ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 24.09.2025
CESTAT Delhi Rejected DRIβs Reclassification and Extended Limitation
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 landmark decision, the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Principal Bench, New Delhi, has ruled in favor of M/s Videocon D2H Limited (now Dish TV India Limited) in a long-standing dispute over the classification of imported smart cards. The case, which revolved around the classification of “smart cards” used in set-top boxes, has significant implications for importers and the interpretation of customs laws. β
Background of the Case
The dispute arose when the Directorate of Revenue Intelligence (DRI) alleged that Videocon had misclassified imported “smart cards” under Customs Tariff Item (CTI) 8523 52 90, which pertains to smart cards, to avail duty exemptions. β The DRI contended that the cards were not “smart cards” but parts of set-top boxes, classifiable under CTI 8529 90 90, and thus not eligible for the claimed exemptions. β The DRI issued a show cause notice (SCN) demanding a duty of βΉ56.47 crore, along with penalties and interest, and sought to confiscate the goods under Section 111(m) of the Customs Act, 1962.
βVideocon, along with its executives, challenged the DRI’s findings, asserting that the imported cards met the definition of “smart cards” under Chapter Note 5(b) of Chapter 85 of the Customs Tariff and were correctly classified.
Source: CESTAT Delhi
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