ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 31.05.2025
CESTAT Ahmedabad Rejects Misclassification Allegation
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), West Zonal Bench, Ahmedabad, Colourtex Industries Pvt. Ltd. and other appellants have secured a favorable decision in a long-standing customs classification dispute. The case revolved around the import classification of βTWITCHELL 6808 DEDUSTERβ and its eligibility for duty exemption under Indian customs law.
The Dispute: Classification of Imported Deduster
Colourtex Industries, a manufacturer of color dyes, had been importing a product used in the dedusting of dyes during production. The product was declared under Heading 2710 1990, which covers preparations containing 70% or more of petroleum oils. Initially, the product was classified under Heading 3809 9140, but the classification was amended by the appellant in 2017 based on further testing and supplier documentation. The Directorate of Revenue Intelligence (DRI), however, initiated proceedings alleging misclassification. Based on a 2020 test report from the Central Revenues Control Laboratory (CRCL), the DRI claimed the product was a preparation based on organic surface-active agents, meriting classification under Heading 3402 9019. This led to the issuance of a show cause notice and the subsequent adjudication by the Commissioner of Customs, Ahmedabad, which the appellant challenged before the 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 Ahmedabad
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