The Delhi High Court has held that the benefit of monetary limits guidelines is not applicable in classification disputes.
The bench of Justice Prathiba M. Singh and Justice Rajneesh Kumar Gupta remanded the matter to Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Principal Bench, New Delhi for a fresh adjudication on the classification issue itself and not to dispose of the matter on merely the monetary limit.
The petitioner/assessee has challenged the order passed by the Customs, Excise and Service Tax Appellate Tribunal, Principal Bench at New Delhi.
The customs department has contended that though the monetary limit is below Rs.50,00,000/-, the classification of the product would be a recurring and a legal issue and hence in terms of exception in Clause 2(c) of the ‘Instruction’ dated 2nd November 2011, the issue deserves to be considered.
the Petitioner relies upon the order passed by CESTAT, Chennai in which the same product was involved i.e., PVC Resin Grade SP 660 (Suspension Grade) and the CESTAT, Chennai had refused to entertain the matter and had disposed it on the ground of monetary value.
The court held that this is an old matter, CESTAT, Principal Bench, New Delhi shall dispose of the matter within three months.
Case Details
Case Title: M/S Gourishankar Polymer Industries Versus Commissioner Of Customs
Case No.: CUSAA 48/2025 & CM APPL. 11174/2025
Date: 20/02/2025
Counsel For Petitioner: Prashant Srivastava
Counsel For Respondent: Aakarsh Srivastava
