Mere Introduction To Freight Forwarder Does Not Prove Intent To Evade Customs Duty: CESTAT Chennai

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai, on 15 October held that merely introducing an importer to a freight forwarder does not establish involvement in customs duty evasion or justify a penalty under the Customs Act, 1962. Technical Member M. Ajit Kumar set aside the Rs. 1 lakh penalty imposed on Chirag Jayant Shah, an assistant manager at A.E. Logistics Pvt. Ltd., Mumbai, for allegedly facilitating the import of undervalued branded glass stones. The Bench...

CKD Electric Two-Wheelers Without Battery, Charger Not Eligible For Customs Duty Exemption: CESTAT Delhi

The Customs, Excise and Service Tax Appellate tribunal (CESTAT), New Delhi, has denied concessional customs duty to an importer of electric two-wheelers in completely knocked down (CKD) condition because the kits lacked components required under the applicable exemption notification.A Bench of Officiating President Dr. Rachna Gupta and Technical Member Hemambika R. Priya, however, upheld their classification as complete electric two-wheelers under Rule 2(a) of the General Rules for...

Customs Can't Withhold Detained Goods Without Stay Of Confiscation Order: Delhi High Court

The Delhi High Court has observed that merely because the Customs Department has challenged an order before a revisional authority, it cannot withhold detained goods in the absence of any interim protection or stay against the operation of the order.The Division Bench of Justices Avneesh Jhingan and Shail Jain made the observation while dealing with a petition filed by a woman seeking release of her gold jewellery detained by Customs authorities at the Delhi airport.Petitioner had arrived from...

Delhi High Court Refuses To Condon 694 days Customs Appeal Delay Over Wife's Illness

The Delhi High Court has refused to condone a delay of 694 days in filing a customs appeal, observing that the appellant continued his business despite his wife's illness but made no effort for two years to ascertain the outcome of the proceedings.The Division Bench of Justices Avneesh Jhingan and Shail Jain dismissed the appeal filed against CESTAT order rejecting Appellant's application seeking condonation of delay.Appellant had submitted that his wife was undergoing treatment for cancer since...

DRI/CBIC Headquarters In Delhi Cannot Confer Jurisdiction Over Goods Detained In UP: Delhi High Court

The Delhi High Court has held that the location of the headquarters of the Directorate of Revenue Intelligence (DRI) or the Central Board of Indirect Taxes and Customs (CBIC) in Delhi does not confer territorial jurisdiction on the High Court to entertain a challenge against detention of goods at an Inland Container Depot (ICD) in Dadri, Uttar Pradesh.The Division Bench of Justices Avneesh Jhingan and Shail Jain dismissed a writ petition filed by M/s Pradeep Industries and others, holding that...

Customs Cannot Detain Cattle Feed As Prohibited Goods Without Sufficient Grounds: Madras High Court

The Madras High Court on 28 September held that Customs authorities cannot treat imported cattle feed as prohibited goods merely on allegations of diversion for human consumption, particularly when laboratory reports indicate that the goods are unfit for human consumption.A Division Bench comprising Justices Anita Sumanth and S. Raveekumar upheld the direction to release the consignment against sufficient indemnity in an appeal filed by Customs authorities against S.R. Rajarajendiran, proprietor...

Freshly Manufactured Goods Cannot Replace Re-Imported Goods For Customs Duty Exemption: CESTAT Kolkata

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Kolkata has ruled that goods re-imported for repairs cannot be replaced with freshly manufactured goods to claim customs duty exemption, even if they match in description and quality. Dismissing Crescent Foundry Company Private Limited's appeal, the tribunal held that Notification No. 158/95-Cus. requires the same goods to be re-exported after repairs or reconditioning.“This condition makes it clear that the goods which are to be...

Calcutta High Court Declines To Hear Plea Alleging Torture By DRI Officials, Says Matter Falls Under Revenue Bench

A Calcutta High Court bench has declined to hear a plea alleging that Directorate of Revenue Intelligence (DRI) officials tortured three individuals during interrogation and forced them to execute an affidavit and declaration. The court held that the main challenge concerned customs summons and fell under the roster dealing with revenue matters.“Considering the above and going through the summons and the averments made in the petition, this court finds that the petitioners have mainly challenged...

CESTAT Chennai Says Suzuki Hayabusa Imported Via Two Ports Form One Vehicle, Upholds ₹10.36 Lakh Duty

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 6 October held that importing a motorcycle in separate parts through different ports cannot defeat the customs duty and restrictions applicable to a complete vehicle when the evidence establishes that the consignments form a single motorcycle. A Bench comprising Judicial Member Ajayan T.V. and Technical Member M. Ajit Kumar partially allowed an appeal filed by R. Dewakar, proprietor of Sri Vinayaka...

Customs Dispute Over Car, Cash Confiscation Go To CESTAT, Not Revision Authority: Madras High Court

The Madras High Court on 1 October held that a customs dispute concerning confiscation of a vehicle and Indian currency seized in connection with alleged gold smuggling has to be challenged before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), and not through a revision application before the Central Government. Justice C. Saravanan granted S. Michael Kennadi liberty to approach the CESTAT against the First Appellate Authority's order, while declining to interfere with the...

Deletion Of Certain Parameters Does Not Make Refined Palmolein 'Crude Palm Oil' For Customs Duty: CESTAT Hyderabad

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Hyderabad has held that deletion of acid value and total carotenoid parameters from a customs exemption notification did not mean that refined or processed palmolein would qualify as “Crude Palm Oil” for concessional customs duty.The Bench of Judicial Member Angad Prasad and Technical Member P. Anjani Kumar observed that the exemption could not be denied merely because the goods failed to meet parameters that were no longer part of...

Cannot Challenge Customs Duty Condition For Gold Release After Failing To Challenge Adjudication Order: Delhi High Court

The Delhi High Court has held that a person cannot belatedly challenge the condition requiring payment of customs duty for release of confiscated gold after having failed to challenge the original adjudication order imposing that condition.The Division Bench of Justices Avneesh Jhingan and Shail Jain made the observation while dismissing a writ petition seeking to quash customs duty of ₹2,71,193 and detention charges of ₹2,02,842 imposed upon Petitioner in respect of a 98-gram gold kada detained...