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Tag: #CESTATDelhi

  • CESTAT Delhi Allows BCD and IGST Exemption on HIV Detection Kits

    CESTAT Delhi Allows BCD and IGST Exemption on HIV Detection Kits

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 07.08.2025

    CESTAT Delhi Allows BCD and IGST Exemption on HIV Detection Kits

    In a significant ruling, the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi, has set a precedent by granting exemption from Basic Customs Duty (BCD) and reduced Integrated Goods and Services Tax (IGST) rates to advanced HIV diagnostic kits imported by M/s Hemogenomics Pvt. ​ Ltd. This decision underscores the importance of technological advancements in healthcare and their alignment with public interest objectives. ​

    Background of the Case

    M/s Hemogenomics Pvt. ​ Ltd., engaged in importing and supplying diagnostic kits, filed an appeal against the rejection of exemption benefits for their imported Procleix Ultrio Plus Assay Kits and Procleix Ultrio Elite Assay Kits. These kits, based on Nucleic Acid Amplification Test (NAAT) technology, are used for detecting HIV, Hepatitis B, and Hepatitis C viruses in blood specimens. The dispute arose when the Customs Department classified these kits under CTI 3822 00 90 and denied exemption benefits, arguing that the kits were not diagnostic kits for detecting HIV antibodies as specified in the exemption notifications.

    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 Quashes Bond Enforcement Against Bank of Nova Scotia

    CESTAT Delhi Quashes Bond Enforcement Against Bank of Nova Scotia

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 06.08.2025

    CESTAT Delhi Quashes Bond Enforcement Against Bank of Nova Scotia ​ ​​ ​

    In a significant ruling by the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), the Bank of Nova Scotia successfully challenged the enforcement of bonds executed for recovery of duty, interest, and penalty against two exporters, Nikkamal Jewellers and Krishan Chander Ramesh Chander (P) Ltd. ​ The decision, pronounced on August 5, 2025, sets a precedent for cases involving the obligations of nominated agencies under customs notifications.

    Background

    The Bank of Nova Scotia, a multinational financial service provider, operates as a nominated agency for importing bullion under the “Export Against Supply by Nominated Agencies” scheme. ​ This scheme, governed by Notification No. ​ 57/2000-Cus dated May 8, 2000, allowed duty-free import of gold, provided it was exported as jewellery within 120 days. ​ However, the second proviso of this notification, which mandated this obligation, was omitted by Notification No. ​ 33/2015-Cus dated May 15, 2015. ​

    The case arose when the Directorate of Revenue Intelligence (DRI) intercepted gold jewellery allegedly being smuggled by exporters linked to the Bank of Nova Scotia. A show cause notice was issued to various parties, including the exporters, but the Bank of Nova Scotia was not explicitly called upon to respond.

    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 Reinforced the rights of importers to seek amendments and claim refunds under the Customs Act

    CESTAT Delhi Reinforced the rights of importers to seek amendments and claim refunds under the Customs Act

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 04.08.2025

    CESTAT Delhi Reinforced the rights of importers to seek amendments and claim refunds under the Customs Act ​ ​​

    The Customs, Excise & Service Tax Appellate Tribunal (CESTAT) in New Delhi recently delivered a significant judgment in the case of Trust Marketing vs. Commissioner of Customs. This decision, pronounced on July 28, 2025, has far-reaching implications for importers and the interpretation of key provisions under the Customs Act, 1962. Let’s delve into the details of this case and its impact on customs law.

    Background of the Case

    Trust Marketing, an importer and distributor of mobile phones, filed 180 Bills of Entry between February 2014 and October 2014, paying Additional Duty of Customs at a higher rate of 6%. ​ However, under Notification No. ​ 12/2012-CE dated March 17, 2012, the applicable duty was only 1%, provided Condition No. ​ 16 was satisfied. ​ This condition required that no credit under the CENVAT Credit Rules, 2004 be availed for inputs or capital goods used in manufacturing the goods. ​

    Trust Marketing later sought to amend these Bills of Entry under Section 149 of the Customs Act, 1962, to claim the lower duty rate and subsequently file for a refund under Section 27. The Deputy Commissioner rejected the request, citing finality of assessment and procedural limitations. ​ However, the Commissioner (Appeals) overturned this decision, allowing the amendments, which led to the department filing an 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 Delhi

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  • CESTAT Delhi Set Aside Re-determination of FOB Value and Confiscation

    CESTAT Delhi Set Aside Re-determination of FOB Value and Confiscation

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 31.07.2025

    CESTAT Delhi Set Aside Re-determination of FOB Value and Confiscation ​

    The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi, recently delivered a significant judgment in the case of M/s Modak Dyeing & Printing Co. Pvt. Ltd. (Customs Appeal No. ​ 53962 of 2023). This decision, pronounced on July 29, 2025, has far-reaching implications for exporters and the interpretation of customs valuation rules under the Customs Act, 1962. Let’s delve into the details of this case and its impact on the export industry.

    Background of the Case

    The appellant, M/s Modak Dyeing & Printing Co. Pvt. ​ Ltd., filed two shipping bills in August 2018 for the export of Girls Frocks Woven Made of Manmade Fibre, declaring a Free On Board (FOB) value of Rs. ​ 4,10,52,321/-. However, the Special Intelligence and Investigation Branch (SIIB) suspected overvaluation of goods to claim excessive export benefits such as drawback, Refund of State Levies (ROSL), Merchandise Exports from India Scheme (MEIS), and IGST refund. ​

    Following a market inquiry, the customs authorities determined the market value of the goods to be between Rs. ​ 45/- to Rs. 65/- per piece, significantly lower than the declared value of Rs. 274.13 per piece. ​ Consequently, the Joint Commissioner rejected the declared FOB value under Rule 8 of the Customs Valuation Rules, 2007, and re-determined it under Rule 6, reducing the total value to Rs. ​ 74,88,000/-. The goods were confiscated, and penalties 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 Delhi

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  • CESTAT Delhi Upholds Importer’s Right to Amend Bills of Entry under Section 149

    CESTAT Delhi Upholds Importer’s Right to Amend Bills of Entry under Section 149

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 30.07.2025

    CESTAT Delhi Upholds Importer’s Right to Amend Bills of Entry under Section 149 ​

    The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Principal Bench, New Delhi, recently delivered a significant judgment in the case of Commissioner of Customs vs. M/s Akshar Telecom Pvt. ​ Ltd.. This decision has far-reaching implications for importers seeking amendments to Bills of Entry under Section 149 of the Customs Act, 1962. ​ Let’s delve into the details of this case and its impact on the legal landscape.

    Background of the Case

    M/s Akshar Telecom Pvt. ​ Ltd., an importer and distributor of mobile phones, filed 180 Bills of Entry between February 2014 and October 2014. ​ At the time, the company paid Additional Duty of Customs at a higher rate of 6%, despite being eligible for a reduced rate of 1% under Notification No. ​ 12/2012-CE, provided Condition No. 16 was satisfied. ​ This condition stipulated that no credit under the CENVAT Credit Rules, 2004 should have been availed for inputs or capital goods used in manufacturing the goods. ​

    The company later sought amendments to these Bills of Entry under Section 149 of the Customs Act to claim the reduced duty rate and subsequently file for a refund under Section 27 of the Act. ​ However, the Deputy Commissioner rejected the request, citing finality of assessment and procedural limitations.

    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- No Confiscation under Section 111(m) for Wrong Classification

    CESTAT Delhi- No Confiscation under Section 111(m) for Wrong Classification

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 29.07.2025

    CESTAT Delhi- No Confiscation under Section 111(m) for Wrong Classification ​

    The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Principal Bench, New Delhi, has clarified that goods imported with a wrong classification or based on an ineligible exemption claim cannot be confiscated under Section 111(m) of the Customs Act, 1962. The Tribunal’s decision comes as a major relief for importers who often face penal actions due to technical misclassifications or incorrect exemption claims.

    Case Background

    M/s Raj Metals & Alloys, a manufacturer of aluminium ingots registered with the State Pollution Control Board, imported aluminium scrap described as β€œThorn”, a term standardised by the Institute of Scrap Recycling Industries (ISRI), USA. The scrap was declared under Customs Tariff Item (CTI) 76020010, which is applicable to freely importable aluminium scrap. However, authorities held that β€œThorn” falls under CTI 76020090, a restricted item under the Foreign Trade Policy (FTP), and thus required an import license, which the importer did not possess.

    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-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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  • CESTAT Delhi Allows Duty Exemption on Lithium-Ion Battery Components

    CESTAT Delhi Allows Duty Exemption on Lithium-Ion Battery Components

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 14.07.2025

    CESTAT Delhi Allows Duty Exemption on Lithium-Ion Battery Components

    The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Delhi has allowed M/s XOR Technologies LLP to avail duty exemption under Entry 512 of Notification No. 50/2017-Cus, holding that the manufacture of lithium-ion batteriesβ€”even when used in power banksβ€”satisfies the conditions of the notification. The Tribunal quashed the demand of β‚Ή8.13 crores raised by the Customs Department and dismissed the penalty under Section 114A of the Customs Act, 1962.

    Case Background

    • Appellant: M/s XOR Technologies LLP, Delhi
    • Products Involved: Lithium-ion cells, USB cables, nickel strips, plastic housing, etc.
    • Period: FY 2017 to 2019
    • Notification Involved: No. 50/2017-Cus, Entry 512
    • Allegation: Components were used in power banks, not in lithium-ion batteries, violating the terms of the exemption.
    • Duty Demand: β‚Ή8,12,95,799 with interest and equal penalty under Section 114A

    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- DGFT Cancellation Mandatory for Action Under Section 28AAA

    CESTAT Delhi- DGFT Cancellation Mandatory for Action Under Section 28AAA

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 10.07.2025

    CESTAT Delhi- DGFT Cancellation Mandatory for Action Under Section 28AAA

    The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi, Principal Bench, vide Final Order Nos. 50827-50828/2025 dated 04.06.2025, quashed the confiscation, recovery of export benefits, and penalties imposed on M/s K.G. Exports and its partner. The case revolved around the alleged diversion of export consignments and ineligible claim of Focus Market Scheme (FMS) benefits.

    Case Background

    M/s K.G. Exports, a manufacturer-exporter of ready-made garments, exported consignments to the UAE while declaring Panama as the destination in shipping bills. Based on the documents, the firm claimed benefits under the Focus Market Scheme (FMS), which incentivizes exports to specified countries like Panama.

    Subsequent investigations by Customs revealed that the goods were shipped to Foreigner, UAE, not Panama, as declared. Customs authorities alleged that this misrepresentation was done to fraudulently avail FMS benefits. Based on statements made by the freight forwarder, Customs proceeded against the exporter and its partner under Sections 113, 114(iii), 114AA, and 28AAA 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 Delhi

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  • CESTAT Delhi Sets Aside Penalties on Small Jewellers

    CESTAT Delhi Sets Aside Penalties on Small Jewellers

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 07.07.2025

    CESTAT Delhi Sets Aside Penalties on Small Jewellers

    Background

    The appellantsβ€”small-scale jewellers from Panipat, Haryanaβ€”were caught in a DRI-led raid at a Karol Bagh shop in 2018. Large quantities of gold bars of foreign origin and Indian currency exceeding β‚Ή3 crore were seized. The jewellers were found with cash amounts ranging between β‚Ή3.1 lakhs and β‚Ή9.5 lakhs, allegedly meant to buy gold from a person.

    The Customs Department issued a Show Cause Notice alleging that the appellants were conspirators in the smuggling of foreign-origin gold, proposing confiscation of currency under Section 121 and penalties under Section 117 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 Delhi

    Disclaimer

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