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Tag: #Customs

  • CESTAT Delhi Upholds Importer’s Tariff Classification

    CESTAT Delhi Upholds Importer’s Tariff Classification

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 05.06.2025

    CESTAT Delhi Upholds Importer’s Tariff Classification

    The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi, allowed the appeal of M/s Motherson Bergstrom HVAC Solutions Pvt. Ltd., setting aside the customs demand raised on account of alleged misclassification of imported automotive air conditioning components. The Tribunal’s detailed decision reaffirms the primacy of Note 2(a) of Section XVI in tariff classification and reasserts settled jurisprudence that specific tariff headings under Chapters 84 and 85 prevail over general residual classifications.

    Background of the Case:

    The appellant, M/s Motherson Bergstrom, imported various parts and assemblies such as blowers, filters, water valve assemblies, thermostats, modules, and control panels, classifying them under individual tariff headings of Chapters 84, 85, and 90. The Customs department reclassified the goods under CTI 8415 90 00 (parts of air conditioners), demanded differential customs duty under Section 28(1) of the Customs Act, and initiated reassessment proceedings.

    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 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 β‚Ή30 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 β‚Ή30 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 Delhi- Customs Cannot Invoke Section 28AAA Without DGFT Cancellation

    CESTAT Delhi- Customs Cannot Invoke Section 28AAA Without DGFT Cancellation

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 04.06.2025

    CESTAT Delhi- Customs Cannot Invoke Section 28AAA Without DGFT Cancellation

    The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Delhi, has set aside the confiscation and penalty orders issued against New Era Trading Pvt. Ltd., a ready-made garments exporter, under the Customs Act, 1962. The case revolved around alleged misuse of the Focus Market Scheme (FMS) benefits, with the Revenue Department invoking Section 28AAA, alleging diversion of goods and fraudulent claims.

    Background of the Case

    New Era Trading Pvt. Ltd. had exported garments under the Focus Market Scheme to various countries including Panama and the Netherlands, on FOB (Free on Board) terms. The freight forwarding was handled by Concorde Shipping & Logistics India, based on buyer instructions.

    Later, it was discovered that the goods, allegedly destined for notified countries, had actually landed in Dubai, a non-notified destination under the scheme.

    This led to the issuance of a Show Cause Notice (SCN) in January 2020, alleging:

    • Misuse of FMS scrips worth β‚Ή4.14 crore
    • Goods liable for confiscation under Section 113(d), (g), and (i)
    • Proposal of penalties under Sections 114(iii), 114AA, and 114AB

    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 Mumbai Restores Customs Broker License in IGST Refund Allegation

    CESTAT Mumbai Restores Customs Broker License in IGST Refund Allegation

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 04.06.2025

    CESTAT Mumbai Restores Customs Broker License in IGST Refund Allegation

    The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai quashed the revocation of the customs broker license of Horizon Cleford Private Limited, holding that the allegations of regulatory violations under the Customs Brokers Licensing Regulations (CBLR), 2018 were unfounded and procedurally flawed.

    The tribunal’s verdict brings significant relief to customs brokers facing scrutiny over their clients’ export transactions, especially where allegations involve overvaluation and misuse of IGST refund schemes.

    Background of the Case

    Horizon Cleford Pvt. Ltd., a licensed customs broker in Mumbai, had filed three shipping bills in November 2018 for an exporterβ€”M/s Jamilar International Pvt. Ltd., New Delhiβ€”declaring exports of USB cables. These were later alleged to be overvalued with the intention of fraudulently claiming ineligible IGST refunds.

    Key allegations by the Customs Department:

    • Inflated FOB values declared to secure IGST refund of β‚Ή13.08 lakh instead of an admissible β‚Ή1.68 lakh.
    • The exporter was found untraceable at the registered addresses.
    • Horizon Cleford was accused of violating Regulations 10(d), 10(e), and 10(n) of CBLR, 2018.
    • Based on these findings, the Principal Commissioner of Customs, Mumbai passed an order on 19th July 2024 revoking the CB license, forfeiting the security deposit, and imposing a penalty.

    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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  • CESTAT Bangalore Quashes Customs Duty Demand on Gardner Aerospace Upon EODC Submission

    CESTAT Bangalore Quashes Customs Duty Demand on Gardner Aerospace Upon EODC Submission

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 03.06.2025

    CESTAT Bangalore Quashes Customs Duty Demand on Gardner Aerospace Upon EODC Submission

    The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Bangalore Bench delivered a favorable judgment in Appeal Nos. C/20784 and C/20785 of 2016, filed by M/s. Gardner Aerospace Pranitha Engineering Pvt. Ltd. The appeals challenged the demand of customs duty and penalties imposed due to non-submission of the Export Obligation Discharge Certificate (EODC) under Notification No. 96/2009-Cus. dated 11.09.2009.

    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 Bangalore

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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 β‚Ή92.83 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 Chennai Upholds Transaction Value in Solar Equipment Imports by Enfinity Solar

    CESTAT Chennai Upholds Transaction Value in Solar Equipment Imports by Enfinity Solar

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 02.06.2025

    CESTAT Chennai Upholds Transaction Value in Solar Equipment Imports by Enfinity Solar

    The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Chennai Bench has dismissed the appeal filed by the Commissioner of Customs, upholding the decision in favour of M/s Enfinity Solar Solutions Pvt. Ltd. The Tribunal found that the Customs Department had no valid legal grounds to load the transaction value of imports made under unrelated-party invoices, despite the alleged related-party concerns.

    The final order, pronounced on 29 May 2025, reaffirmed the legal position that valuation under the Customs Act must be based on actual commercial evidence, not assumptions or analogies to income tax transfer pricing methods.

    Case Background

    • Appellant: Commissioner of Customs, Chennai
    • Respondent: M/s Enfinity Solar Solutions Pvt. Ltd.
    • Imports Involved: Solar panels, photovoltaic (PV) cables, power inverters, and accessories
    • Foreign Entities: Enfinity N.V., Belgium (Parent Co.) & Enfinity Asia Pacific (Trading) Ltd., Hong Kong

    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 Chennai

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  • CESTAT Allahabad Allowed to Convert Free Shipping Bills to Drawback Bills Under Section 149

    CESTAT Allahabad Allowed to Convert Free Shipping Bills to Drawback Bills Under Section 149

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 02.06.2025

    CESTAT Allahabad Allowed to Convert Free Shipping Bills to Drawback Bills Under Section 149

    The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Allahabad Bench, has allowed the appeal of M/s Pakka Ltd. (formerly Yash Pakka Ltd.), setting aside the denial of conversion of free shipping bills to drawback shipping bills. The Tribunal reaffirmed the exporter’s right to seek amendment under Section 149 of the Customs Act, 1962, even post-export, based on pre-existing documentation.

    Case Summary

    • Appellant: M/s Pakka Ltd., Faizabad
    • Respondent: Commissioner of Customs (Preventive), Lucknow
    • CESTAT Appeal No.: 70109 of 2024
    • Impugned Order: OIO No. 01/Tech/2023 dated 13.12.2023
    • Final Order: No. 70136/2024 dated 14.02.2024

    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 Allahabad

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  • CESTAT Ahmedabad Rejects Misclassification Allegation

    CESTAT Ahmedabad Rejects Misclassification Allegation

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 31.05.2025

    CESTAT Ahmedabad Rejects Misclassification Allegation

    The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), West Zonal Bench, Ahmedabad, Colourtex Industries Pvt. Ltd. and other appellants have secured a favorable decision in a long-standing customs classification dispute. The case revolved around the import classification of β€œTWITCHELL 6808 DEDUSTER” and its eligibility for duty exemption under Indian customs law.

    The Dispute: Classification of Imported Deduster

    Colourtex Industries, a manufacturer of color dyes, had been importing a product used in the dedusting of dyes during production. The product was declared under Heading 2710 1990, which covers preparations containing 70% or more of petroleum oils. Initially, the product was classified under Heading 3809 9140, but the classification was amended by the appellant in 2017 based on further testing and supplier documentation. The Directorate of Revenue Intelligence (DRI), however, initiated proceedings alleging misclassification. Based on a 2020 test report from the Central Revenues Control Laboratory (CRCL), the DRI claimed the product was a preparation based on organic surface-active agents, meriting classification under Heading 3402 9019. This led to the issuance of a show cause notice and the subsequent adjudication by the Commissioner of Customs, Ahmedabad, which the appellant challenged before the CESTAT.

    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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  • CESTAT Kolkata Orders β‚Ή73 Lakh Drawback Refund to Nidhi Distributors After 22 Years

    CESTAT Kolkata Orders β‚Ή73 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 β‚Ή73 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 β‚Ή73 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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