𝐀𝐚𝐝𝐫𝐢𝐤𝐚𝐚 𝐋𝐚𝐰 𝐎𝐟𝐟𝐢𝐜𝐞𝐬 (𝐀𝐋𝐎)

Tag: #TaxLitigations

CESTAT Kolkata Quashes DRI-Issued Show Cause Notice

ALO Law Office- IDT Tax I Arbitration I Litigation

Date: 07.10.2025

CESTAT Kolkata Quashes DRI-Issued Show Cause Notice

This Article has been written by Shri Ravi Shekhar Jha, Advocate based in New Delhi. The views expressed are based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.

In a significant ruling, the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Kolkata Regional Bench, has set aside an order demanding differential duty from M/s Beriwala Impex Pvt. Ltd. The case revolved around the authority of Directorate of Revenue Intelligence (DRI) officers to issue Show Cause Notices (SCNs) under Section 28 of the Customs Act, 1962. This decision reaffirms the legal principles established by the Supreme Court in the Canon India case and sheds light on the scope of powers exercised by DRI officers under the Customs Act.

Background of the Case

M/s Beriwala Impex Pvt. Ltd. imported LDPE re-processed granules through various ports, including Kolkata, Chennai, and ICD Tughlakabad. The Directorate of Revenue Intelligence (DRI) alleged undervaluation of the imported goods, leading to a short levy of customs duty. Following an investigation, the DRI issued a Show Cause Notice (SCN) demanding differential duty of Rs. 96,42,062, along with interest, confiscation of goods, and penalties.

The appellant challenged the SCN, arguing that DRI officers were not “proper officers” under Section 28 of the Customs Act, as clarified by the Supreme Court in Canon India Pvt. Ltd. v. Commissioner of Customs.

Source: CESTAT Kolkata

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October 7, 2025
CESTAT Delhi Upholds Correct Classification and Valuation of Imported Goods
ALO Law Office- IDT Tax I Arbitration I Litigation

Date: 07.10.2025

CESTAT Delhi Upholds Correct Classification and Valuation of Imported Goods

This Article has been written by Shri Ravi Shekhar Jha, Advocate based in New Delhi. The views expressed are based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.

In a landmark decision, the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), New Delhi, Principal Bench, has ruled in favor of M/s Simpex Industries in Customs Appeal No. 50071 of 2025. The appeal challenged the order dated 08.05.2024 passed by the Principal Commissioner of Customs (Import), ICD Tughlakabad, New Delhi, which had reclassified imported goods and rejected their declared value. The Tribunal’s decision, pronounced on 06.10.2025, is a significant victory for importers and reinforces the importance of judicial discipline and adherence to procedural requirements.

Background of the Case

M/s Simpex Industries, a regular importer of photographic equipment, filed an appeal against the Principal Commissioner’s order that:
1. Reclassified their imported goods (LED continuous lighting equipment) from Customs Tariff Heading (CTH) 9006 99 00 (photographic flashlights) to CTH 9405 40 10 (lamps and lighting fittings).
2. Rejected the declared value of Rs. 22.68 crore and re-determined it as Rs. 27.94 crore, citing alleged undervaluation.
The appellant argued that the goods were correctly classified under CTH 9006 99 00 and that the declared value was accurate. They relied on previous favorable orders passed by the Commissioner (Appeals) and the Joint Commissioner, which had been accepted by the department.

Source: CESTAT Delhi

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October 7, 2025
CESTAT Allahabad Quashed Penalties in Dry Dates Import Case Over Mis-Declared Origin
ALO Law Office- IDT Tax I Arbitration I Litigation

Date: 06.10.2025

CESTAT Allahabad Quashed Penalties in Dry Dates Import Case Over Mis-Declared Origin

This Article has been written by Shri Ravi Shekhar Jha, Advocate based in New Delhi. The views expressed are based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.

In a significant ruling, the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Allahabad, has quashed penalties imposed on several appellants, including M/s Shakti Traders and Appellant, in a high-profile case involving the import of dry dates. The case revolved around allegations of mis-declaration of the country of origin to evade higher customs duties. The Tribunal’s decision, delivered on August 30, 2024, highlights the importance of evidence-based adjudication and adherence to procedural fairness.

Background of the Case

The case stemmed from imports of dry dates by three entities: M/s Raghunath Laxminarayan, M/s B.N. International, and M/s Shakti Traders. The Directorate of Revenue Intelligence (DRI) alleged that the importers, in connivance with Appellant, mis-declared the country of origin as the UAE instead of Pakistan to evade the 200% customs duty imposed on Pakistani-origin goods under Notification No. 05/2019-Cus dated February 16, 2019. The goods were classified under a lower-duty tariff heading, attracting only 20% duty.

The DRI relied on several pieces of evidence, including:
1. A report from M/s Atul Rajasthan Date Palms Limited (ARDPL) suggesting the goods were of “Indian Subcontinent” origin.
2. Statements from related parties recorded under Section 108 of the Customs Act, 1962.
3. Alleged non-compliance with Food Safety and Standards (Packing and Labelling) Regulations, 2011.
4. Export declarations obtained from the shipping line, which mentioned “PK” (Pakistan) as the country of origin.
Based on these findings, the Commissioner of Customs (Preventive), Lucknow, ordered the confiscation of goods and imposed hefty penalties on the importers and Appellant.

Source: CESTAT Allahabad

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October 6, 2025
CESTAT Delhi Ruled on Provisional Release of Gold Dore Bars Amid Import Dispute
ALO Law Office- IDT Tax I Arbitration I Litigation

Date: 06.10.2025

CESTAT Delhi Ruled on Provisional Release of Gold Dore Bars Amid Import Dispute

This Article has been written by Shri Ravi Shekhar Jha, Advocate based in New Delhi. The views expressed are based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Principal Bench, New Delhi, recently delivered a significant judgment in the case of Tasha Gold Pvt. Ltd. vs. Principal Commissioner of Customs, New Delhi. This case revolved around the provisional release of 27 gold dore bars imported by the appellant, which were seized by the Department of Revenue Intelligence (DRI) on allegations of non-compliance with import conditions.

Background of the Case

Tasha Gold Pvt. Ltd., a refinery, imported 27 gold dore bars under a valid import license issued by the Directorate General of Foreign Trade (DGFT). The import was made under the preferential tariff scheme of Notification No. 96/2008-Cus., as the goods originated from the Republic of Rwanda, a Lesser Developed Country (LDC). However, the DRI seized the consignment, citing alleged violations of Notification No. 50/2017-Cus., including:
1. One gold dore bar weighing less than the prescribed 5 kg.
2. Doubts over the genuineness of the assay certificate.
3. Gold content in some bars marginally exceeding the permissible 95% purity.
The appellant sought provisional release of the goods under Section 110A of the Customs Act, 1962, but their request was denied by the Principal Commissioner of Customs. Aggrieved, the appellant approached the CESTAT.

Source: CESTAT Delhi

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October 6, 2025
CESTAT Mumbai Sets Aside RSP Re-determination in Ceramic Tiles

ALO Law Office- IDT Tax I Arbitration I Litigation

Date: 06.10.2025

CESTAT Mumbai Sets Aside RSP Re-determination in Ceramic Tiles

This Article has been written by Shri Ravi Shekhar Jha, Advocate based in New Delhi. The views expressed are based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.

In a significant ruling, the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Mumbai, has set aside the recovery of differential duty and penalties imposed on M/s Padma Ceramics Pvt Ltd, M/s RAS International, and their director, in connection with the import of ceramic tiles. The case, which revolved around the alleged under-reporting of the retail selling price (RSP) of imported goods, highlights critical aspects of customs law and the limits of authority vested in customs officers.

Background of the Case

The proceedings stemmed from the import of ceramic tiles between June 2003 and September 2005. The Commissioner of Customs (General), Mumbai, had passed orders imposing duty liabilities of ₹44,66,124 on M/s Padma Ceramics Pvt Ltd and ₹98,48,522 on M/s RAS International under Section 28 of the Customs Act, 1962. Additionally, penalties of ₹10,00,000 and ₹20,00,000 were imposed on Appellant under Section 112 of the Customs Act, 1962. The goods were also held liable for confiscation under Section 111(m) of the Customs Act, 1962.

The crux of the case was the allegation that the appellants had under-reported the RSP of the imported tiles, which formed the basis for calculating the additional duty of customs under Section 3(1) of the Customs Tariff Act, 1975. The customs authorities argued that subsequent evidence revealed higher prices at which the tiles were sold to consumers, justifying the recovery of differential duty.

Source: CESTAT Mumbai

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October 6, 2025
CESTAT Bangalore Allows Refund of Special Additional Duty (SAD)

ALO Law Office- IDT Tax I Arbitration I Litigation

Date: 04.10.2025

CESTAT Bangalore Allows Refund of Special Additional Duty (SAD)

This Article has been written by Shri Ravi Shekhar Jha, Advocate based in New Delhi. The views expressed are based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.

In a significant ruling, the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Bangalore, has delivered justice to M/s Tommy Hilfiger Arvind Fashion Pvt. Ltd., allowing their appeal for the refund of Special Additional Duty (SAD) paid on imported readymade garments. This decision marks a crucial win for importers navigating the complexities of customs duties and refund claims.

Background of the Case

M/s Tommy Hilfiger Arvind Fashion Pvt. Ltd., a prominent importer and retailer of readymade garments, had paid SAD under Section 3(5) of the Customs Tariff Act, 1975, on their imports. The company subsequently sold these garments through its branches across India, paying VAT or Central Sales Tax (CST) as applicable. To ensure proper tracking of the imported goods, the company employed a customized software system, ‘Voyager,’ which generated unique alpha-numeric codes for each item upon receipt at their warehouse.

The appellant filed eight refund claims amounting to Rs. 12,50,439/- under Notification No. 102/2007-Cus., supported by requisite documents, including a Chartered Accountant (CA) certificate. However, the claims were rejected by the adjudicating authority and later by the Commissioner (Appeals) on the grounds that the description of goods in the bills of entry did not match the sales invoices, allegedly failing to establish a one-to-one correlation between the imported goods and those sold.

Source: CESTAT Bangalore

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October 4, 2025
CESTAT Delhi Sets Aside Revocation of Customs Broker License

ALO Law Office- IDT Tax I Arbitration I Litigation

Date: 04.10.2025

CESTAT Delhi Sets Aside Revocation of Customs Broker License

This Article has been written by Shri Ravi Shekhar Jha, Advocate based in New Delhi. The views expressed are based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.

In a landmark decision, the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi, has set aside the revocation of the Customs Broker (CB) license of M/s. ICS Cargo. This case highlights the importance of adhering to procedural timelines and the need for evidence-based adjudication in regulatory matters. The judgment, delivered on January 6, 2023, is a significant win for the appellant and underscores the principles of fairness and justice in administrative proceedings.

Background of the Case

M/s. ICS Cargo, a Customs House Agent (CHA), faced allegations of facilitating customs clearance for undervalued imports of power tools and other goods. The Directorate of Revenue Intelligence (DRI) alleged that the appellant had connived with importers to misuse Importer Exporter Codes (IEC) for monetary gain, violating the Customs Broker Licensing Regulations (CBLR), 2018. Based on these allegations, the Commissioner of Customs (Airport & General), Delhi, revoked the appellant’s license, forfeited the security deposit, and imposed penalties. The appellant challenged the revocation, arguing that the proceedings were barred by time and that the allegations were baseless and unsupported by evidence.

Source: CESTAT Delhi

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October 4, 2025
Bombay High Court Upholds Importers Right to Re-Testing of Seized Goods

ALO Law Office- IDT Tax I Arbitration I Litigation

Date: 04.10.2025

Bombay High Court Upholds Importers Right to Re-Testing of Seized Goods

This Article has been written by Shri Ravi Shekhar Jha, Advocate based in New Delhi. The views expressed are based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.

In a significant ruling by the Bombay High Court, the case of Appellant vs. Union of India & Others sheds light on the importance of trade facilitation measures and the Government of India’s commitment to the ‘Ease of Doing Business’ policy. This judgment, addresses the contentious issue of re-testing seized goods and the procedural hurdles faced by importers.

Background of the Case

The petitioner, Appellant, a business proprietor, sought relief against the refusal by Customs Authorities to re-test seized cashew nuts. The goods were initially tested in a Maharashtra laboratory, yielding favorable results. However, subsequent samples were sent to a Kerala laboratory, which reported adverse findings. The petitioner argued that the refusal to re-test the goods in Maharashtra was unreasonable and contrary to the guidelines outlined in Public Notice No. 97 of 2017.

Source: Bombay High Court

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October 4, 2025
CESTAT Delhi Upholds Correct Classification of Imported Vehicles

ALO Law Office- IDT Tax I Arbitration I Litigation

Date: 03.10.2025

CESTAT Delhi Upholds Correct Classification of Imported Vehicles

This Article has been written by Shri Ravi Shekhar Jha, Advocate based in New Delhi. The views expressed are based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.

In a significant victory for Polaris India Private Limited, the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi, has ruled in favor of the company in a long-standing dispute over the classification of its imported vehicles. The case, which revolved around the classification of Polaris’ Ranger (non-electric), Ranger (electric), and Brutus vehicles, has been a contentious issue since 2019. The tribunal’s decision, delivered on July 3, 2023, sets a precedent for the interpretation of customs classifications for specialized vehicles.

The Background of the Case

Polaris India, a wholly-owned subsidiary of Polaris Industries Inc., USA, imports All-Terrain Vehicles (ATVs) and other off-road vehicles designed for utility purposes. Between 2013 and 2016, Polaris imported several models, including the Ranger (non-electric), Ranger (electric), and Brutus vehicles, classifying them under Customs Tariff Headings (CTH) 8704 and 8709, which pertain to vehicles designed for the transportation of goods.

However, the Principal Commissioner of Customs (Import), New Delhi, reclassified these vehicles under CTH 8703, which covers motor vehicles principally designed for the transportation of persons. This reclassification led to a demand for differential customs duty of Rs. 41,61,609, along with penalties and fines. Polaris India challenged this decision, asserting that their vehicles were primarily designed for transporting goods and performing utility functions.

Source: CESTAT Delhi

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October 3, 2025
CESTAT Mumbai Quashes ₹3.09 Crore Customs Duty Demand on Forklift Parts

ALO Law Office- IDT Tax I Arbitration I Litigation

Date: 03.10.2025

CESTAT Mumbai Quashes ₹3.09 Crore Customs Duty Demand on Forklift Parts

This Article has been written by Shri Ravi Shekhar Jha, Advocate based in New Delhi. The views expressed are based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.

In a significant ruling, the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Mumbai, has set aside a demand for differential customs duty and penalties imposed on Jungheinrich Lift Truck India Pvt Ltd and other appellants. The case revolved around the import of forklift parts and the applicability of additional duties of customs under the Customs Tariff Act, 1975, and the Legal Metrology (Packaged Commodities) Rules, 2011.

Background of the Case

The dispute arose from the import of forklift parts by Jungheinrich Lift Truck India Pvt Ltd between June 2014 and June 2017 through the Air Cargo Complex (ACC), Mumbai, and Jawaharlal Nehru Customs House (JNCH), Nhava Sheva. The customs authorities had re-determined the value of the imported goods and demanded a differential duty of ₹3.09 crore for imports through ACC and ₹7.75 lakh for imports through JNCH. Additionally, penalties were imposed under Sections 114A and 114AA of the Customs Act, 1962.

The crux of the issue was whether the imported forklift parts were subject to the Legal Metrology (Packaged Commodities) Rules, 2011, which mandate the declaration of a “retail sale price (RSP)” for pre-packaged commodities. The customs authorities argued that the goods were liable for additional duties based on the RSP, while the appellants contended that the goods were not pre-packaged commodities intended for retail sale.

Source: CESTAT Mumbai

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October 3, 2025