. 30/2004-CE dated 09.07.2004.
    • Though customs duty was paid at the time of import, refund claims were filed following a favorable CESTAT order dated 02.04.2019.
    • The department later sanctioned the refund but denied interest, contending it was processed within three months of the tribunal’s decision.

    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

    Disclaimer

    Handy Download:

    ALO DocumentDownload

    Write to us at office@aadrikaalaw.com

    Tel: +91-11-4999 2707 I +91-9999005379

    www.aadrikaalaw.com

  • CESTAT Chandigarh Rejects Customs Valuation Based on DRI Alert

    CESTAT Chandigarh Rejects Customs Valuation Based on DRI Alert

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 24.05.2025

    CESTAT Chandigarh Rejects Customs Valuation Based on DRI Alert

    The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Chandigarh Bench quashed customs duty enhancements and denial of exemptions imposed on importers Garg Impex and Sedna Impex India Pvt. Ltd. The Tribunal held that the valuation enhancement solely based on a DRI alert and denial of exemption under multiple customs notifications was legally unsustainable.

    Background of the Case

    • Appellants: M/s Garg Impex & M/s Sedna Impex India Pvt. Ltd.
    • Goods: Polyester Knitted Fabrics imported from China
    • Period: April 2012 to October 2013
    • Customs Actions:
      • Enhanced declared value using DRI Alert (F.No. 23/13/2011-DZU dated 09.05.2011)
      • Denied exemption under:
        • Notification No. 30/2004-CE (CVD exemption)
        • Notification No. 72/2005-Cus (as amended) (preferential duty)
        • Notification No. 151/1982-Cus (inland haulage cost rebate)

    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

    Disclaimer

    Handy Download:

    ALO DocumentDownload

    Write to us at office@aadrikaalaw.com

    Tel: +91-11-4999 2707 I +91-9999005379

    www.aadrikaalaw.com