Cut, Curved Molybdenum Sheets Are Finished Articles; CESTAT Delhi Upholds Higher Customs Duty On Siria Impex

Molybdenum sheets that are cut, curved and shaped for use in automobile lighting cease to be “sheets” and become finished articles, the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi has held.A bench of Judicial Member Dr. Rachna Gupta and Technical Member Hemambika R. Priya delivered the ruling.The tribunal allowed the department's appeals against Siria Impex Private Limited and restored the demand of differential duty along with the penalty. The dispute arose from...

CESTAT Delhi Orders Interest Payable On ₹113.69 Crore Deposited By Nikon India During Supreme Court Appeal

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Delhi, has ruled in favour of Nikon India in a customs dispute over import of digital cameras, holding that the Customs department must pay interest on Rs. 113.69 crore deposited under directions of the Supreme Court. A Bench of President Justice Dilip Gupta and Technical Member Hemambika R. Priya held that once the Supreme Court directed refund of the amount with interest, the department was bound to follow that direction...

CESTAT Quashes ₹10.8 Crore Customs Duty Demand, Rejects Reliance On Wikipedia, Internet Material

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Delhi, has set aside a Rs. 10.8 crore customs duty demand and penalties against a marble importer, finding that in this case the allegation of diversion of imported marble into the domestic market was based on Wikipedia and other internet material, as well as unproven third-party statements. The tribunal noted that the department had relied on “Wikipedia and other information available on the internet” to conclude that “Harmony...

CESTAT New Delhi Sets Aside Non-Cooperative Finding In Anti-Dumping Investigation Against Essilor

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi, has set aside the finding treating Essilor Group as “non-cooperative” in an anti-dumping investigation on imports of semi-finished ophthalmic lenses from China, holding that such a finding was not justified. "The recommendation made by the designated authority for imposing anti-dumping duty on Essilor Group by treating it to be non-cooperative is not justified. It is, accordingly, set aside. The designated authority...

Pre-2022 Iron Ore Exports Cannot Be Reassessed On DMT Basis; WMT Applies: Orissa High Court

The Orissa High Court has held that iron ore exports made before the 2022 change in law must be assessed on Wet Metric Tonne (WMT) basis prevailing at the time, and cannot later be reassessed on Dry Metric Tonne (DMT) basis. The court held, “It is trite that under all taxing statutes to consider levy of tax/duty it is to be determined when exactly did the taxable event occur? It is with reference to that point of time, that the chargeability or leviability of the tax or duty, as the case may...

Additional Evidence Cannot Be Rejected Solely For Non-Filing During Adjudication: CESTAT Delhi

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) in New Delhi has held that additional evidence may be permitted at the appellate stage if it is necessary to enable the Tribunal to pass orders or for sufficient cause. It said such evidence cannot be rejected solely because it was not produced during adjudication, recalling its earlier order in a gold seizure dispute. Relying of Rule 23 of the Customs, Excise and Service Tax Appellate Tribunal (Procedure) Rules, 1982, the...

No Finding On Confiscation, No Penalty: CESTAT Delhi Sets Aside Excise Penalties On Five Taxpayers

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi, has recently set aside penalties imposed under Excise Rulels on five taxpayers after finding that the adjudication order did not record any finding that the goods were liable to confiscation. “There has to be a discussion and a finding that the goods are liable to confiscation. In the absence of such a finding penalties under rule 26 of the Central Excise Rules could not have been imposed. This is clear from a...

CESTAT Delhi Sets Aside ₹33.78 Crore Excise Demand On Sun Home Appliances Over Limitation

The Principal Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi, has set aside a central excise duty demand of Rs. 33.78 crore against Sun Home Appliances Private Limited. It held that the extended period of limitation was wrongly invoked and that statements recorded during investigation could not be relied upon without following the mandatory procedure under Section 9D of the Central Excise Act, 1944 (which requires that statements be tested through...

CESTAT Ahmedabad Quashes Penalty On Gujarat Trader Over Urea Imports on High Sea Sales Basis Through MMTC

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) at Ahmedabad has set aside confiscation and penalties imposed on Deep Traders, Gujarat, holding that its import of technical-grade urea through a State Trading Enterprise on a high sea sales basis did not violate the Foreign Trade Policy. In a high-seas sales transaction, the State Trading Enterprise imports the goods and sells them to an Indian buyer while the shipment is still at sea, with the buyer completing customs clearance....

CESTAT Mumbai Rules Importer Entitled To DEPB Benefit Despite Subsequent Cancellation Of Scrips

The Mumbai bench of the Customs, Excise, and Service Tax Appellate Tribunal has held that Saguna Poultry Farm Ltd. cannot be denied duty exemption on imports made using DEPB scrips that were valid at the time of use, even if those scrips were cancelled later. DEPB (Duty Entitlement Pass Book) scrips are transferable licences issued to exporters that can be used to pay customs duty on imports. “The scrips were valid when they were utilized by the appellant. Subsequent cancellation would have no...

Bluetooth Earphones Are Earphones For Customs Classification, Not Data Transmission Devices: CESTAT New Delhi

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT) in New Delhi on Wednesday held that Bluetooth earphones remain earphones for customs classification and do not become data transmission devices merely because they use wireless connectivity. A bench of President Justice Dilip Gupta and Technical Member P.V. Subba Rao held that the primary function of such devices is sound output, which makes them earphones.“Bluetooth Wireless Earphones are, objectively and physically,...

State VAT Exemption Cannot Override SAD Liability On Imports: CESTAT Chennai

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 24 April dismissed an appeal filed by Enterprise International Ltd., holding that exemption from VAT in Uttar Pradesh cannot be used to avoid payment of 4% Special Additional Duty (SAD) on imported silk fabrics. A Bench comprising Judicial Member P. Dinesha and Technical Member Vasa Seshagiri Rao examined whether SAD liability can be avoided on the basis of a state-level VAT exemption and whether a demand...