CESTAT Kolkata Clarifies Classification and Duty Exemption for Imported Aluminium Formwork Structures

Aadrikaa Legal Services (ALS) – IDT Tax I Arbitration I Litigation

Date: 18.07.2026

CESTAT Kolkata Clarifies Classification and Duty Exemption for Imported Aluminium Formwork Structures

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Kolkata, recently delivered a significant order regarding the classification and duty exemption of imported aluminium formwork structures used in construction. This article provides a detailed overview of the case, the arguments presented, and the implications of the tribunal’s decision.

Background of the Case

M/s. P.S. Srijan Heights Developers imported consignments of “Aluminium Formwork Structure with Accessories” for use in construction projects. The company classified these goods under Customs Tariff Item (CTI) 76109010 and claimed exemption benefits under Notification No. 152/2009-Customs (as amended). The importer also paid IGST at 18% under the relevant IGST notification.

However, the Customs Department challenged this classification, arguing that the goods should be classified under Tariff 84806000 (as moulds) and that a different exemption and IGST rate should apply. The department’s position was based on the fact that the formwork structures are assembled at construction sites, used to shape concrete, and then removed and reused, suggesting they function as moulds rather than permanent structures.

Key Issues and Arguments

Appellant’s Position

1. Correct Classification: The appellant maintained that the aluminium formwork structures are correctly classified under CTH 76109010, supported by:
   • Invoices and certificates of origin from the Korean Chamber of Commerce & Industry.
   • References to the Indian Trade Portal and previous tribunal decisions (e.g., Ranjita Agencies and Vima Industrial Plastics cases).
2. Specific vs. General Classification: The appellant argued that Tariff Heading 7610 (aluminium structures) is more specific than 8480 (moulds), and the goods are predominantly aluminium panels designed for structural use.
3. Precedent Cases: The appellant cited recent tribunal decisions, including:
   • Alcove Construction Pvt. Ltd. vs. Commissioner of Customs (Port): Held that similar goods are classifiable under CTH 76109010.
   • Vijay Nirman Co. Ltd. vs. Principal Commissioner of Customs, Vishakapatnam: Reaffirmed the above classification.

Department’s Position

• The department argued that the goods function as moulds since they are used to shape concrete and are removed after use, making them eligible for classification under 84806000.
• They maintained that the confirmed demand for differential duty, interest, and penalty was justified.

Tribunal’s Analysis and Decision

The tribunal carefully examined:

• The explanatory notes under the Harmonized System of Nomenclature (HSN), which clarify that equipment for scaffolding, shuttering, and propping (including aluminium structures) falls under heading 7610.
• The distinction between moulds (which create discrete items for later assembly) and formwork structures (which act as temporary supports for in-situ construction).

The tribunal found that:

• The aluminium formwork structures are not moulds in the sense intended by heading 8480. Instead, they are temporary structures used to support concrete until it sets, after which they are removed and reused.
• The goods are best classified under CTH 76109010, as supported by previous tribunal decisions and the explanatory notes.

Outcome and Implications

• The tribunal set aside the order of the lower authorities, allowing the appeal and confirming that the goods are classifiable under CTH 76109010.
• The appellant is entitled to the claimed exemption and the applicable IGST rate as originally declared.
• This decision provides clarity for importers of aluminium formwork structures, ensuring consistent classification and duty treatment in line with established legal precedent.

Conclusion

The CESTAT Kolkata’s ruling reinforces the principle that aluminium formwork structures used in construction are to be classified as structures under CTH 76109010, not as moulds. This distinction is crucial for determining the correct duty exemptions and IGST rates, and the decision sets a clear precedent for similar cases in the future.

Connected Matter

CESTAT Hyderabad- Aluminium Formwork Materials Classified as Aluminium Structures, Not Moulds

Source: CESTAT Kolkata

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