ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 12.06.2025
CESTAT Mumbai Delivers Sharp Rebuke in Customs Classification Dispute
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai, has allowed the appeals filed by Moti International, and Sunders International, setting aside the βΉ30+ crore duty demand and penalties imposed by the Commissioner of Customs, Nhava Sheva. The Tribunal held that mere import of LED panels and associated components does not constitute import of complete television sets, and thus, the benefit of exemption under Notification No. 12/2012-Cus remains valid.
Background of the Case
The case arose from a detailed investigation initiated by the Directorate of Revenue Intelligence (DRI), which alleged that the appellants were importing complete television sets in disassembled form to evade customs duties. The DRI issued multiple show cause notices spanning over three years, culminating in a consolidated Order-in-Original dated 05 November 2019, passed by the Commissioner (NS-V), Nhava Sheva, which:
- Re-classified 171 bills of entry filed between March 2014 and January 2016,
- Demanded βΉ30.72 crore in differential duty under Section 28(4) of the Customs Act, 1962,
- Imposed penalties of equal amount under Section 114A, and
- Ordered confiscation of goods valued at βΉ80 crore under Section 111(m).
The central allegation was that the appellants imported LED panels and parts in a manner that effectively constituted complete television sets, which were then rebranded and sold as Sony or Samsung without authorization.
This Article has been written by Shri Ravi Shekhar Jha, Advocate Delhi High Court based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.
Source: CESTAT Mumbai
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