Eastern Broadcast Solutions Pvt. Ltd. & Ors. Vs Commissioner of Customs (Import) & Ors. (Delhi High Court)
The Delhi High Court heard the petition filed by Eastern Broadcast Solutions Pvt. Ltd. (EBSPL) and its directors challenging the Settlement Commission’s order dated 23rd March 2017, which imposed customs duty and penalties on the company and its directors. The challenge was specifically directed at the settlement amount and the penalties imposed. The factual background involves BSPL, a Singapore-based company, which had a contract with the Board of Control for Cricket in India (BCCI) in 2012 to provide broadcast equipment and services for the Indian Premier League (IPL) and other cricket events. EBSPL, an associate of BSPL incorporated in India, was assigned to execute the contract obligations. To perform these obligations, EBSPL imported substantial broadcasting equipment between December 2012 and March 2013 and engaged Broekman Logistics India Pvt. Ltd. as the customs clearing agent.
EBSPL claimed that the equipment was imported temporarily and stored in the Arshiya Free Trade and Warehousing Zone, Panvel, Mumbai, a Special Economic Zone (SEZ). However, while removing the equipment to the domestic tariff area, EBSPL declared the purpose as “DEMO” instead of the actual “Commercial Purpose.” The Directorate of Revenue Intelligence (DRI), based on intelligence, investigated the matter and seized the imports in June 2013. EBSPL had paid approximately Rs. 8.69 crore customs duty under protest before the Show Cause Notice (SCN) dated 18th March 2015, followed by an addendum on 5th January 2016 proposing penalties.
