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Tag: #CESTATDelhi

  • CESTAT Delhi Emphasized that 100% Export-Oriented Units (EOUs) are exempt from safeguard duty

    CESTAT Delhi Emphasized that 100% Export-Oriented Units (EOUs) are exempt from safeguard duty

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 18.09.2025

    CESTAT Delhi Emphasized that 100% Export-Oriented Units (EOUs) are exempt from safeguard duty​ ​

    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), New Delhi, has ruled in favor of M/s Alpex Solar Pvt. Ltd., a 100% Export-Oriented Unit (EOU), exempting them from the imposition of safeguard duty under Section 8B(2A) of the Customs Tariff Act, 1975. ​ This judgment, delivered on September 16, 2025, sets a significant precedent for EOUs across India.

    Background of the Case

    Alpex Solar Pvt. ​ Ltd., engaged in the manufacturing and export of solar panels, imported Multi Silicon Solar Cells from Taiwan in 2018. ​ The company filed Bills of Entry at a nil rate of Basic Customs Duty (BCD) and paid IGST at 5%, availing exemptions under Notification No. 24/2005-Cus. However, in March 2019, the Special Investigation and Intelligence Branch observed that the company had not paid safeguard duty at 25%, imposed under Notification No. ​ 1/2018-(SG). ​ A show-cause notice was issued, alleging that the goods imported were of Taiwanese origin, which did not qualify for exemption under Notification No. ​ 19/2016-Cus (NT). ​

    The Principal Commissioner of Customs confirmed the demand for safeguard duty, IGST interest, and penalties, leading Alpex Solar Pvt. ​ Ltd. to challenge the order before CESTAT.

    Source: CESTAT Delhi

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  • CESTAT Delhi- Customs authorities cannot deny duty exemptions when export obligations are certified as fulfilled by the DGFT

    CESTAT Delhi- Customs authorities cannot deny duty exemptions when export obligations are certified as fulfilled by the DGFT

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 16.09.2025

    CESTAT Delhi- Customs authorities cannot deny duty exemptions when export obligations are certified as fulfilled by the DGFT ​ ​

    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.

    ​​

    The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Principal Bench, New Delhi, recently delivered a significant judgment in the case of Svam Toyal Packaging Industries Pvt. ​ Ltd. vs. Principal Commissioner of Customs (Import), ICD, Tughlakabad, New Delhi. ​ This case, which revolved around the classification of imported goods under the Advance Authorization Scheme, has far-reaching implications for importers and exporters operating under similar schemes. ​

    Background of the Case ​

    Svam Toyal Packaging Industries Pvt. ​ Ltd., a manufacturer and exporter of aluminum foils used in pharmaceutical packaging, had obtained eight Advance Authorizations (AAs) from the Directorate General of Foreign Trade (DGFT). ​ These authorizations allowed duty-free import of raw materials, including aluminum foil (50 MIC Β± 10%), under the condition that the company fulfilled its export obligations. ​

    The dispute arose when the Customs Department alleged that the imported goods were misclassified under Customs Tariff Heading (CTH) 7607 19 91 instead of CTH 7607 11 90. ​ The department argued that this misclassification rendered the imports ineligible for duty exemption under Notification No. ​ 18/2015-Cus. Consequently, a demand for differential customs duty of β‚Ή21.43 crore, along with interest and a penalty of β‚Ή50 lakh, was raised.

    Source: CESTAT Delhi

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  • CESTAT Delhi- The mandatory procedure under Section 138B of the Customs act was not followed by the Customs

    CESTAT Delhi- The mandatory procedure under Section 138B of the Customs act was not followed by the Customs

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 13.09.2025

    CESTAT Delhi- The mandatory procedure under Section 138B of the Customs act was not followed by the Customs ​ ​

    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), Principal Bench, New Delhi, has set aside a penalty of Rs. 25 lakhs imposed on Appellant, the former Managing Director of M/s Safetag International, under Section 114 of the Customs Act, 1962. ​ This judgment highlights the importance of adhering to procedural safeguards under Section 138B of the Customs Act when relying on statements recorded during investigations. ​

    Background of the Case

    The case originated from allegations that M/s Safetag International fraudulently availed duty drawback of Rs. ​ 1,03,67,746/- by inflating the value of exported goods and failing to deliver them to the declared destination, Russia. ​ Following investigations by the Directorate of Revenue Intelligence, a show cause notice was issued to seven noticees, including Appellant. ​ The Adjudicating Authority imposed penalties on M/s Safetag International and its Managing Director, Appellant, citing his alleged involvement in the fraudulent scheme.

    Source: CESTAT Delhi

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  • CESTAT Delhi Sets Aside Penalties on Customs Broker in Misclassification

    CESTAT Delhi Sets Aside Penalties on Customs Broker in Misclassification

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 05.09.2025

    CESTAT Delhi Sets Aside Penalties on Customs Broker in Misclassification​ ​ ​ ​ ​

    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 & Service Tax Appellate Tribunal (CESTAT), New Delhi, has set aside penalties imposed on M/s PS Bedi & Co (P) Ltd., a Customs Broker, under Sections 112(a)(ii) and 114AA of the Customs Act, 1962. ​ This decision, delivered on August 5, 2025, highlights the importance of procedural fairness and the role of Customs Brokers in import transactions. The case revolved around alleged misclassification of imported goods, leading to penalties imposed by the Principal Commissioner of Customs. ​

    Background of the Case

    The appellant, M/s PS Bedi & Co (P) Ltd., was penalized for filing Bills of Entry for AMR/Non-AMR Water Flow Meters imported by M/s SPML India Ltd. from Israel. The Directorate of Revenue Intelligence (DRI) alleged that the goods were misclassified under Customs Tariff Item (CTI) 9026 10 10 instead of CTI 9028 20 00, resulting in revenue loss. Despite having Certificates of Origin indicating CTI 9028, the Customs Broker filed the Bills of Entry based on the import documents provided by the importer. ​

    A show cause notice was issued, accusing the Customs Broker of deliberate misclassification and suppression of material facts, making the goods liable for confiscation under Section 111(m) of the Customs Act. ​ Penalties were imposed under Sections 112(a)(ii) and 114AA of the Customs Act.

    Source: CESTAT Delhi

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  • CESTAT Delhi- DRI and Commissioner of Customs cannot declare DEPB scrips issued by DGFT as null and void

    CESTAT Delhi- DRI and Commissioner of Customs cannot declare DEPB scrips issued by DGFT as null and void

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 28.08.2025

    CESTAT Delhi- DRI and Commissioner of Customs cannot declare DEPB scrips issued by DGFT as null and void​ ​ ​ ​ ​

     

    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 & Service Tax Appellate Tribunal (CESTAT), New Delhi, has set aside penalties and duty demands imposed on 21 appellants, including importers, bank officials, and a chartered accountant, in a case involving Duty Entitlement Passbook (DEPB) scrips. ​ This judgment highlights critical legal principles and clarifies the scope of authority under the Customs Act, Foreign Trade (Development and Regulation) Act, and FEMA regulations.

    Background of the Case

    The Directorate of Revenue Intelligence (DRI) initiated investigations against exporters accused of misusing export promotion schemes, such as DEPB and drawback, by filing false declarations. ​ The DEPB scrips, issued by the Directorate General of Foreign Trade (DGFT), were allegedly obtained fraudulently and later sold to importers who used them to import goods. ​ The DRI concluded that these scrips were ab initio null and void, leading to demands for customs duty and penalties on importers, bank officials, and a chartered accountant.

    Source: CESTAT Delhi

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  • CESTAT Delhi Sets Aside Revocation of Customs Broker Licence

    CESTAT Delhi Sets Aside Revocation of Customs Broker Licence

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 25.08.2025

    CESTAT Delhi Sets Aside Revocation of Customs Broker Licence​ ​ ​

    In a significant decision, the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi, has set aside the revocation of the customs broker license of M/s Brightline (C&F) Agency. The Tribunal also overturned the forfeiture of the security deposit and the penalty imposed on the agency, providing much-needed relief to the appellant. ​

    Background of the Case

    The case arose from an order passed by the Commissioner of Customs (Airport & General), New Delhi, on June 15, 2021. ​ The order alleged that M/s Brightline had violated Regulation 10(n) of the Customs Broker Licensing Regulations (CBLR), 2018, by filing shipping bills for exporters who were later found to be non-existent. ​ This led to the revocation of their customs broker license, forfeiture of their security deposit of β‚Ή75,000, and the imposition of a β‚Ή50,000 penalty. ​ The allegations stemmed from an analysis conducted by the Directorate General of Analytics & Risk Management (DGARM), which flagged certain exporters as “risky” based on GST registration data. ​ Among the 89 exporters identified, verification reports were provided for only four, and M/s Brightline was accused of handling consignments for these entities.

    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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  • PayTM gets Duty benefits and Penalty waiver relief from CESTAT

    PayTM gets Duty benefits and Penalty waiver relief from CESTAT

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 14.08.2025

    PayTM gets Duty benefits and Penalty waiver relief from CESTAT

    The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) recently delivered a significant judgment in the case of One97 Communications Limited (Paytm) regarding the import of Paytm Soundbox Versions 1 and 2. The case revolved around whether these devices were eligible for a concessional rate of Basic Customs Duty (BCD) under Serial No. ​ 20 of Notification No. ​ 57/2017. This blog delves into the details of the case, the arguments presented, and the final decision.

    Background of the Case

    One97 Communications Limited, the parent company of Paytm, imported Paytm Soundbox devices between 2019 and 2022. These devices are portable audio-activated smart devices that notify merchants of successful payments made by customers. ​ The company classified these devices under Customs Tariff Item (CTI) 8517 62 90 and claimed a concessional BCD rate of 10% under Serial No. ​ 20 of Notification No. ​ 57/2017.

    However, the customs department issued two show-cause notices alleging that the devices were 4G LTE compliant and therefore fell under the exclusionary clauses of the notification, making them ineligible for the concessional duty rate. ​ The department demanded differential duty and imposed 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 Delhi

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  • CESTAT Delhi Sets Aside Penalty on Customs Broker in CVD Assessment Dispute

    CESTAT Delhi Sets Aside Penalty on Customs Broker in CVD Assessment Dispute

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 12.08.2025

    CESTAT Delhi Sets Aside Penalty on Customs Broker in CVD Assessment Dispute ​ ​ ​

    In a significant ruling, the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi, has set aside the penalty imposed on M/s. ​ AV Global Corporation (P) Ltd., a Customs House Agent (CHA), in a case involving the assessment of Countervailing Duty (CVD) on imported CNG kits and components. ​ The decision, delivered by Judicial, highlights the importance of judicial discretion in penalty imposition and the burden of proof on the department in cases of alleged suppression of facts.

    Background of the Case

    The case arose from an investigation by the Customs Department, which alleged that M/s. ​ Shrimanker Gas Car Services Pvt. ​ Ltd. (the importer) had evaded customs duties by paying CVD based on the transaction value of imported CNG kits instead of the Retail Sale Price (RSP), as mandated under the Customs Tariff Act, 1975, and related provisions. ​ The department issued a show cause notice proposing recovery of Rs. ​ 12,11,469/- along with interest and penalties. ​ M/s. AV Global Corporation, acting as the CHA for the importer, was also penalized under Section 112(a) of the Customs Act, 1962, for allegedly abetting the importer in the short payment of duty. The penalty of Rs. ​ 18,000/- was imposed on the CHA, which was upheld in the Order-in-Appeal. ​ Aggrieved, the CHA approached 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 Delhi

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  • CESTAT Delhi- The re-determination of the car’s value under rule 3 of the customs valuation rules was unjustified

    CESTAT Delhi- The re-determination of the car’s value under rule 3 of the customs valuation rules was unjustified

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 11.08.2025

    CESTAT Delhi- The re-determination of the car’s value under rule 3 of the customs valuation rules was unjustified

    In a landmark decision, the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), New Delhi, has delivered justice to appellants in a case involving the import of a Bentley Flying Spur Automatic car. The judgment, pronounced on August 8, 2025, has set aside penalties, confiscation orders, and demands for differential duty, bringing relief to Appellant, M/s Mera Baba Realty Associates Pvt. Ltd., Vikrant Kalia, and M/s Payless Cargo. ​ This case highlights the importance of adhering to customs regulations while also ensuring fair treatment of importers.

    Background of the Case

    The case revolved around the import of a Bentley Flying Spur Automatic car by Appellant, Director of M/s Big Boyz Toyz, in October 2009. ​ The car was declared as new, with an assessable value of Rs. 73,84,842. However, the Principal Commissioner of Customs re-determined the value to Rs. ​ 88,61,962, citing undervaluation and misdeclaration. ​ Additionally, the benefit of concessional duty under Notification No. ​ 21/2002-CUS was denied, as the car was registered in the UK prior to importation. ​ Penalties and confiscation orders were imposed on the appellants, leading to appeals 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 Delhi

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  • CESTAT Delhi set aside the demand, interest, and penalties, and dismissed the department’s appeals

    CESTAT Delhi set aside the demand, interest, and penalties, and dismissed the department’s appeals

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 08.08.2025

    CESTAT Delhi set aside the demand, interest, and penalties, and dismissed the department’s appeals ​ ​

    On August 7, 2025, the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Principal Bench, New Delhi, delivered a significant judgment in Customs Appeal No. ​ 3567 of 2012, along with related appeals filed by the department. This case, involving M/s D.D. ​ Industries Ltd., sheds light on critical aspects of customs law, including the applicability of retail sale price (RSP) valuation, extended periods of limitation, and the imposition of penalties under the Customs Act, 1962.

    Background of the Case

    M/s D.D. ​ Industries Ltd., engaged in the import, fitment, and trading of CNG kits and components, was accused by the customs department of evading customs duties. ​ The department alleged that the company paid Countervailing Duty (CVD) on the transaction value of imported CNG kits instead of the RSP basis, as required under the Customs Tariff Act, 1975. ​ A show cause notice was issued, and the Joint Commissioner confirmed the demand with penalties. ​ However, the Commissioner (Appeals) provided partial relief, dropping the extended period of limitation but confirming the demand for the normal period under Section 28(1) of the Customs Act. ​

    Both the appellant and the department filed appeals before the Tribunal. The appellant challenged the confirmation of the demand and penalties, while the department contested the Commissioner (Appeals)’ authority to remand the matter.

    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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