𝐀𝐚𝐝𝐫𝐢𝐤𝐚𝐚 𝐋𝐚𝐰 𝐎𝐟𝐟𝐢𝐜𝐞𝐬 (𝐀𝐋𝐎)

Tag: #Customs Duty

Delhi High Court Quashes DRI Summons and Complaint in Foreign Currency Case
ALO Law Office- IDT Tax I Arbitration I Litigation

Date: 26.05.2025

Delhi High Court Quashes DRI Summons and Complaint in Foreign Currency Case

The Delhi High Court in CRL.M.C. 7919/2023 & CRL.M.A. 29532/2023 quashed the criminal complaint and the summoning order issued against Mr. Pawan Kant Munjal, Executive Chairman of Hero MotoCorp, by the Directorate of Revenue Intelligence (DRI). The court held that the proceedings were based on a set of facts already conclusively adjudicated in favour of the petitioner, and continuing with the prosecution would amount to an abuse of process of law.

Background of the Case
- Petitioner: Pawan Kant Munjal, Executive Chairman, Hero MotoCorp
- Complaint Filed By: Directorate of Revenue Intelligence (DRI)
- Subject: Alleged violation involving undeclared foreign currency seized from an aide during an international business trip in 2018
- Key Event: Mr. Amit Bali, assistant of SEMPL (event coordinator), was found carrying undeclared currency amounting to approx. ₹81 lakh
- DRI Allegation: The currency belonged to Mr. Munjal and was exported illegally in contravention of the Customs Act and FEMA
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: Delhi High Court

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May 26, 2025
CESTAT Delhi- Import of MEK-Based Ink Does Not Require Narcotics NOC
ALO Law Office- IDT Tax I Arbitration I Litigation

Date: 26.05.2025

CESTAT Delhi- Import of MEK-Based Ink Does Not Require Narcotics NOC

The Principal Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi, allowed the appeal of M/s Videojet Technologies (India) Pvt. Ltd., holding that the import of ink and ink consumables containing Methyl Ethyl Ketone (MEK) does not require a No Objection Certificate (NOC) under the NDPS Act, 1985. The Tribunal set aside the confiscation, reclassification, and penalties imposed by Customs under Sections 111(d), 112, and 114AA of the Customs Act, 1962.

Background of the Case
- Importer: M/s Videojet Technologies (I) Pvt. Ltd.
- Goods Imported: Ink and ink-related consumables containing MEK (35% to 99%)
- Customs Action:
  - Goods seized by the Preventive Commissionerate, New Delhi
  - Reclassified from Chapter 32 (inks) to CTI 29141200 (MEK)
  - Confiscation ordered under Section 111(d)
  - Penalties of ₹10 lakhs under Section 112 and ₹25 lakhs under Section 114AA
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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May 26, 2025
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

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May 24, 2025
CESTAT Delhi Grants Exemption to Samsung India on Display Assemblies
ALO Law Office- IDT Tax I Arbitration I Litigation

Date: 23.05.2025

CESTAT Delhi Grants Exemption to Samsung India on Display Assemblies

The Principal Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi, ruled in favor of Samsung India Electronics Pvt. Ltd., setting aside customs duty demands raised by the department. The case revolved around whether the imported Mechanical Electrical Assembly (MEA) Front used in high-end smartphones like Galaxy Note 10 qualifies for basic customs duty exemption under Serial No. 6(a)(iv) of Notification No. 57/2017-Cus, which covers “Display Assembly” for mobile phones.

The Tribunal held that Samsung’s imported Assembly Front meets the criteria of “Display Assembly” and therefore qualifies for the exemption, rejecting the department’s interpretation that the inclusion of components like battery or receiver disqualified it from the benefit.

Background of the Case
- Appellant: Samsung India Electronics Pvt. Ltd.
- Issue: Rejection of exemption claimed on MEA Front assemblies used in smartphone manufacturing
- Exemption Notification: Serial No. 6(a)(iv) of Notification No. 57/2017-Cus (as amended)
- Goods in Question: MEA Front containing display, sub-PCBA, non-detachable battery, and waterproofing elements
- Department’s View: Product does not qualify as “Display Assembly” since it contains additional sub-parts
- Total Appeals: 26 (including Customs Appeal No. 51162/2022 and 25 related matters)
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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May 23, 2025
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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May 22, 2025
CESTAT Mumbai- Section 114A penalty is not sustainable in absence of culpability
ALO Law Office- IDT Tax I Arbitration I Litigation

Date: 21.05.2025

CESTAT Mumbai- Section 114A penalty is not sustainable in absence of culpability

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai Bench, in its final order dated 13th May 2025, allowed the appeal filed by M/s Apar Industries Ltd., quashing a customs duty demand of ₹71.05 lakhs, redemption fine of ₹25 lakhs, and penalties imposed under Section 114A of the Customs Act, 1962.

The Tribunal held that DEPB scrips used for imports prior to their cancellation remain valid, and any demand raised after their cancellation cannot retrospectively affect lawful imports.

Background of the Case
- Appellant: M/s Apar Industries Ltd., Mumbai
- Issue: Customs demand and penalty based on use of DEPB scrips alleged to be fraudulently obtained by original holders
- Notification Involved: Customs Exemption Notification No. 34/97-Cus. dated 07.04.1997
- Period of Dispute: Imports during July to November 1998
- Show Cause Notice Issued: 30.09.2002
- Duty Demanded: ₹71,05,031
- Redemption Fine: ₹25,00,000
- Penalty Imposed: ₹25,00,000 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 Mumbai

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May 21, 2025
CESTAT Ahmedabad held that verified COO and compliance with SAFTA conditions was sufficient
ALO Law Office- IDT Tax I Arbitration I Litigation

Date: 20.05.2025

CESTAT Ahmedabad held that verified COO and compliance with SAFTA conditions was sufficient

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), West Zonal Bench, Ahmedabad, has allowed the appeal of M/s Kesar Spices against the denial of exemption under Notification No. 99/2011-Cus for imports made under the South Asian Free Trade Area (SAFTA) framework.

Background of the Case
- Importer: Kesar Spices, Ahmedabad
- Goods: Walnuts in shell (101,250 kg)
- Exemption Claimed Under: Notification No. 99/2011-Cus read with Notification No. 75/2006-Cus
- Country of Origin Declared: Afghanistan
- Exporting Firm: M/s Kalimullah Hidayat Afghan Ltd., Kandahar, Afghanistan
- Key Allegation: Misdeclaration of U.S. origin goods as Afghan-origin to avail duty concession
- Demand Raised:
  - Customs Duty: ₹2.01 crores
  - Redemption Fine and Penalty under Sections 111(m), 111(o), 112, 114A, 114AA
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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May 20, 2025
CESTAT Delhi Sets aside Enhanced valuation, penalty, and redemption fine
ALO Law Office- IDT Tax I Arbitration I Litigation

Date: 19.05.2025

CESTAT Delhi Sets aside Enhanced valuation, penalty, and redemption fine

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Principal Bench, New Delhi allowed the appeal filed by Krishna Impex International, quashing the allegations of customs duty evasion, undervaluation, and associated penalties. The Tribunal held that the department failed to follow mandatory procedures under Section 14 of the Customs Act, 1962, and the Customs Valuation Rules, 1988, before rejecting the declared value of imported goods.

Background of the Case
- Appellant: Krishna Impex International, Delhi
- Dispute Origin: DRI search operation in 2008 alleging undervaluation of imported Tussah Silk Yarn from China
- Key Trigger: Statement by proprietor Shri Amarnath Jhunjhunwala admitting possible undervaluation
- Goods Assessed Under: Multiple Bills of Entry from 2005 to 2008
- Key Legal Provisions Invoked by Customs:
  - Section 14 of the Customs Act, 1962
  - Rule 4 and Rule 10A of the Customs Valuation Rules, 1988
  - Penalties under Sections 112(a), 114A, 114AA, and redemption fine
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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May 19, 2025
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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May 17, 2025
CESTAT Ahmedabad Upholds Classification of Petroleum Solvent as Freely Importable
ALO Law Office- IDT Tax I Arbitration I Litigation

Date: 16.05.2025

CESTAT Ahmedabad Upholds Classification of Petroleum Solvent as Freely Importable

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Ahmedabad Bench has delivered a significant judgment in Customs Appeal No. 11476/2017, setting aside the confiscation and penalty orders imposed on Gastrade International. The core issue pertained to the correct classification of imported Petroleum Hydrocarbon Solvent (125/240) Grade MTO—whether it should be treated as a freely importable product or a restricted one requiring State Trading Enterprise (STE) import route.

Case Snapshot
- Importer: Gastrade International, Gandhidham
- Product: Petroleum Hydrocarbon Solvent (MTO grade)
- Declared Classification: CTH 2710 19 90 (“Others” – freely importable)
- Customs Reclassification: CTH 2710 12 90 (“Light oils and preparations” – restricted)
- Penalty and Fine Imposed: ₹15 lakh (fine), ₹7.5 lakh (penalty) under Sections 111(d), 111(m), 112(a)(i)
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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May 16, 2025