ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 03.10.2025
CESTAT Mumbai Quashes βΉ3.09 Crore Customs Duty Demand on Forklift Parts
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, the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Mumbai, has set aside a demand for differential customs duty and penalties imposed on Jungheinrich Lift Truck India Pvt Ltd and other appellants. β The case revolved around the import of forklift parts and the applicability of additional duties of customs under the Customs Tariff Act, 1975, and the Legal Metrology (Packaged Commodities) Rules, 2011. β
Background of the Case
The dispute arose from the import of forklift parts by Jungheinrich Lift Truck India Pvt Ltd between June 2014 and June 2017 through the Air Cargo Complex (ACC), Mumbai, and Jawaharlal Nehru Customs House (JNCH), Nhava Sheva. β The customs authorities had re-determined the value of the imported goods and demanded a differential duty of βΉ3.09 crore for imports through ACC and βΉ7.75 lakh for imports through JNCH. β Additionally, penalties were imposed under Sections 114A and 114AA of the Customs Act, 1962.
The crux of the issue was whether the imported forklift parts were subject to the Legal Metrology (Packaged Commodities) Rules, 2011, which mandate the declaration of a “retail sale price (RSP)” for pre-packaged commodities. β The customs authorities argued that the goods were liable for additional duties based on the RSP, while the appellants contended that the goods were not pre-packaged commodities intended for retail sale.
Source: CESTAT Mumbai
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