ALS

π€πšππ«π’π€πšπš π‹πžπ πšπ₯ π’πžπ«π―π’πœπžπ¬ (𝐀𝐋𝐒)

Tag: #Facebook

  • 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

    Disclaimer

    Handy Download:

    ALO DocumentDownload

    Write to us at office@aadrikaalaw.com

    Tel: +91-11-4999 2707 I +91-9999005379

    www.aadrikaalaw.com

  • 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

    Disclaimer

    Handy Download:

    ALO Document Download

    Write to us at office@aadrikaalaw.com

    Tel: +91-11-4999 2707 I +91-9999005379

    www.aadrikaalaw.com

  • 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

    Disclaimer

    Handy Download:

    ALO DocumentDownload

    Write to us at office@aadrikaalaw.com

    Tel: +91-11-4999 2707 I +91-9999005379

    www.aadrikaalaw.com

  • 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

    Disclaimer

    Handy Download:

    ALO Document Download

    Write to us at office@aadrikaalaw.com

    Tel: +91-11-4999 2707 I +91-9999005379

    www.aadrikaalaw.com

  • 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

    Disclaimer

    Handy Download:

    ALO DocumentDownload

    Write to us at office@aadrikaalaw.com

    Tel: +91-11-4999 2707 I +91-9999005379

    www.aadrikaalaw.com

  • CESTAT Allahabad Quashes Bank Guarantee Condition for Provisional Release of Seized Betel Nuts

    CESTAT Allahabad Quashes Bank Guarantee Condition for Provisional Release of Seized Betel Nuts

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 01.07.2025

    CESTAT Allahabad Quashes Bank Guarantee Condition for Provisional Release of Seized Betel Nuts

    The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Allahabad, in Final Order No. 70433/2025 dated 30.06.2025, ruled in favour of M/s B P Wire Industry, setting aside the condition of furnishing bank guarantees for the provisional release of seized betel nuts and betel nut powder. The case arose out of alleged misdeclaration and subsequent seizure under the Customs Act, 1962.

    Background of the Case

    M/s B P Wire Industry, a Star Export House, had imported betel nuts under the MOOWR Scheme for the manufacture and export of flavoured supari. These goods were detained and later seized by the Directorate of Revenue Intelligence (DRI) on the grounds of alleged misdeclaration under Sections 111(m) and 111(o) of the Customs Act for imports, and under Section 118(i) for exports.

    The DRI later withdrew its objection to the provisional release and communicated “No Objection” via a letter dated 25.09.2024. However, the Commissioner (Customs Preventive), Lucknow, imposed a stringent bank guarantee condition for provisional release, leading the appellant to approach the Delhi High Court and then 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 Allahabad

    Disclaimer

    Handy Download:

    ALO Document Download

    Write to us at office@aadrikaalaw.com

    Tel: +91-11-4999 2707 I +91-9999005379

    www.aadrikaalaw.com

  • Delhi High Court Upholds SAD Refund & Latest Customs Notification

    Delhi High Court Upholds SAD Refund & Latest Customs Notification

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 30.06.2025

    Delhi High Court Upholds SAD Refund & Latest Customs Notification

    The Delhi High Court in Commissioner of Customs (ICD Import) vs. Suzuki Motorcycle India Pvt. Ltd., has upheld the right of the importer to claim refund of Special Additional Duty (SAD) under Section 27 of the Customs Act, 1962, despite the one-year limitation condition prescribed in Notification No. 102/2007-Customs, as amended.

    The Court dismissed the Revenue’s appeal and upheld the CESTAT’s decision, marking a key precedent for SAD refund claims and interpretation of refund limitations under customs notifications.

    Case Background

    • Suzuki Motorcycle India Pvt. Ltd. had imported goods on payment of Special Additional Duty (SAD) and later sold them in the domestic market, paying VAT/CST, as required under Notification No. 102/2007-Cus.
    • The company sought refund of SAD under the said notification but filed claims beyond the one-year period stipulated by the 2008 amendment to the notification (Notification No. 93/2008-Cus).
    • The Department rejected the refund, citing delay, leading to the matter being contested before CESTAT, which allowed the refund.
    • The Department filed an appeal before the Delhi High Court, relying on the Bombay High Court’s ruling in CMS Info Systems Ltd. v. UOI [2017 (349) ELT 236 (Bom)], which had upheld the one-year limitation.

    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

    Disclaimer

    Handy Download:

    ALO DocumentDownload

    Write to us at office@aadrikaalaw.com

    Tel: +91-11-4999 2707 I +91-9999005379

    www.aadrikaalaw.com

  • CESTAT Kolkata Ruling in Favour of Global Entrade on Project Import Dispute

    CESTAT Kolkata Ruling in Favour of Global Entrade on Project Import Dispute

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 30.06.2025

    CESTAT Kolkata Ruling in Favour of Global Entrade on Project Import Dispute

    The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Kolkata has quashed a β‚Ή12.95 lakh customs duty demand raised against M/s Global Entrade, an importer based in Assam, under the Project Import Regulations, 1986 (PIR 1986). The Tribunal held that the Show Cause Notice (SCN) issued by the customs department was time-barred, having been served nearly six years after the relevant import transaction.

    Case Background

    M/s Global Entrade had registered a contract with the customs authorities for importing machinery to establish a cold storage facility in Guwahati. The contract was registered under Project Import Registration No. S37(P)PROJ-08/2014 A(6), and was backed by Essentiality Certificates from the Ministry of Food Processing Industries, qualifying the import for concessional duty under Notification No. 12/2012-Customs, Entry Sl. No. 515.

    The machinery was imported via Bill of Entry No. 7356551 dated 12.11.2014, and provisional assessment was completed with applicable 5% Basic Customs Duty and NIL CVD, as per the project import benefit.

    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

    Disclaimer

    Handy Download:

    ALO DocumentDownload

    Write to us at office@aadrikaalaw.com

    Tel: +91-11-4999 2707 I +91-9999005379

    www.aadrikaalaw.com

  • CESTAT Chennai Upholds Classification of Tomato Dry Flavour Under CTH 3302

    CESTAT Chennai Upholds Classification of Tomato Dry Flavour Under CTH 3302

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 30.06.2025

    CESTAT Chennai Upholds Classification of Tomato Dry Flavour Under CTH 3302

    The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai, has allowed the appeal of M/s Symrise Pvt. Ltd., ruling that the imported product β€œTomato Dry Flavour” is correctly classifiable under Customs Tariff Heading (CTH) 3302 1010 as an odoriferous substance, and not under CTH 2106 9060 as previously contended by customs authorities.

    The Tribunal’s Final Order No. 40499/2023 dated 28.06.2023, sets aside the earlier denial of concessional basic customs duty (BCD) under Notification No. 21/2002, Sl. No. 119.

    Background of the Case

    • Symrise Pvt. Ltd. imported Tomato Dry Flavour and classified it under CTH 3302 1010, claiming a 10% BCD exemption.
    • The Revenue reclassified the product under CTH 2106 9060 (food preparations not elsewhere specified), triggering a demand for differential duty under Section 28 of the Customs Act, 1962.
    • The Commissioner (Appeals) upheld the reclassification, prompting the present 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 Chennai

    Disclaimer

    Handy Download:

    ALO DocumentDownload

    Write to us at office@aadrikaalaw.com

    Tel: +91-11-4999 2707 I +91-9999005379

    www.aadrikaalaw.com

  • CESTAT Allahabad- Customs Broker Not Liable for Importer’s Valuation

    CESTAT Allahabad- Customs Broker Not Liable for Importer’s Valuation

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 30.06.2025

    CESTAT Allahabad- Customs Broker Not Liable for Importer’s Valuation

    The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Allahabad, vide Final Order No. 70034/2025 dated 09 January 2025, has set aside the penalty imposed on M/s HIM Logistics Pvt. Ltd., a licensed Customs Broker, in a case alleging under-valuation of goods imported by M/s Shiv Shakti Enterprises.

    The Tribunal reiterated that a Customs Broker cannot be held liable for valuation disputes where bills of entry are filed strictly based on documents submitted by the importer.

    Background of the Case

    • HIM Logistics Pvt. Ltd., holding a CHA licence (No. R07/2004), filed Bills of Entry on behalf of M/s Shiv Shakti Enterprises.
    • Customs alleged undervaluation, comparing declared value (USD 1.02/sq. meter) with previously accepted value (USD 1.24/sq. meter).
    • The importer accepted the enhanced valuation during investigation and paid differential duties, interest, and penalties.
    • Penalties of β‚Ή10,000 and β‚Ή5,000 under Section 112(a) of the Customs Act, 1962 were imposed on HIM Logistics by the Adjudicating Authority and upheld by the Commissioner (Appeals), CGST, Noida.

    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

    Disclaimer

    Handy Download:

    ALO DocumentDownload

    Write to us at office@aadrikaalaw.com

    Tel: +91-11-4999 2707 I +91-9999005379

    www.aadrikaalaw.com