ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 23.09.2025
CESTAT Delhi clarified the Correct classification of IC-Codecs
This Article has been written by Shri Ravi Shekhar Jha, Advocate based in New Delhi. The views expressed are based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.
In a significant ruling by the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi, M/s Samsung India Electronics Pvt. Ltd. emerged victorious in a long-standing dispute over the classification of imported goods. The case revolved around whether the imported “IC-Codecs” should be classified under Customs Tariff Item (CTI) 8542 39 00, as claimed by Samsung, or under CTI 8517 62 90, as determined by the Principal Commissioner of Customs. โ The decision, pronounced on July 22, 2024, has far-reaching implications for importers and the electronics industry.
Background of the Case
Samsung India Electronics Pvt. โ Ltd., engaged in the manufacture of mobile phones and tablets, imports “IC-Codecs” for use in its production processes. โ These goods are electronic integrated circuits that function as compressors/decompressors when mounted on a Printed Circuit Board (PCB). Samsung classified these goods under CTI 8542 39 00, which covers “Other Electronic Integrated Circuits,” and availed a concessional duty rate under a notification dated March 1, 2005. โ
However, during an audit, the Customs Department argued that the goods should be classified under CTI 8517 62 90 as “Other Communication Apparatus,” attracting higher customs duty and Integrated Goods and Services Tax (IGST). โ This led to a demand for differential duty amounting to Rs. โ 1.89 crore, along with interest.
Source: CESTAT Delhi
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