ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 10.09.2025
CESTAT Chennai Sets Aside Misclassification Allegationsβ β β β β
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 victory for M/s. Gravity Ventures Pvt. β Ltd., the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Chennai, has set aside allegations of misclassification and misdeclaration of imported goods. The case revolved around the classification of non-woven interlining materials imported by the company, which were detained by the Customs Department, leading to a prolonged legal battle. β
Background of the Case
Gravity Ventures had filed Bill of Entry No. β 7384974 dated 02.04.2020 for the import of various non-woven interlining materials. β The company classified the goods under specific Customs Tariff Headings (CTH) based on the Country of Origin Certificate and invoices provided by the foreign supplier. β The Customs Department, however, disputed the classification and proposed alternative CTHs, leading to demands for differential duty, penalties, and fines. β
The department alleged that the company had misdeclared the goods to evade customs duty. β This resulted in the detention of the goods and subsequent provisional release only after the company filed writ petitions before the Hon’ble High Court of Madras. β The High Court directed the Customs Department to provisionally release the goods upon execution of a bond and bank guarantee.
Source: CESTAT Chennai
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