Incorrect Classification Is Not By Itself Collusion/ Wilful Misstatement U/S 28AAA Customs Act; Prior Determination By DGFT Must: Delhi HC
4 months ago

Incorrect Classification Is Not By Itself Collusion/ Wilful Misstatement U/S 28AAA Customs Act; Prior Determination By DGFT Must: Delhi HC

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The Delhi High Court has held that a misclassification or an incorrect classification of goods to be imported or exported would not ipso facto amount to collusion, wilful misstatement, or suppression of facts under Section 28AAA Customs Act, 1962. “Undisputedly, consequent to the self-assessed Bills of Entry having been accepted and thus liable to be viewed as assessed, the stage of enquiry contemplated in terms of Section 17 of the Customs Act has clearly passed.” Misclassification and Section 28AAA Coming to Section 28AAA, the High Court said the provision would have to be interpreted as contemplating a prior determination on the issue of collusion, wilful misstatement or suppression of facts tainting an instrument, before action relating to recovery of duty could be possibly initiated. However, in the same breath, it added, “Even if it were assumed for the sake of argument that the writ petitioners had wrongly classified or placed articles in question under ITC 68159990, the same would clearly not amount to it being ipso facto assumed that the same amounted to an act of suppression or wilful misstatement.” Customs can't doubt instrument issued under FTDR Act In its 91-page judgment, the Court also pointed out that the MEIS certificate is issued under the provisions of the Foreign Trade Act, 1992 and held that the power to cancel or suspend it vests in the Director General of the licensing authority alone. “Section 28AAA would thus have to be interpreted as contemplating a prior determination on the issue of collusion, wilful misstatement or suppression of facts tainting an instrument issued under the FTDR Act before action relating to recovery of duty could be possibly initiated…Taking any other view would result in us recognizing a parallel or a contemporaneous power inhering in two separate sets of authorities with respect to the same subject.

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History of this topic

'Extra Duty Deposit' Different From Customs Duty, Limitation For Seeking Refund U/S 27 Of Customs Act Is Inapplicable: Delhi High Court
2 weeks, 6 days ago

'Extra Duty Deposit' Different From Customs Duty, Limitation For Seeking Refund U/S 27 Of Customs Act Is Inapplicable: Delhi High Court

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The Delhi High Court has held that an Extra Duty Deposit does not constitute a payment in the nature of customs duty under the scope of Section 27 of the Customs Act, 1962 and thus, the period of limitation for seeking a refund of customs duty under the provision would not apply qua EDD. Petitioner relied on the Department's Circular …

Pendency Of Revenue's Appeal Regarding Classification Of Imported Goods No Ground To Insist On Provisional Assessment U/S 18 Customs Act: Delhi HC
3 months, 1 week ago

Pendency Of Revenue's Appeal Regarding Classification Of Imported Goods No Ground To Insist On Provisional Assessment U/S 18 Customs Act: Delhi HC

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The Delhi High Court has ruled in favour of an importer who was aggrieved by insistence on provisional assessment of duty by the Customs Department, despite an order of the CESTAT with respect to classification of its imported goods. Nonetheless, the Revenue continued to insist on provisional assessment of Petitioner's goods under Section 18 of the Customs Act. Petitioner argued …

Proper Officer Must Provide 'Reason To Doubt' Value Of Goods Declared By Importer Before Initiating Reassessment U/S 17 Customs Act: Delhi HC
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3 months, 3 weeks ago

Proper Officer Must Provide 'Reason To Doubt' Value Of Goods Declared By Importer Before Initiating Reassessment U/S 17 Customs Act: Delhi HC

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The Delhi High Court has held that the proper officer under the Customs Act, 1962 must provide “reasons to doubt” the declared value of imported goods, before proceeding with reassessment under Section 17. The High Court said that it is manifest from Section 17 that before the proper officer commences the process of reassessment, it must come to form an …

Customs Act | Importer Accepting Enhanced Valuation Of Goods For Expeditious Clearance Not 'Waiver' Of Right To Contest Re-Assessment: Delhi HC
3 months, 3 weeks ago

Customs Act | Importer Accepting Enhanced Valuation Of Goods For Expeditious Clearance Not 'Waiver' Of Right To Contest Re-Assessment: Delhi HC

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The Delhi High Court has held that where enhancement of valuation of goods by the proper officer for the purpose of determining Customs duty is accepted by the importer under protest, for expeditious clearance, it cannot be said that the importer has waived its right to question the reassessment. The right to question the correctness of the decision of the …

Incorrect Classification Is Not By Itself Collusion/ Wilful Misstatement U/S 28AAA Customs Act; Prior Determination By DGFT Must: Delhi HC
4 months ago

Incorrect Classification Is Not By Itself Collusion/ Wilful Misstatement U/S 28AAA Customs Act; Prior Determination By DGFT Must: Delhi HC

Live Law  

The Delhi High Court has held that a misclassification or an incorrect classification of goods to be imported or exported would not ipso facto amount to collusion, wilful misstatement, or suppression of facts under Section 28AAA Customs Act, 1962. “Undisputedly, consequent to the self-assessed Bills of Entry having been accepted and thus liable to be viewed as assessed, the stage …

Delhi High Court Quashes Suspension Of License, Issued To Customs House Agent, Finding Order Illegal
1 year, 4 months ago

Delhi High Court Quashes Suspension Of License, Issued To Customs House Agent, Finding Order Illegal

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The Delhi High Court has held that there was proper verification on the part of the Customs House Agent with regard to the genuineness of the Importer-Exporter Code as well as GSTIN.The bench of Justice Yashwant Varma and Justice Dharmesh Sharma observed that mere allegations that some other person was importing goods in the name of the importers, whose names …

Customs Broker Licence Can’t Be Revoked On Mere Charge Of Mis–Declaration And Undervaluation Of The Illegal Imports: CESTAT
1 year, 6 months ago

Customs Broker Licence Can’t Be Revoked On Mere Charge Of Mis–Declaration And Undervaluation Of The Illegal Imports: CESTAT

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The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal has held that the licence cannot be revoked on a mere charge of misdeclaration and undervaluation of illegal imports.The bench of Binu Tamta and Hemambika R. Priya has observed that the punishment has to be commensurate with the misconduct and that the charges against. The Delhi Bench of …

Knowledge Is A Necessary Element For Committing Abetment : Delhi High Court Quashes Penalty Against Customs Broker
1 year, 8 months ago

Knowledge Is A Necessary Element For Committing Abetment : Delhi High Court Quashes Penalty Against Customs Broker

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The Delhi High Court has quashed the penalty against customs brokers on the grounds that knowledge is a necessary element for committing abetment. The bench of Justice Vibhu Bakhru and Justice Amit Mahajan has observed that knowledge of a wrongful act of omission or commission, which rendered the goods liable for confiscation under Section 111 of the Customs Act, is …

Prosecution For Customs Duty Evasion Can't Be Initiated As The Valuation Of The Goods Is Less Than Rs.1 Crore: Delhi High Court
2 years, 9 months ago

Prosecution For Customs Duty Evasion Can't Be Initiated As The Valuation Of The Goods Is Less Than Rs.1 Crore: Delhi High Court

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The Delhi High Court has ruled that the prosecution of the petitioner cannot be initiated under Section 135 of the Customs Act as valuation of the goods is less than Rs.1 Crore. The Director of Revenue Intelligence filed a criminal complaint under Section 132 and 135 of the Customs Act, before the Trial Court. The petitioner stated that there was …

Goods Imported Violating FTDR/DGFT Notifications Are 'Prohibited Goods' Liable For Confiscation Under Customs Act : Supreme Court
3 years, 9 months ago

Goods Imported Violating FTDR/DGFT Notifications Are 'Prohibited Goods' Liable For Confiscation Under Customs Act : Supreme Court

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The Supreme Court has held that peas and pulses, which were imported in violation of the notifications of the Central Government and the Director General of Foreign Trade issued under the Foreign Trade Act, are liable to absolute confiscation under Section 125 of the Customs Act as "prohibited goods".The Court granted a relaxation by allowing re-export of the goods. The …

Anti-Dumping Duty On Imported Goods: In Case Of ‘Negative Findings” By Designated Authority, Appeal U/S.9C Of Customs Tariff Act Possible Before CESAT: Delhi HC [Read Order]
6 years, 5 months ago

Anti-Dumping Duty On Imported Goods: In Case Of ‘Negative Findings” By Designated Authority, Appeal U/S.9C Of Customs Tariff Act Possible Before CESAT: Delhi HC [Read Order]

Live Law  

In an important decision, the Delhi High Court has held that anti-dumping duty on imported goods, in case “negative findings” are recorded by the designated authority of the Central government, then the findings can be appealed against under Section 9C of the Customs Tariff Act before the Customs Excise and Service Tax Appellate Tribunal.What is Dumping?In generic terms,. In an …

Delhi HC reads down Section 28(11) of Customs Act [Read Judgment]
8 years, 10 months ago

Delhi HC reads down Section 28(11) of Customs Act [Read Judgment]

Live Law  

The Delhi High Court has read down Section 28 of the Customs Act holding that the Customs Department cannot seek to rely upon Section 28 of the Act as authorising the officers of the Customs, DRI, the DGCEI etc. to exercise powers in relation to non-levy, short-levy or erroneous refund for a period prior to 8th April 2011 if, in …

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