Delhi High Court Imposes ₹50K Costs On Customs For “Harassing” Companies Importing Body Massagers

The Delhi High Court has slammed the Customs Department for “unnecessarily harassing” two entities involved in import of body massagers.Petitioners' import goods were confiscated for alleged mis-declaration of sex toys as body massagers. While ordering their provisional release, the Court had previously asked the Department to come up with a uniform policy permitting or prohibiting the...

DGFT Calls For Information On Export-Related Non-Tariff Measures, Testing And Certification Requirements

The Directorate General of Foreign Trade (DGFT) has called for information on Non-Tariff Measures and certification requirements to be submitted within 7 days of issuance of this Trade Notice through an online form. To facilitate easy access to export credit, cross-border factoring support, the Export Promotion Mission (EPM) was announced in the Union Budget 2025-26. The EPM is...

No Further Anti–Profiteering Action Required Once Contractor Remits Residual ITC Benefit: GSTAT New Delhi

The Goods and Services Tax Appellate Tribunal (GSTAT), Principal Bench at New Delhi, has held that when a contractor voluntarily remits the residual input tax credit (ITC) benefit identified by the Directorate General of Anti‑Profiteering (DGAP) to its principal, no separate anti-profiteering action is required under Section 171 of the Central Goods and Services Tax Act, 2017...

Customs | Oral Waiver Of SCN Untenable In Law, Continued Detention Of Goods Illegal: Delhi High Court

The Delhi High Court has held that continued detention or seizure of goods by the Customs Department would be untenable in law, where the Show Cause Notice or the personal hearing have been waived via an oral waiver.A division bench of Justices Prathiba M. Singh and Shail Jain was dealing with a challenge to detention of Petitioner's gold chain weighing 54 grams.Briefly put, Petitioner...

Karnataka High Court Orders Refund Of ₹10 Crore, Says Payment During GST Search Was 'Not Voluntary' U/S 74(5) CGST Act

The Karnataka High Court held that the assessee's payment of Rs. 10 crores could not be treated as a voluntary payment under Section 74(5) of the CGST Act (Central Goods and Services Tax Act), as the DRC-03 shows 'NIL' entries for both interest and penalty. The bench observed that the 'NIL' entries clearly indicated that the payment was made by the assessee under coercion and...

Statement Made Before Customs Officer U/S 108 Customs Act Over Goods Seizure Not Admissible In Evidence: Delhi High Court

The Delhi High Court has held that statements made by an assessee to the Customs Department under Section 108 of the Customs Act 1962, upon seizure of its goods, is not admissible as evidence in court of law.“Statements under Section 108 would not be admissible in evidence,” said a division bench of Justices Prathiba M. Singh and Shail Jain.Section 108 deals with the power of customs...

Cannot Cancel GST Registration Without Passing Reasoned Speaking Order: Allahabad High Court

The Allahabad High Court has held that while cancelling GST registrations, authorities must pass reasoned and speaking orders. It held that doing otherwise would render the order unsustainable in the eyes of the law. “Once the impugned cancellation order has been passed without putting any proper notice or affording any opportunity of hearing to the petitioner, the same itself is...

S.110 Customs Act | Extension To Issue SCN Must Be Granted Before Expiry Of Initial Six-Month Period: Delhi High Court

The Delhi High Court has made it clear that the six-month extension contemplated under Section 110 of the Customs Act 1962 for issuance of a show cause notice after detention of goods by the Customs must be issued before expiry of the initial six-month window.For context, Section 110 deals with Seizure of goods. It stipulates that where any goods are seized, and no notice is given within...

GSTAT Drops Proceedings Against Eclat Serum Supplier After DGAP Fails To Trace Gujarat Firm

The GST Appellate Tribunal at Delhi recently dropped anti profiteering proceedings against Shree Suktam Enterprise, a Gujarat supplier in the chain of biotech company S R Lifesciences. The tribunal observed that the Director General of Anti Profiteering (DGAP) was unable to trace the firm or obtain evidence to determine whether the benefit of a 10 percent GST rate reduction on the skin...

'Estimation Theory Doesn't Apply To Sham Purchases': ITAT Mumbai Restores Full Disallowance Of ₹26.49 Lakh

The Income Tax Appellate Tribunal (ITAT) Mumbai has held that where purchases are conclusively proven to be bogus and the assessee fails to substantiate the genuineness of suppliers, the entire purchase amount must be added to income and the benefit of estimating profit element cannot be applied. A Bench of Smt. Beena Pillai (Judicial Member) and Shri Omkareshwar Chidara...

Delhi HC Allows Time-Barred Appeal Against Customs' Confiscation Of Gold, Says Traveller Cannot Be Left Remediless Due To Wrong Legal Advice

The Delhi High Court recently allowed an air traveller to prefer a time-barred appeal against confiscation of gold by the Customs Department, upon his arrival from Thailand.In doing so, a division bench of Justices Prathiba M. Singh and Shail Jain said, “the Petitioner cannot be rendered completely remediless in this matter as he may have proceeded on the legal advice.”The Petitioner...

Supreme Court Leaves Open Question Whether Customs Can Seize Goods Which Left Port

The Supreme Court recently refused to entertain an appeal against the Customs, Excise and Service Tax Appellate Tribunal (“CESTAT”) view that once goods are cleared from the port, customs authorities lose their power to confiscate them for violations such as non-compliance with license requirements. However, the bench of Justices Manoj Misra and Ujjal Bhuyan left open the question...