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Tag: #litigation

  • 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 “TWITCHELL 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 ₹73 Lakh Drawback Refund to Nidhi Distributors After 22 Years

    CESTAT Kolkata Orders ₹73 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 ₹73 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 ₹73 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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  • CESTAT Chennai Grants SAD Refund to LG Electronics

    CESTAT Chennai Grants SAD Refund to LG Electronics

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 29.05.2025

    CESTAT Chennai Grants SAD Refund to LG Electronics

    The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai Bench has allowed the appeal filed by M/s LG Electronics India Pvt. Ltd., setting aside the denial of ₹1,35,179/- of Special Additional Duty (SAD) refund under Notification No. 102/2007-Cus. dated 14.09.2007.

    Case Background

    • Appellant: M/s LG Electronics India Pvt. Ltd., Greater Noida
    • Commissionerate: Chennai Seaport
    • Appeal No.: Customs Appeal No. 42340 of 2014
    • Date of Order: 16 February 2024
    • Tribunal Members: Mrs. Sulekha Beevi (Judicial) and Mr. Vasa Seshagiri Rao (Technical)

    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- Honest Valuation Error Not Penalized

    CESTAT Delhi- Honest Valuation Error Not Penalized

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 28.05.2025

    CESTAT Delhi- Honest Valuation Error Not Penalized

    The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Principal Bench, New Delhi has allowed a group of appeals filed by M/s Delphi Automotive Systems Pvt. Ltd., along with its directors and employees, setting aside a customs duty demand of ₹25,53,891 and penalties imposed under Sections 114A and 114AA of the Customs Act, 1962.

    The Tribunal held that the valuation error—treating Ex-Works prices as FOB for air imports—was a genuine mistake and not a willful misstatement. Hence, the extended limitation period and penalties were held to be inapplicable.

    Case Background

    • Appellant: Delphi Automotive Systems Pvt. Ltd. & its Directors
    • Nature of Imports: Goods imported by air on Ex-Works basis
    • Dispute: Incorrect computation of transport cost under Rule 10(2) of the Customs Valuation Rules, 2007
    • Duty Demanded: ₹25.53 lakh
    • Penalties: Under Sections 114A and 114AA
    • Relevant Provisions:
      • Section 14 of Customs Act, 1962 (Valuation)
      • Rule 10(2) of Valuation Rules (Inclusion of freight & insurance)
      • Fifth proviso to Rule 10(2) (Air freight cap at 20% of FOB value)

    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 Bangalore Quashes SVB Valuation and Royalty Loading on Imports

    CESTAT Bangalore Quashes SVB Valuation and Royalty Loading on Imports

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 27.05.2025

    CESTAT Bangalore Quashes SVB Valuation and Royalty Loading on Imports

    The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Bangalore Bench allowed the appeal filed by M/s Chem Rend Chemicals Co. Pvt. Ltd., quashing the 100% loading of invoice value and rejection of declared transaction value on imports from its parent company, Chem Trend, USA. The Tribunal also set aside the addition of royalty under Rule 10(1)(c) of the Customs Valuation Rules, 2007.

    Background of the Case

    • Appellant: Chem Rend Chemicals Co. Pvt. Ltd., Bangalore
    • Imported Goods: Industrial mould release agents and dye lubricants
    • Supplier: Related party – Chem Trend, USA
    • DRI/Customs Allegation: Declared value not at arm’s length; addition of royalty payments to assessable value
    • SVB Order: 100% value loading and inclusion of royalty under Rule 10(1)(c)
    • Commissioner (Appeals) Decision: Set aside loading and royalty, but upheld rejection of declared value and remanded case for redetermination
    • CESTAT Appeal: Against partial rejection of declared value and remand for redetermination

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

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

    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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  • CESTAT Chandigarh Rejects Customs Valuation Based on DRI Alert

    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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