2025-VIL-2134-CESTAT-DEL-CU
  1. Home
  2. 2025-VIL-2134-CESTAT-DEL-CU

CUSTOMS CESTAT Cases

Customs – Duty Exemption on re-import of part of imported goods in terms of Notification No.94/96-Cus. dated 16.12.1996 - Appellant exported tractors claiming duty drawback and duty credit. The tractors were exported in Semi Knock Down (SKD) condition along with tyres and tubes procured from an Indian supplier. Some of the tyres and tubes were rejected by tCustoms - Manipulation of Focus Market Scheme Scrips, Customs duty payment using fraudulently enhanced scrip, Liability of Importer - Appellant imported goods and cleared them under Bill of Entry using a Focus Market Scheme Scrip. The scrip was fraudulently manipulated and its value was increased fifty times from the original. The scrip was then used by three different importers, including the appellant, to pay Customs duty - Whether the importer is liable to pay the customs duty and penalty when the scrip used for payment of duty was fraudulently manipulated, even though the importer itself did not manipulate the scrip – HELD - When the exemption benefit is availed on forged/fake licenses/scrips, the importer is liable to pay the customs duty. The fraud vitiates everything, and such forged/fake scrips are void ab initio. Therefore, the Department is justified in invoking the extended period of limitation and demanding the Customs duty from the appellant, even though the appellant did not manipulate the scrip - The demand of customs duty and interest from the appellant, as well as the penalty under Section 114A of the Customs Act are upheld - The appeal is partly allowed by setting aside the penalty under Section 114AA on the appellant and upholding the rest of the impugned order - Whether the penalty under Section 114AA of the Customs Act can be imposed on the appellant – HELD - The penalty under Section 114AA can be imposed only if a person knowingly or intentionally makes, signs, or uses any declaration, statement, or document that is false or incorrect. In this case, there is no evidence that the appellant had the knowledge that the scrip was manipulated. The appellant was not the one who fraudulently manipulated the scrip. Therefore, the penalty imposed under Section 114AA cannot be sustained.he buyer due to quality concerns, and the appellant filed B/E for re-importing the rejected tyres and tubes, claiming customs duty exemption under Notification No.94/96-Cus. dated 16.12.1996 - Whether the appellant is eligible for the Customs duty exemption under Notification No.94/96-Cus. on the re-imported tyres and tubes – HELD - The appellant has satisfactorily established the identity of the re-imported tyres and tubes as the same goods that were exported earlier along with the tractors. The notification requires the re-imported goods to be the same as the exported goods, and this condition is fulfilled even if the appellant re-imports only a part of the exported goods (i.e., the tyres and tubes) and not the entire tractor in SKD condition - The appellate authority has chosen to reject the case holding that since the goods exported were tractors and that reimported were only tyres and tubes, appellant are not the same as the goods exported. If the recipient of the goods has raised quality issues only with the tyres and tubes, it would be opposed to commercial logic to expect the entire shipment of tractor in SKD condition to be returned for the benefit of the notification to be extended - The documentary evidence, such as the invoices, packing lists, and markings on the tyres, corroborated the appellant's claim that the re-imported goods were the same as the exported goods - The impugned order is set aside granting the appellant the customs duty exemption under Notification No.94/96-Cus – The appeal is allowed
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Weekly Tax Recap

By Kasi Viswanathan V

Weekly Summary

VIL Video

GSTR-9 & GSTR-9C of FY24-25
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?