ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 23.07.2025
CESTAT Bangalore Upholds ISO Standards in Newsprint Classification
In a landmark ruling that reinforces the importance of adhering to international testing standards in customs classification, the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Bangalore, in Final Order No. 21063/2025, allowed the appeal of M/s. Malayala Manorama Co. Ltd., setting aside a duty demand of βΉ30.44 lakhs on imported newsprint.
Background of the Case
The dispute arose from the import of 243.83 metric tonnes of paper in reels by Malayala Manorama under Bill of Entry No. 100946 dated 18.05.1999, declaring the goods as βNewsprintβ falling under Customs Tariff Heading (CTH) 4801.80, which attracted concessional or nil rate of duty.
Customs authorities initially allowed clearance on a provisional basis. However, laboratory testing later indicated that the mechanical wood pulp (MWP) content in the imported paper was less than 65%, disqualifying it as “newsprint” under Chapter Note 3 to Chapter 48 of the Customs Tariff Act. Consequently, the goods were reclassified under CTH 480260/480290, and a differential duty of βΉ30.44 lakhs was demanded.
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 Bangalore
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