Tag: #LegalView

  • CESTAT Chennai Clarifies Finished Leather Export Criteria

    CESTAT Chennai Clarifies Finished Leather Export Criteria

    Date: 24.06.2025

    The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai, allowed the appeal of M/s Nabisha Leathers and set aside the imposition of export duty, penalty, and fine imposed for alleged export of β€œunfinished leather.” The case revolved around a nuanced interpretation of DGFT’s Public Notice on finished leather norms and marks a vital precedent on how such technical regulations should be interpreted.

    • Nabisha Leathers filed a shipping bill in March 2010 to export 37 cartons of β€œGoat Shoe Suede Upper Leather.”
    • A leather expert from Customs flagged 13 cartons of grey-coloured leather, suspecting non-compliance with DGFT Public Notice No. 21/2009-14.
    • A sample was sent to the Central Leather Research Institute (CLRI), which reported non-compliance citing “absence of snuffing” on the grain as the reason.
    • Based on the CLRI report, Customs:
      • Confiscated the consignment under Section 113(d) of the Customs Act, 1962.
      • Levied 60% export duty on the consignment.
      • Imposed a penalty of β‚Ή10,000.
      • Allowed redemption on fine of β‚Ή50,000.

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  • CESTAT Bangalore- Personal Penalty on Co-noticees Cannot Be Recovered from Refund Sanctioned to Appellant

    CESTAT Bangalore- Personal Penalty on Co-noticees Cannot Be Recovered from Refund Sanctioned to Appellant

    Date: 23.06.2025

    Appellant, while traveling from Bangalore airport, was found carrying undeclared foreign currency worth β‚Ή29.37 lakhs. The currencies included:

    • US$ 100 notes (300 Nos.),
    • Euro 100 (24 Nos.), Euro 50 (163 Nos.),
    • Saudi Riyals 500 (22 Nos.).

    On investigation, it was alleged that these currencies were handed over to him by two individuals – and were being smuggled in violation of the Customs Act, 1962, and FEMA, 1999.

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  • CESTAT Mumbai: Undervaluation Allegations Dismissed Over Invalid Electronic Evidence

    CESTAT Mumbai: Undervaluation Allegations Dismissed Over Invalid Electronic Evidence

    Date: 23.06.2025

    M/s Winsor Enterprises, a Mumbai-based importer of bags and PVC leather cloth, along with its partners, were subjected to an intense investigation by the DRI Surat Unit. The DRI alleged that the appellants had undervalued imported goods from China with the intent to evade customs duty. Based on electronic communications and printouts seized during a search operation in 2017, the Customs Department issued a Show Cause Notice proposing:

    • Reassessment of customs duty under Section 28(4),
    • Confiscation of goods under Section 111,
    • Penalties under Sections 112(a), 114A, and 114AA.

    The adjudicating authority confirmed the demands and imposed total penalties exceeding β‚Ή9 crore.

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  • CESTAT Kolkata Upholds ITC Limited’s Stand Under CTH 2522

    CESTAT Kolkata Upholds ITC Limited’s Stand Under CTH 2522

    Date: 23.06.2025

    M/s ITC Limited, Paperboards & Speciality Papers Division, had imported Quicklime (PCC Lime 0/20MM) for use as a Pulp Conversion Chemical. The company classified the imports under CTH 2522 10 00 (Quicklime), which attracts a concessional rate of duty as a mineral product.

    However, the Customs assessing officer reclassified the goods under CTH 2825 90 90 (Inorganic chemicals – Others) on the basis of laboratory tests, triggering higher customs duties. Orders confirming this classification were passed under Section 17(4) and 17(5) of the Customs Act, 1962 and subsequently upheld by the Commissioner (Appeals).

    ITC challenged the reclassification and the matter reached CESTAT Kolkata, involving multiple appeals from 2019 to 2025.

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  • CESTAT Kolkata Sets Aside Penalties in β‚Ή5.82 Crore Firecracker Seizure

    CESTAT Kolkata Sets Aside Penalties in β‚Ή5.82 Crore Firecracker Seizure

    Date: 21.06.2025

    The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Kolkata has set aside all penalties imposed on six individuals alleged to be involved in the illegal storage and smuggling of firecrackers purportedly of Chinese origin, valued at β‚Ή5.82 crores.

    The case revolved around a town seizure made by the DRI from a godown in Dankuni, West Bengal, where firecrackers were allegedly smuggled and stored in violation of Customs and Explosives laws. However, the Tribunal found multiple procedural lapses and lack of evidence, leading to full relief for the appellants.

    • Date of Seizure: 07–08 August 2021
    • Location: Godown No.1-D, Vidya Complex-1, Dankuni, West Bengal
    • Goods Seized: Firecrackers stored in over 2500 gunny sacks, allegedly of Chinese origin
    • Valuation: β‚Ή5,82,12,560/-
    • Penalties Imposed:
      • β‚Ή10,00,000 – (Alleged Mastermind)
      • β‚Ή5,00,000 – (Company Representative)
      • β‚Ή5,00,000 – (IEC Provider)
      • β‚Ή50,000 each – (Driver, Godown Owner, Misc.)

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  • CESTAT Chennai Rejected Customs Valuation and MIP Allegations

    CESTAT Chennai Rejected Customs Valuation and MIP Allegations

    Date: 21.06.2025

    The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Chennai, has set aside a total penalty of β‚Ή60 crores imposed on M/s. Sindhu Lakshmi Impex, its partners, and an associate entity, M/s. BNM Global Ventures, in a high-profile case concerning the import of black pepper from Sri Lanka. The tribunal quashed the Commissioner of Customs’ Order-in-Original dated 20.11.2020, which had imposed penalties and declared the imports as β€œprohibited” under customs law.

    • Imports in Dispute: 10,79,000 Kgs of Black Pepper imported under various Bills of Entry.
    • Allegations: The Department alleged overvaluation of imports from a related party in Sri Lanka (Lakshmi Export and Import), intended to circumvent the Minimum Import Price (MIP) of β‚Ή500/kg imposed by DGFT Notification No. 21/2015–20 dated 25.07.2018.
    • Key Charges: Improper imports, misdeclaration of value, and violation of Sections 111(m), 111(o), 112, and 114AA of the Customs Act, 1962.

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  • CESTAT Mumbai Upheld Third-Party Invoicing Under ISFTA

    CESTAT Mumbai Upheld Third-Party Invoicing Under ISFTA

    Date: 20.06.2025

    Ansell India Protective Products Pvt. Ltd., Navi Mumbai, imported Latex Rubber Surgical Gloves from Sri Lanka under the India-Sri Lanka Free Trade Agreement (ISFTA) and claimed concessional duty under Notification No. 26/2000-Customs read with Notification No. 19/2000-Customs (N.T.), supported by a valid Certificate of Origin (COO).

    However, the Department denied the benefit, objecting to the β€œthird-country invoicing” arrangement, as the commercial invoice was issued by Ansell Global Center (Malaysia), although the goods originated from Sri Lanka.

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  • CESTAT Chandigarh Upholds CENVAT Credit on Endorsed Bills of Entry

    CESTAT Chandigarh Upholds CENVAT Credit on Endorsed Bills of Entry

    Date: 20.06.2025

    The dispute arose from CENVAT credit claimed by Hero Cycles Ltd. on imported e-bikes and parts brought in by Hero Exports under FMC and DFCE Scrips. These goods were:

    • Imported in CKD condition,
    • Endorsed on the Bill of Entry to Hero Cycles, and
    • Sent directly to their factory for job work and assembly.

    The department rejected the CENVAT credit on the grounds that:

    • Endorsed Bill of Entry is not a valid document under Rule 9 of CENVAT Credit Rules, 2004, and
    • Hero Cycles was not listed as a supporting manufacturer in the respective export licenses under Notification No. 53/2003-Cus. and 90/2006-Cus.

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  • CESTAT Chennai Upholds 90-Day Limit Under CBLR

    CESTAT Chennai Upholds 90-Day Limit Under CBLR

    Date: 20.06.2025

    M/s. Kailash Shipping Services Pvt. Ltd., a licensed Customs Broker, faced suspension of its broker license (License No. R-302/CHA) due to an alleged offence involving the use of a tampered self-sealing permission letter during export clearance at Chennai’s DPE facility in November 2024.

    Although the firm promptly admitted that the mistake was committed by a junior staff member (who was later suspended), the Customs Department issued:

    • Initial Suspension Order under Regulation 16(1) of the Customs Brokers Licensing Regulations (CBLR), 2018.
    • Continued Suspension Order under Regulation 16(2).
    • A subsequent Show Cause Notice (SCN) No. 09/2025 dated 17.03.2025 under Regulation 17(1), received by Customs on 09.12.2024.

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  • CESTAT Ahmedabad- COOs were not proven to be invalid or fake

    CESTAT Ahmedabad- COOs were not proven to be invalid or fake

    Date: 19.06.2025

    The Customs, Excise & Service Tax Appellate Tribunal (CESTAT) Ahmedabad has set aside the demand for anti-dumping duty on Alfakrina Exports, affirming the legal sanctity of Certificates of Origin under preferential trade agreements. The decision underscores the importance of procedural compliance when questioning the origin of goods in the context of international trade.

    Alfakrina Exports had imported five consignments of PVC Sheeting Flex Banners from Malaysia, backed by Certificates of Origin (COO) issued by the Malay Chamber of Commerce. The goods were cleared through Customs at Mundra Port under the concessional duty benefit provided under Notification No. 53/2011-Cus dated 01.07.2011, pertaining to imports from Malaysia.

    However, the Revenue alleged that the goods were actually of Chinese origin, citing Bills of Lading showing prior movement from Shanghai to Malaysia. On this basis, anti-dumping duty under Notification No. 82/2011-Cus dated 25.08.2011 was imposed, ignoring the COO furnished by the appellant.

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