CESTAT Mumbai Upholds Nil Duty Classification for Cisco Interface Modules

ALO Law Office- IDT Tax I Arbitration I Litigation

Date: 20.02.2026

CESTAT Mumbai Upholds Nil Duty Classification for Cisco Interface Modules

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Mumbai, recently delivered a significant judgment in the case of Commissioner of Customs, Mumbai (Air Cargo Import) vs. M/s. ​ Reliance Corporate IT Park Ltd.. ​ This case revolved around the classification of the imported product, “Interface Module (Part No. ​ N7K-M348XP-25L) for Cisco Nexus 7000 series Ethernet Switch,” under the Customs Tariff Act, 1962. ​ The decision, issued on February 13, 2026, has set a precedent for similar disputes in the future.

Background of the Case

The dispute arose when M/s. Reliance Corporate IT Park Ltd. imported the Interface Module for Cisco Nexus 7000 series Ethernet Switch and classified it under Customs Tariff Item (CTI) 8517 7010, which attracts a Basic Customs Duty (BCD) rate of ‘Nil’. ​ However, the Customs Department reclassified the goods under CTI 8517 6290, which carries a different duty rate. ​ The department did not issue a speaking order as required under Section 17(5) of the Customs Act, 1962, leading the respondent to file an appeal before the Commissioner of Customs (Appeals). ​

The Commissioner (Appeals) upheld the classification under CTI 8517 7010 and remanded the matter back to the original authority for re-assessment. ​ Dissatisfied with this decision, the Revenue filed an appeal before the CESTAT. ​

Key Issue: Classification of Imported Goods ​

The central issue in this case was the correct classification of the imported goods. ​ The respondents argued that the Interface Module for Cisco Nexus 7000 series Ethernet Switch should be classified under CTI 8517 7010, while the Revenue contended that it should fall under CTI 8517 6290.

Tribunal’s Decision ​

The Tribunal referred to its earlier decision in the case of Commissioner of Customs, (Air Cargo Import), Mumbai vs. Reliance Jio Infocomm Ltd., where the classification of similar goods under CTH 8517 7010 was upheld. This decision was further reinforced by the Hon’ble Supreme Court, which dismissed the Revenue’s appeal against the Tribunal’s order. ​

Given the established precedent, the Tribunal concluded that the classification of the imported goods under CTI 8517 7010 was correct. ​ The appeal filed by the Revenue was dismissed, and the impugned order of the Commissioner (Appeals) was sustained. ​

Implications of the Judgment

This judgment is significant for several reasons:

1. Clarity on Classification: The decision provides clarity on the classification of Interface Modules for Cisco Nexus 7000 series Ethernet Switches under the Customs Tariff Act, ensuring consistency in future cases. ​
2. Precedent Value: The Tribunal’s reliance on its previous decision and the Supreme Court’s dismissal of the Revenue’s appeal solidifies the legal standing of the classification under CTI 8517 7010.
3. Importance of Speaking Orders: The case highlights the importance of issuing speaking orders under Section 17(5) of the Customs Act, 1962, during re-assessment. ​ Failure to do so can lead to disputes and appeals.
4. Impact on Importers: Importers of similar goods can now rely on this judgment to classify their products under CTI 8517 7010, potentially benefiting from the ‘Nil’ BCD rate. ​

Conclusion

The CESTAT’s decision in this case underscores the importance of adhering to established legal precedents and proper procedures in customs classification disputes. By upholding the classification under CTI 8517 7010, the Tribunal has provided much-needed clarity and consistency for importers and the Customs Department alike. ​ This judgment is a testament to the role of judicial bodies in resolving complex trade and tariff issues, ensuring fairness and transparency in the process.

Source: CESTAT Mumbai

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