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Tag: #Classification

  • CESTAT Chennai Upholds Correct Tariff Classification of PVC Resin

    CESTAT Chennai Upholds Correct Tariff Classification of PVC Resin

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 30.07.2025

    CESTAT Chennai Upholds Correct Tariff Classification of PVC Resin

    The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Chennai, recently delivered a significant judgment in the case of M/s Arun Polymers vs Commissioner of Customs, Chennai-II Commissionerate. This decision sheds light on the complexities of customs classification and the importance of adhering to specific tariff headings under the Customs Tariff Act, 1975. ​

    Background of the Case

    The dispute revolved around the classification of imported goods described as β€˜PVC Resin SP 660 Suspension Grade.’ The appellant, M/s Arun Polymers, classified the goods under Customs Tariff Heading (CTH) 3904 2110, which pertains to “Poly (vinyl chloride) resins.” ​ This classification would entitle them to the benefit of Notification No. ​ 46/2011-Cus dated 1.6.2011. ​ However, the revenue authorities reclassified the goods under CTH 3904 1090, a residuary entry, and denied the benefit of the notification, demanding duty of Rs. ​ 22,38,097/- along with interest.

    This Article has been written by Shri Ravi Shekhar Jha, Advocate Delhi High Court based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.

    Source: CESTAT Chennai

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  • CESTAT Chennai Upholds Classification of Tomato Dry Flavour Under CTH 3302

    CESTAT Chennai Upholds Classification of Tomato Dry Flavour Under CTH 3302

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 30.06.2025

    CESTAT Chennai Upholds Classification of Tomato Dry Flavour Under CTH 3302

    The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai, has allowed the appeal of M/s Symrise Pvt. Ltd., ruling that the imported product β€œTomato Dry Flavour” is correctly classifiable under Customs Tariff Heading (CTH) 3302 1010 as an odoriferous substance, and not under CTH 2106 9060 as previously contended by customs authorities.

    The Tribunal’s Final Order No. 40499/2023 dated 28.06.2023, sets aside the earlier denial of concessional basic customs duty (BCD) under Notification No. 21/2002, Sl. No. 119.

    Background of the Case

    • Symrise Pvt. Ltd. imported Tomato Dry Flavour and classified it under CTH 3302 1010, claiming a 10% BCD exemption.
    • The Revenue reclassified the product under CTH 2106 9060 (food preparations not elsewhere specified), triggering a demand for differential duty under Section 28 of the Customs Act, 1962.
    • The Commissioner (Appeals) upheld the reclassification, prompting the present appeal before CESTAT.

    This Article has been written by Shri Ravi Shekhar Jha, Advocate Delhi High Court based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.

    Source: CESTAT Chennai

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  • CESTAT Kolkata Upholds ITC Limited’s Stand Under CTH 2522

    CESTAT Kolkata Upholds ITC Limited’s Stand Under CTH 2522

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 23.06.2025

    CESTAT Kolkata Upholds ITC Limited’s Stand Under CTH 2522

    Case Background

    M/s ITC Limited, Paperboards & Speciality Papers Division, had imported Quicklime (PCC Lime 0/20MM) for use as a Pulp Conversion Chemical. The company classified the imports under CTH 2522 10 00 (Quicklime), which attracts a concessional rate of duty as a mineral product.

    However, the Customs assessing officer reclassified the goods under CTH 2825 90 90 (Inorganic chemicals – Others) on the basis of laboratory tests, triggering higher customs duties. Orders confirming this classification were passed under Section 17(4) and 17(5) of the Customs Act, 1962 and subsequently upheld by the Commissioner (Appeals).

    ITC challenged the reclassification and the matter reached CESTAT Kolkata, involving multiple appeals from 2019 to 2025.

    This Article has been written by Shri Ravi Shekhar Jha, Advocate Delhi High Court based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.

    Source: CESTAT Kolkata

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  • CESTAT Delhi Upholds Importer’s Tariff Classification

    CESTAT Delhi Upholds Importer’s Tariff Classification

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 05.06.2025

    CESTAT Delhi Upholds Importer’s Tariff Classification

    The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi, allowed the appeal of M/s Motherson Bergstrom HVAC Solutions Pvt. Ltd., setting aside the customs demand raised on account of alleged misclassification of imported automotive air conditioning components. The Tribunal’s detailed decision reaffirms the primacy of Note 2(a) of Section XVI in tariff classification and reasserts settled jurisprudence that specific tariff headings under Chapters 84 and 85 prevail over general residual classifications.

    Background of the Case:

    The appellant, M/s Motherson Bergstrom, imported various parts and assemblies such as blowers, filters, water valve assemblies, thermostats, modules, and control panels, classifying them under individual tariff headings of Chapters 84, 85, and 90. The Customs department reclassified the goods under CTI 8415 90 00 (parts of air conditioners), demanded differential customs duty under Section 28(1) of the Customs Act, and initiated reassessment proceedings.

    This Article has been written by Shri Ravi Shekhar Jha, Advocate Delhi High Court based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.

    Source: CESTAT Delhi

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  • CESTAT Kolkata- Lemoneez is rightly classifiable under CTH 20093100

    CESTAT Kolkata- Lemoneez is rightly classifiable under CTH 20093100

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 17.05.2025

    CESTAT Kolkata- Lemoneez is rightly classifiable under CTH 20093100

    The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Eastern Zonal Bench, Kolkata, delivered a landmark decision on 8th May 2025, resolving a long-standing customs classification dispute involving Dabur India Limited. The case revolved around the classification of β€œLemoneez,” a lemon juice concentrate imported from Nepal.

    Background of the Dispute

    Dabur India Ltd., represented along with their Custom House Agent (CHA),had classified Lemoneez under Tariff Item 2202 99 20, attracting IGST @12%, while importing from Nepal. However, a revenue alert triggered by DGARM alleged underpayment of duty and contended that the product was incorrectly classified. The Department claimed the product should fall under Heading 2106, which attracts IGST @18%. A Show Cause Notice followed, culminating in the Order-in-Original dated 29.11.2024 by the Commissioner of Customs (Preventive), Patna, confirming a differential tax demand of β‚Ή1.05 crores, interest, and penalties.

    This Article has been written by Shri Ravi Shekhar Jha, Advocate Delhi High Court based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.

    Source: CESTAT Kolkata

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  • CESTAT Chennai- Classification under CTH 95062900 upheld for swim seats, arm bands, fins, and paddles

    CESTAT Chennai- Classification under CTH 95062900 upheld for swim seats, arm bands, fins, and paddles

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 14.05.2025

    CESTAT Chennai- Classification under CTH 95062900 upheld for swim seats, arm bands, fins, and paddles

    The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Chennai Bench, ruled in favour of M/s. Page Industries Ltd., setting aside the reclassification orders passed by lower authorities and confirming that various imported swimming aids and accessories were appropriately classifiable under Customs Tariff Heading (CTH) 95062900 as water sports equipment.

    Case Background

    • Importer: M/s. Page Industries Ltd., Bengaluru
    • Disputed Goods: Sea Squad Swim Seats, Arm Bands, Bio-Fuse Fitness Fins, Swimming Goggles, Headgear, and Fabric Hats (under the Speedo brand)
    • Original Claim: Classification under CTH 95062900 with applicable duty exemption under Notification No. 12/2012 (Sl. No. 503)
    • Department’s Reclassification: CTH 39269099 (articles of plastic) or CTH 95069990 (other sports equipment)
    • Key Contention: Whether the imported goods qualify as water sports equipment eligible for concessional customs duty

    This Article has been written by Shri Ravi Shekhar Jha, Advocate Delhi High Court based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.

    Source: CESTAT Chennai

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  • CESTAT Kolkata Upholds Bed Sheet Classification Under CTH 6304

    CESTAT Kolkata Upholds Bed Sheet Classification Under CTH 6304

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 13.05.2025

    CESTAT Kolkata Upholds Bed Sheet Classification Under CTH 6304

    The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Kolkata Bench, dismissed the Department’s appeal and affirmed the classification adopted by Silpha Finvest Pvt. Ltd. for imported bed sheets made of 100% polyester. The Tribunal held that the goods were rightly classified under CTH 6304 and not under CTH 5407, rejecting the Revenue’s charge of misdeclaration and its demand for penalty and redemption fine.

    Case Snapshot

    • Importer: Silpha Finvest Pvt. Ltd., Kolkata
    • Goods: Bed sheets made of 100% polyester
    • Declared Classification: CTH 6304 (Bedspreads & other furnishing articles)
    • Department’s Reclassification: CTH 5407 (Woven fabrics of synthetic filament yarn)
    • Show Cause Notice: Alleged misdeclaration and suppression
    • Adjudication Result: Classification changed; goods confiscated; duty, fine, and penalty imposed

    This Article has been written by Shri Ravi Shekhar Jha, Advocate Delhi High Court based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.

    Source: CESTAT Kolkata

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  • CESTAT Bangalore- Department’s attempt to reclassify under 8543 deemed unwarranted and unsupported

    CESTAT Bangalore- Department’s attempt to reclassify under 8543 deemed unwarranted and unsupported

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 12.05.2025

    CESTAT Bangalore- Department’s attempt to reclassify under 8543 deemed unwarranted and unsupported

    The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Bangalore Bench, dismissed the Department’s appeal in the case of Next Education India Pvt. Ltd., affirming the classification of student interactive response systems under Customs Tariff Heading (CTH) 8471 60 29.

    Case Background:

    • Importer: Next Education India Pvt. Ltd., Kochi
    • Imported Goods: Student Interactive Response Systems (keypads and IR receivers)
    • Original Classification (By Importer): CTH 8471 60 29 – input/output units of ADP machines
    • Revised Classification (By Department): CTH 8543 70 99 – electrical apparatus with individual function
    • Disputed Duty: Arising from denial of exemption applicable to ADP-related products

    This Article has been written by Shri Ravi Shekhar Jha, Advocate Delhi High Court based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.

    Source: CESTAT Bangalore

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  • CESTAT Bangalore- Quick Lime Imports by JSW Steel Classifiable Under Chapter 25

    CESTAT Bangalore- Quick Lime Imports by JSW Steel Classifiable Under Chapter 25

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 01.05.2025

    CESTAT Bangalore- Quick Lime Imports by JSW Steel Classifiable Under Chapter 25

    The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Bangalore, allowed the appeal of M/s JSW Steel Limited, Salem, quashing the differential customs duty demand of over Rs. 75 lakh and ruling that “Quick Lime” is correctly classifiable under Customs Tariff Heading (CTH) 2522 10 00.

    Case Background:

    • JSW Steel imported “Quick Lime Powder” under 8 Bills of Entry between September and November 2015.
    • The goods were initially assessed provisionally under CTH 2522 1000, with standard duty payments.
    • Based on test results indicating 92.2% purity of calcium oxide, Revenue reclassified the product under CTH 2825 9090 (for pure calcium oxide) and raised a demand of Rs. 75,99,475 plus interest.

    This Article has been written by Shri Ravi Shekhar Jha, Advocate Delhi High Court based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.

    Source: CESTAT Bangalore

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  • CESTAT Chennai uphold exemption benefits and correct classification under CTH 8415 9000

    CESTAT Chennai uphold exemption benefits and correct classification under CTH 8415 9000

    ALO Law Office- IDT Tax I Arbitration I Litigation

    Date: 24.04.2025

    CESTAT Chennai uphold exemption benefits and correct classification under CTH 8415 9000

    The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai Bench – Court No. III, has ruled in favor of M/s One Care Medical Centre, Coimbatore, quashing the reclassification of imported Variable Refrigerant Flow (VRF) Air Conditioning Units and the denial of customs exemption benefit.

    Background:

    • The appellant imported various models of Toshiba indoor and outdoor air conditioning units from M/s Toshiba Carrier (Thailand) Co. Ltd. under Bills of Entry dated 07.11.2014.
    • They classified the goods under CTH 8415 9000 and claimed benefit under Customs Notification No. 46/2011 Sl. No. 1103(1).
    • The Revenue disagreed, asserting the goods were complete air conditioning units of more than 2-ton capacity, reclassifying them under CTH 8415 8110, attracting full duty.

    This Article has been written by Shri Ravi Shekhar Jha, Advocate Delhi High Court based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.

    Source: CESTAT Chennai

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