Customs Cases

1

Customs - 2008 - TMI - 4024 - CESTAT, BANGALORE

EOU - procured goods free of Customs & Excise duty - export obligation was fulfilled partially due to business exigencies - as the appellant had put to use the imported capital goods for fulfillment of export obligation, duty liability will be computed after giving the benefit of depreciation - Moreover, the domestic sale without taking the approval of the Development Comm. does not appear a very serious offence - Penalty reduced & original authority is directed to recompute duty liability

2

Customs - 2008 - TMI - 4023 - CESTAT, BANGALORE

Approached for conversion of DEEC shipping bills to DEEC-cum-Drawback shipping bill, to claim drawback - When major portion of the raw materials used has suffered duty, there is no reason to deny drawback - failure on the part of the exporter to export the goods under one scheme will automatically not deprive him of the benefit of the drawback - only obligation on the part of the exporter is that the goods have to be used & value added product has to be exported - drawback is justified

3

Customs - 2008 - TMI - 4022 - HIGH COURT GUJARAT

Refund - whether the amount of refund or licence can be renewed or fresh licence can be issued, when the payment of duty has not been made in cash and only debit entry has been made in DEPB Script - respondents are directed to re-validate the licence to the extent he has made debit entry in DEPB script - but matter will be examined by authority whether on revalidating the licence, can there be a case of unjust enrichment - authority is directed to pass appropriate order in accordance with law

4

Customs - 2008 - TMI - 4020 - HIGH COURT DELHI

Petitioner requested Designated Authority to impose anti-dumping duties on ferro alloys dumped in India - Designated Authority appointed u/r 3, if called upon to do ""sunset review"" is obliged to carry out the same, it can't decline to do so & the Central Govt. must consider the recommendation made by Des. Authority & take a decision thereon - request of Petitioners for sunset review should be considered expeditiously u/r 23 of Cus. T. R. (Identification, Assessment & Collection of Anti Dum. Duty

5

Customs - 2008 - TMI - 4017 - SUPREME COURT

Import of Orange Shock Tube at reduced price because of increase in quantum of import - revenue proceeded against importer on account of undervaluation as declared value is substantially lower then actual value - revenue not placed any contemporaneous import of identical goods - Merely because the supplier was holding 30% of equity in share capital of importer, doesn't establish mutuality of interest as no equity was held by the importer in foreign company - transaction value acceptable

6

Customs - 2008 - TMI - 3994 - CESTAT, BANGALORE

Imported goods, HP server for testing (data processing equipment) - contention of Revenue is that as per Exim Policy, import of computers including PCs & Laptops are restricted & they actually require licence - held that the restriction of the import of second-hand computers including personal computers & laptop wouldn't be applicable to server - server are different from PCs & laptop computers, which are actually stand-alone equipments - no reason to exclude them from scope of Capital Goods

7

Customs - 2008 - TMI - 3991 - CESTAT, BANGALORE

Iron ore confiscated on basis of test reports of samples because as per report iron content in the iron ore was 65.5%. - assessee at the time of export submitted a certificate issued to the effect that the content of Fe in the ore was 62.90% which was well within the limit of 64% - there is chance of evaporation of moisture & a test conducted after lapse of 6 months time, would not give the same iron content which was found at the time of export- Revenue's allegation is not justified

8

Customs - 2008 - TMI - 3990 - CESTAT MUMBAI

On basis of unsigned invoice, Revenue proceeded against assessee for undervaluation - import of broodmare - payment for the mare was made against exchange permit issued by the RBI - no evidence of remittance of any amount over and above that covered by the foreign demand draft - Supplier has also confirmed that price shown in invoice(which was presented by importer) was correct - Allegation of undervaluation on basis of said invoice(which is not at the time of import) is not justified

9

Customs - 2008 - TMI - 3989 - CESTAT, BANGALORE

EOU - imported raw materials and CG u/not. 196/94-Cus. without payment of duty - Aqua Culture Industry - There was a viral disease and order of SC was also not in favour of the continuance of the Aqua Culture units, so export obligation could not be fulfilled - however, appellants actually commenced commercial production and they supplied the goods to the other exporters in India - hence, payment of duty at depreciated value is available from the date of commencement of commercial production

10

Customs - 2008 - TMI - 3986 - CESTAT, MUMBAI

Synthetic polyester fabrics seized - smuggling - goods declared in packing list attached to B/E & goods actually seized weren't matching - There is possibility that appellant after importing the goods and paying duty, on B/E, might have repacked the goods & stored it in the godown - held that goods were not of smuggled nature as goods seized were not in original package but were in loose condition - full mazhar value of the goods is entitled as goods have lost their value & demand in 4 years

11

Customs - 2008 - TMI - 3985 - CESTAT, CHENNAI

Amendment or modification of IGM (Import General Manifest) & Bill of entry - Steamer Agent had applied for amendment of IGM for substituting the name of the appellants with new person, as appellant had financial difficulty to clear the goods - Amendment is allowed, if there is no fraudulent intention or substantial revenue - Appeal is allowed to enable amendment of IGM and the Bill of Entry, but new person will produce documentary evidence of its title to the goods, to do the same

12

Customs - 2008 - TMI - 3984 - CESTAT, CHENNAI

Assessee fraudulently obtained transferability endorsements from the licensing authority, for transfer of Advance license - For this violation assessee cannot be penalized, however Customs officer could have preferred appeal to the appellate authority u/s 18 of the FTDR Act - Where the action proposed u/s 111 stands dropped by commissioner, there is no question of invoking Section 112 for imposing penalty - Moreover there is no confiscation because subject goods were not imported by assessee

13

Customs - 2008 - TMI - 3982 - CESTAT, BANGALORE

Assessee, hospital cleared certain equipments like computerized gas electrolyte analyzer system claiming benefit of exemption from Customs duty u/not. 64/88 - non-compliance of condition - free treatment to on an average 40% patient - . ""On an average"", needn't be on daily or monthly basis but at least on a yearly basis, they should show that they had treated 40% of the outpatients free - condition not fulfilled - Demand sustainable but penalty reduced

14

Customs - 2008 - TMI - 3980 - CESTAT, KOLKATA

Offence of supplying blank consignment notes committed by proprietor of transport co. - merely because the appellant (son of proprietor of transport company) gave a statement as a power of attorney holder, he cannot be visited with a penalty - either the proprietor or the proprietary concern should have been penalized - penalty on son set aside

15

Customs - 2008 - TMI - 3979 - CESTAT, MUMBAI

Which of the adj. authority shall adjudicate in the de novo adjudication proceedings Commissioner or Addl. Comm. - Both of them issued corrigendum to SCN, directing applicant & noticees to explain and show cause - an adjudication by the Commissioner of Customs would be appropriate because in the original proceedings the appeal against the ld. Additional Commissioner's order was before the Tribunal - Commissioner is directed to conduct the ad. proceedings as per direction of HC

16

Customs - 2008 - TMI - 3976 - CESTAT, MUMBAI

Non-appearance of assessee appellant on date of hearing - when the ad. authority is re-considering the issue almost after 7½ years, it was incumbent upon him to grant another hearing if the appellant has not appeared on the date of personal hearing - there is a violation of principles of natural justice and the heavy duty liability of Rs.1.13 crores and almost equivalent penalty, could not be saddled without grant of personal hearing to the appellant - appeals are allowed by way of remand

17

Customs - 2008 - TMI - 3975 - CESTAT, MUMBAI

Refund of the amount of interest paid by the respondent on the warehousing charges - as per Circular No. 475/30/90 warehousing interest levied under Section 61(2) of the Customs Act is distinguishable from Customs duty - Accordingly, provisions of Section 27 will not apply to refund of interest recovered u/s 61(2) - However, the period under the Limitation Act may be applicable - Refund allowed in view of impugned circular

18

Customs - 2008 - TMI - 3973 - CESTAT, MUMBAI

In the present case, first ROM application was dismissed on 14-6-2007 - in another case Larger Bench of the Tribunal has held that the second application for rectification of some alleged mistake in an order rejecting an application for rectification, is not maintainable - ROM application dismissed

19

Customs - 2008 - TMI - 3970 - CESTAT, BANGALORE

Refund - Interest - On basis of earlier decision which is decided in favour of assessee, both the extra duty deposited and also the pre-deposit should have been refunded to the applicant within a reasonable period of time taking the minimum time required for processing - In view of the clear cut directions of the Board circulars, dept. is directed to implement the Tribunal's order without further delay by granting the refund due to the party along with interest in accordance with law