ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 14.08.2025
PayTM gets Duty benefits and Penalty waiver relief from CESTAT
The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) recently delivered a significant judgment in the case of One97 Communications Limited (Paytm) regarding the import of Paytm Soundbox Versions 1 and 2. The case revolved around whether these devices were eligible for a concessional rate of Basic Customs Duty (BCD) under Serial No. β 20 of Notification No. β 57/2017. This blog delves into the details of the case, the arguments presented, and the final decision.
Background of the Case
One97 Communications Limited, the parent company of Paytm, imported Paytm Soundbox devices between 2019 and 2022. These devices are portable audio-activated smart devices that notify merchants of successful payments made by customers. β The company classified these devices under Customs Tariff Item (CTI) 8517 62 90 and claimed a concessional BCD rate of 10% under Serial No. β 20 of Notification No. β 57/2017.
However, the customs department issued two show-cause notices alleging that the devices were 4G LTE compliant and therefore fell under the exclusionary clauses of the notification, making them ineligible for the concessional duty rate. β The department demanded differential duty and imposed penalties.
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 Delhi
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