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Tag: #CESTATKolkata

  • CESTAT Kolkata Sets Aside Penalty for Alleged Role in Foreign Gold Smuggling

    CESTAT Kolkata Sets Aside Penalty for Alleged Role in Foreign Gold Smuggling

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 05.06.2025

    CESTAT Kolkata Sets Aside Penalty for Alleged Role in Foreign Gold Smuggling

    The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Kolkata Bench, has ruled in favour of an appellant who was penalized ₹30 lakhs under Section 112(b) of the Customs Act, 1962, for alleged involvement in gold smuggling from Bhutan. The case highlights the importance of independent corroborative evidence when imposing penalties, particularly in cases involving sensitive imports like gold.

    Case Background

    The Directorate of Revenue Intelligence (DRI), Siliguri, conducted a series of seizures involving smuggled foreign origin gold allegedly routed through Bhutan and subsequently melted in Indian melting units.

    The appellant, who owned a gold melting unit, was charged with:

    • Aiding in the concealment and melting of smuggled gold.
    • Violating Section 112(b) of the Customs Act, 1962.
    • Being part of a conspiracy involving illegal import and laundering of foreign gold.
    • The adjudicating authority had imposed a personal penalty of ₹30 lakhs on the appellant, citing statements made by alleged co-conspirators.

    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 Kolkata

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  • CESTAT Kolkata- Interest Not Payable on Pre-2006 Provisional Assessments

    CESTAT Kolkata- Interest Not Payable on Pre-2006 Provisional Assessments

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 03.06.2025

    CESTAT Kolkata- Interest Not Payable on Pre-2006 Provisional Assessments

    The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Kolkata Bench has allowed the appeal filed by M/s Century Pulp & Paper, ruling that no interest is payable upon finalization of provisional assessments made before the introduction of Section 18(3) of the Customs Act, 1962.

    This decision, issued via Final Order No. 75183/2024 dated 08.02.2024, affirms that interest liability under Section 18(3) is prospective and cannot apply retrospectively to imports assessed provisionally before 13.07.2006, the date on which this provision was inserted via the Taxation Laws (Amendment) Act, 2006.

    Case Background

    • Appellant: M/s. Century Pulp & Paper
    • Issue: Whether interest was payable on customs duty upon final assessment of imports made in 1997-98, assessed provisionally under project import classification (CTH 9801).
    • Timeline:
      • Goods imported in 1997–98
      • Provisional assessments conducted under the old law
      • Reclassification occurred in 2011–12 due to non-commissioning of the project
      • Duty of ₹92.83 lakhs was paid post-finalization in 2014
      • Interest was demanded by Customs, challenged by the importer

    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 Kolkata

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  • CESTAT Kolkata Orders ₹73 Lakh Drawback Refund to Nidhi Distributors After 22 Years

    CESTAT Kolkata Orders ₹73 Lakh Drawback Refund to Nidhi Distributors After 22 Years

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 30.05.2025

    CESTAT Kolkata Orders ₹73 Lakh Drawback Refund to Nidhi Distributors After 22 Years

    The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Kolkata Bench has allowed their appeal in a long-pending dispute dating back to 2002 regarding drawback claims totaling over ₹73 lakhs. The Tribunal directed the Customs department to process the refund, subject to verification of export realization.

    Case Background:

    • Appellant: M/s Nidhi Distributors
    • Respondent: Commissioner of Customs (Port), Kolkata
    • Appeal No.: Customs Appeal No. 75944 of 2021
    • Date of Final Order: 23 February 2024
    • Original Issue: Rejection of drawback claim on exports of T-shirts and Gents Shirts under 33 shipping bills from June–August 2002

    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 Kolkata

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  • CESTAT Kolkata- valuation enhancement was arbitrary and unsupported

    CESTAT Kolkata- valuation enhancement was arbitrary and unsupported

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 22.05.2025

    CESTAT Kolkata- valuation enhancement was arbitrary and unsupported

    The Eastern Zonal Bench of CESTAT, Kolkata upheld the decision of the Commissioner (Appeals) in favor of Aahana Commerce Pvt. Ltd., rejecting the Revenue’s appeal challenging the classification and assessable value of imported goods, namely motor controllers and electric tricycle spare parts.

    The Tribunal confirmed that the goods were correctly classified under CTH 8503 0090 and also held that the transaction value declared by the importer was valid, striking down the enhancement made by the assessing officer.

    Background of the Case

    • Importer: Aahana Commerce Pvt. Ltd., Kolkata
    • Goods Imported: Motor controllers and electric tricycle spare parts
    • Department’s Actions:
      • Rejected declared value and enhanced the CIF value
      • Reclassified motor controllers from CTH 8503 0090 to CTH 8708 9900
      • Importer paid enhanced duty under protest to avoid demurrage
    • Commissioner (Appeals):
      • Accepted the declared transaction value
      • Restored classification to CTH 8503 0090

    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 Kolkata

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  • CESTAT Kolkata- Lemoneez is rightly classifiable under CTH 20093100

    CESTAT Kolkata- Lemoneez is rightly classifiable under CTH 20093100

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 17.05.2025

    CESTAT Kolkata- Lemoneez is rightly classifiable under CTH 20093100

    The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Eastern Zonal Bench, Kolkata, delivered a landmark decision on 8th May 2025, resolving a long-standing customs classification dispute involving Dabur India Limited. The case revolved around the classification of “Lemoneez,” a lemon juice concentrate imported from Nepal.

    Background of the Dispute

    Dabur India Ltd., represented along with their Custom House Agent (CHA),had classified Lemoneez under Tariff Item 2202 99 20, attracting IGST @12%, while importing from Nepal. However, a revenue alert triggered by DGARM alleged underpayment of duty and contended that the product was incorrectly classified. The Department claimed the product should fall under Heading 2106, which attracts IGST @18%. A Show Cause Notice followed, culminating in the Order-in-Original dated 29.11.2024 by the Commissioner of Customs (Preventive), Patna, confirming a differential tax demand of ₹1.05 crores, interest, and 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 Kolkata

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  • CESTAT Kolkata Upholds Bed Sheet Classification Under CTH 6304

    CESTAT Kolkata Upholds Bed Sheet Classification Under CTH 6304

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 13.05.2025

    CESTAT Kolkata Upholds Bed Sheet Classification Under CTH 6304

    The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Kolkata Bench, dismissed the Department’s appeal and affirmed the classification adopted by Silpha Finvest Pvt. Ltd. for imported bed sheets made of 100% polyester. The Tribunal held that the goods were rightly classified under CTH 6304 and not under CTH 5407, rejecting the Revenue’s charge of misdeclaration and its demand for penalty and redemption fine.

    Case Snapshot

    • Importer: Silpha Finvest Pvt. Ltd., Kolkata
    • Goods: Bed sheets made of 100% polyester
    • Declared Classification: CTH 6304 (Bedspreads & other furnishing articles)
    • Department’s Reclassification: CTH 5407 (Woven fabrics of synthetic filament yarn)
    • Show Cause Notice: Alleged misdeclaration and suppression
    • Adjudication Result: Classification changed; goods confiscated; duty, fine, and penalty 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 Kolkata

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  • CESTAT Kolkata ruled that confiscation and penalty were unjustified when ownership was already relinquished and misdeclaration wasn’t proven

    CESTAT Kolkata ruled that confiscation and penalty were unjustified when ownership was already relinquished and misdeclaration wasn’t proven

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 06.05.2025

    CESTAT Kolkata ruled that confiscation and penalty were unjustified when ownership was already relinquished and misdeclaration wasn’t proven

    The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Kolkata Bench delivered a significant ruling in favour of multiple importers, including Appellants, Kritika Impex, Kushagra Shipping Agency, Ganpati Roadways, and Bhawani Cargo Movers, who were accused of misdeclaration of goods and liable for penalties and duty demand.

    Case Background

    • Date of Bill of Entry: 11 September 2021 (No. 5405619) and earlier on 31 August 2021 (No. 5257900)
    • The importers had filed Bills of Entry based on shipping documents received from the foreign seller.
    • Upon learning on 18 September 2021 that the container had been wrongly loaded, the importers promptly notified Customs and declared relinquishment of goods under Section 23 of the Customs Act, 1962.
    • A 100% examination revealed the presence of white pepper and white wood powder.
    • Despite relinquishing rights and disclosing the issue, the authorities issued Show Cause Notices alleging misdeclaration, invoking penalties and seeking confiscation.

    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 Kolkata

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  • CESTAT Kolkata- Higher Customs Duty Held Unenforceable Due to Delay in Notification Publication

    CESTAT Kolkata- Higher Customs Duty Held Unenforceable Due to Delay in Notification Publication

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 05.05.2025

    CESTAT Kolkata- Higher Customs Duty Held Unenforceable Due to Delay in Notification Publication

    The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Eastern Zonal Bench, Kolkata, ruled in favour of M/s Emami Agrotech Ltd. by setting aside the demand for differential customs duty on imported crude palm oil. The case involved a dispute over the applicable date for a notification that raised Basic Customs Duty (BCD) from 15% to 30%.

    Case Background:

    • Emami imported crude palm oil in November 2017 via four Bills of Entry dated 16.11.2017.
    • Entry inward for the consignments was granted on 18.11.2017 and 19.11.2017.
    • Notification No. 87/2017-Customs dated 17.11.2017, which increased BCD to 30%, was only published in the Official Gazette on 20.11.2017.
    • Customs demanded higher duty based on the entry inward date.
    • Emami paid the higher duty under protest and later appealed the assessment.

    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 Kolkata

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  • CESTAT Kolkata Allows Exemption on Imported Crude Rice Bran Oil

    CESTAT Kolkata Allows Exemption on Imported Crude Rice Bran Oil

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 01.05.2025

    CESTAT Kolkata Allows Exemption on Imported Crude Rice Bran Oil

    The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Kolkata, set aside a massive ₹70 crore customs duty demand raised against M/s Kalyani Solvent Pvt. Ltd. for importing crude rice bran oil. The tribunal held that the company was eligible for exemption under Notification No. 21/2002-Cus. (as amended), even though the acid content of the imported oil exceeded 20%.

    Background:

    M/s Kalyani Solvent Pvt. Ltd., a leading edible oil processor supplying to brands like Patanjali, had imported 104 consignments of crude rice bran oil between October 2010 and February 2012 under CTH 1515 9091, claiming duty exemption. Customs authorities later issued a Show Cause Notice in 2013 alleging the imports were ineligible for exemption due to high acid content, seeking recovery of ₹70 crore.

    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 Kolkata

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  • CESTAT Kolkata quashing a demand notice for recovery of a SAD refund

    CESTAT Kolkata quashing a demand notice for recovery of a SAD refund

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 30.04.2025

    CESTAT Kolkata quashing a demand notice for recovery of a SAD refund

    The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Kolkata Bench, in Final Order No. 76020/2025 dated 24 April 2025, delivered a significant ruling in favour of KEC International Ltd., quashing a demand notice for recovery of a Special Additional Duty (SAD) refund.

    Background:

    • KEC International Ltd., a major manufacturer of power transmission equipment, had entered into an agreement with Power Grid Corporation of India Ltd. for setting up fibre optic cabling infrastructure.
    • In order to fulfil contractual obligations, KEC imported OPGW fibre optic cables and accessories and cleared the same for home consumption on 22 January 2014.
    • The company paid all applicable duties including SAD and subsequently sold the goods to Power Grid, discharging VAT/CST, and filed for a SAD refund under Notification No. 102/2007-Cus.
    • The refund claim was sanctioned on 26 September 2014 after due verification by Customs.

    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 Kolkata

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