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Tag: #Customs

  • CESTAT Delhi- Refund of ADD Permissible Despite Clerical Self-Assessment Error

    CESTAT Delhi- Refund of ADD Permissible Despite Clerical Self-Assessment Error

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 04.07.2025

    CESTAT Delhi- Refund of ADD Permissible Despite Clerical Self-Assessment Error

    The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Delhi has ruled that the refund of Anti-Dumping Duty (ADD) paid due to a clerical self-assessment error is admissible, provided substantive conditions are met. The Tribunal held that procedural lapses cannot defeat substantive rights, especially when the excess duty paid is evident from the Bill of Entry and supported by a valid exemption.

    Case Background

    • Appellant: Uflex Limited, Noida
    • Import: 29 boxes of Aluminium Foil (6.3 microns) from China
    • Bill of Entry: No. 2535627 dated 21.09.2022
    • Declared Value: β‚Ή68.29 lakh
    • Duty Paid: Basic Customs Duty, SWS, IGST, and ADD, despite ADD being exempted for 6.3-micron aluminium foil under Notification No. 51/2021-Cus (ADD) dated 16.09.2021
    • Refund Sought: β‚Ή7,14,018/- (β‚Ή6,05,100 ADD + β‚Ή1,08,918 IGST)

    Due to a clerical error, Uflex self-assessed and paid ADD. The company filed:

    • A request for reassessment on 12.10.2022
    • A refund application on 13.10.2022

    Both were rejected, citing:

    • Finality of self-assessment under Section 17 of the Customs Act
    • Supreme Court decisions in Priya Blue Industries and ITC Ltd.

    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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  • Madras High Court Quashes Customs Demand for EODCs Issued After 17 Years

    Madras High Court Quashes Customs Demand for EODCs Issued After 17 Years

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 04.07.2025

    Madras High Court Quashes Customs Demand for EODCs Issued After 17 Years

    The Madras High Court has quashed a Bond Enforcement cum Demand Notice issued by the Customs Department after a 17-year delay, citing it as inordinate and unreasonable. The case, filed by M/s Chemplast Sanmar Ltd., involved non-production of Export Obligation Discharge Certificates (EODCs) under the Advance Authorisation Scheme.

    Background of the Case

    • Petitioner: M/s Chemplast Sanmar Ltd., a star export house and manufacturer of specialty chemicals
    • Period of Dispute: Imports made between 1998 and 2000 under 24 Advance Licences issued by DGFT
    • Customs Action: Issued show cause cum demand notice in 2019β€”17 years later, citing non-submission of EODCs
    • Petitioner’s Defense:
      • Produced EODCs for 13 out of 24 licences
      • Cited inability to retrieve remaining EODCs due to passage of time
      • Argued that such a long delay is unfair and violates principles of natural justice

    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: Madras High Court

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  • CESTAT Chennai Rules Production Norms Can’t Justify Excise Demand Without Proof

    CESTAT Chennai Rules Production Norms Can’t Justify Excise Demand Without Proof

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 04.07.2025

    CESTAT Chennai Rules Production Norms Can’t Justify Excise Demand Without Proof

    The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai has delivered a major relief to M/s Adsorbent Carbons Pvt. Ltd., Tuticorin, by dismissing the Revenue’s appeal and allowing the assessee’s cross appeals. The Tribunal found no basis for the allegations of clandestine removal of Granulated Activated Carbon (GAC) and held that duty demands based on unverified production norms were unsustainable.

    Case Background

    • The appellant manufactures Granulated Activated Carbon from coconut shells.
    • The case arose from a series of show cause notices (SCNs) alleging that the assessee failed to maintain proper production records, particularly absorption capacity data, as required under Rule 10 of the Central Excise Rules, 2002.
    • The department alleged clandestine removal, based on assumptions from norms laid down by the Coconut Development Board.
    • Original demands of over β‚Ή32 lakh in Central Excise Duty along with interest and penalty were confirmed in 2016.
    • Later, fresh demands were raised for subsequent periods.

    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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  • Madras HC Affirms DGFT’s Authority on Capital Goods Classification Under EPCG

    Madras HC Affirms DGFT’s Authority on Capital Goods Classification Under EPCG

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 03.07.2025

    Madras HC Affirms DGFT’s Authority on Capital Goods Classification Under EPCG

    The Madras High Court reaffirmed that the Customs Department cannot override the classification of capital goods as determined by the DGFT under the Export Promotion Capital Goods (EPCG) Scheme. The Court held that the customs authorities are bound by the EPCG licence issued by the DGFT unless it has been withdrawn or proved fraudulent.

    Background of the Case

    The appellant, M/s. Adyar Gate Hotel Ltd., imported lighting equipment and fittings in 1999 under an EPCG licence issued by the DGFT, which categorically classified the goods as capital goods. Despite this, the customs authorities denied concessional duty benefit, claiming the goods did not qualify as capital goods under Notification No. 28/97-Cus dated 01.04.1997.

    The case underwent prolonged litigation for over two decades, involving:

    • Denial of concessional duty in 1999.
    • Multiple rounds of appeals before the CESTAT.
    • Remand by the CESTAT following CBEC Circular No. 62/2002, which favoured importers like hotels using goods for rendering services.
    • Refund finally granted in 2018, but interest on delayed refund remained disputed.

    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: Madras High Court

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  • CESTAT Chennai Remands Classification Dispute on Flavour Compounds for Fresh Adjudication

    CESTAT Chennai Remands Classification Dispute on Flavour Compounds for Fresh Adjudication

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 03.07.2025

    CESTAT Chennai Remands Classification Dispute on Flavour Compounds for Fresh Adjudication

    The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Chennai remanded a long-standing classification dispute concerning the import of Mixtures of Odoriferous Substances (MOS) used in flavour manufacturing back to the Adjudicating Authority for fresh adjudication. The case involved M/s. Givaudan India Pvt. Ltd. and its former director.

    Case Summary

    • Appellants: M/s. Givaudan India Pvt. Ltd. and its Director
    • Department Allegation: Misclassification of 26 imported MOS compounds
    • Original Classification: Subheadings under CTH 1302, 2906, and 3302.90.90
    • Department Proposal: Reclassification under CTH 3302.10 (Compound alcoholic preparations used for manufacture of beverages)
    • Issue: Whether the imported flavour compounds were of a kind used in the manufacture of beverages

    The Directorate of Revenue Intelligence (DRI) alleged that the products contained ingredients such as ethyl alcohol, isopropyl alcohol, and propylene glycol, and were hence compound alcoholic preparations. The department also initiated proceedings for denial of exemption, confiscation, and imposition of penalties under Sections 111(m), 114A, and 112(a) 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 Chennai

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  • CESTAT Delhi- Customs Cannot Reclassify Goods Beyond Show Cause Notice

    CESTAT Delhi- Customs Cannot Reclassify Goods Beyond Show Cause Notice

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 03.07.2025

    CESTAT Delhi- Customs Cannot Reclassify Goods Beyond Show Cause Notice

    The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Delhi, has held that customs authorities cannot travel beyond the scope of the Show Cause Notice (SCN) when classifying imported goods. The Tribunal ruled in favor of the appellant, setting aside the demand of Countervailing Duty (CVD) amounting to β‚Ή27.74 lakh.

    Case Background

    • Importer: M/s. Dharampal Satyapal Ltd., Greater Noida
    • Goods: Three machines – Crumbler DFZL-1500, Plansifter MPAK-228, and Discharge Airlock MPSJ-22/22
    • Purpose: Used in processing Areca Nuts (supari) for manufacturing pan masala
    • Declared Classification: CTH 84371000 (Machines for cleaning, sorting, or grading seeds or dried vegetables)
    • Department’s Claim: Reclassification under CTH 84798200 (general-use crushing/sorting machines) attracting 12.5% CVD
    • Two show cause notices were issued: Dated 08.02.2016 and 07.09.2016 β€” both alleging incorrect classification and short payment of duty

    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 Chennai Quashes β‚Ή10 Lakh Penalty on Freight Forwarding Executive

    CESTAT Chennai Quashes β‚Ή10 Lakh Penalty on Freight Forwarding Executive

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 02.07.2025

    CESTAT Chennai Quashes β‚Ή10 Lakh Penalty on Freight Forwarding Executive

    The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Chennai has set aside a penalty of β‚Ή10 lakhs imposed on Appellant, Assistant Manager-Sales at Al-Barrak Shipping Agencies Pvt. Ltd., in a red sanders smuggling case. The Tribunal ruled that there was no evidence of abetment or knowledge on the part of the appellant in the attempted illegal export of red sanders, a prohibited item.

    Background of the Case

    • A consignment falsely declared as β€œRagi” was intercepted by the DRI at Chennai Port.
    • Upon inspection, red sander logsβ€”a prohibited export itemβ€”were discovered instead.
    • The shipping bill was filed by a CHA on behalf of M/s A.I Enterprises, and Shri Elango had facilitated documentation and logistics.
    • The adjudicating authority imposed a penalty of β‚Ή10,00,000 on Appellant under Section 114(i) of the Customs Act, 1962, alleging abetment of smuggling.

    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 Chandigarh Dismisses Customs Appeals in Metal Scrap Valuation

    CESTAT Chandigarh Dismisses Customs Appeals in Metal Scrap Valuation

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 02.07.2025

    CESTAT Chandigarh Dismisses Customs Appeals in Metal Scrap Valuation

    The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) Chandigarh, via Final Order Nos. 60650–60742/2025 dated 30.06.2025, dismissed 93 appeals filed by the Revenue against M/s Vardhman Sales Agency and reaffirmed the principles of natural justice and lawful valuation under the Customs Act, 1962.

    Background of the Case

    • M/s Vardhman Sales Agency, an importer based in Faridabad, imported metal scrap through 93 Bills of Entry at ICD Piyala.
    • The declared transaction value was β‚Ή35.56 crore with self-assessed customs duty of β‚Ή7.70 crore.
    • Customs authorities enhanced the assessable value unilaterally based on NIDB (National Import Database) data, raising the duty to β‚Ή9.38 crore.
    • Although the importer initially paid the enhanced duty under protest to avoid demurrage, they challenged the re-assessment before the Commissioner (Appeals).

    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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  • CAAR Mumbai Clarifies Customs Classification of Wireless Communication Modules

    CAAR Mumbai Clarifies Customs Classification of Wireless Communication Modules

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 01.07.2025

    CAAR Mumbai Clarifies Customs Classification of Wireless Communication Modules

    The Customs Authority for Advance Rulings (CAAR), Mumbai, has issued a detailed ruling in favour of ONYX Components & Systems Pvt. Ltd., clarifying the classification of various communication modules under the Customs Tariff Act, 1975. The modules in question include GSM/GPRS (2G), LTE (4G), NR (5G), NB-IoT, and GPS modules. These are now to be classified under Customs Tariff Item (CTI) 8517 79 90 as “Parts of other apparatus for transmission or reception of voice, images or other data.”

    Background of the Case

    ONYX Components approached CAAR to seek an advance ruling under Section 28H of the Customs Act, 1962, for classification of cellular and GPS modules imported primarily through the Hyderabad Air Cargo Complex. The company imports these multi-component integrated circuits, which are used by OEMs in a wide range of IoT devices, modems, vehicle tracking systems, and similar wireless network-connected equipment.

    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: CAAR Mumbai

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  • CESTAT Mumbai Sets Aside Confiscation of Steel Scrap for Want of PSIC

    CESTAT Mumbai Sets Aside Confiscation of Steel Scrap for Want of PSIC

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 01.07.2025

    CESTAT Mumbai Sets Aside Confiscation of Steel Scrap for Want of PSIC

    The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Mumbai set aside the confiscation order against M/s White Rock Industries LLP for importing Light Melting Steel Scrap without a valid Pre-Shipment Inspection Certificate (PSIC). The Tribunal directed that the consignment be inspected by an expert agency to determine its suitability for home consumption.

    Background of the Case

    M/s White Rock Industries imported a consignment of Light Melting Steel Scrap through Nhava Sheva Port, which was seized by Customs on the ground of non-submission of PSIC, as required under Para 2.51 of the Handbook of Procedure, FTP 2023, read with CBIC Circular No. 48/2016 and DGFT Trade Notice No. 19/2017.

    The Additional Commissioner of Customs passed an order for:

    • Absolute confiscation under Section 111(d) of the Customs Act, 1962,
    • Imposition of redemption fine of β‚Ή60,000 for re-export under Section 125, and
    • Penalty of β‚Ή1.7 lakhs on the importer and β‚Ή5,000 on the customs broker under Section 112(a).

    The order was upheld by the Commissioner (Appeals), prompting the importer to appeal before 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 Mumbai

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