The Delhi High Court has granted relief to Soni E Vehicle Private Limited, a Greater Noida-based manufacturer and importer of e-rickshaws, by reducing the statutory pre-deposit required for its appeal before the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) from Rs. 10.74 lakh to Rs. 5.5 lakh. The court has directed CESTAT to decide the matter on merits by November 15, 2025.
The bench of Justice Prathiba M. Singh, sitting with Justice Shail Jain, observed that prolonged confiscation of e-rickshaws benefits no one, especially at a time when India is promoting eco-friendly transportation. The court allowed a reduced pre-deposit considering the company’s financial constraints and directed that both the company’s and its director’s appeals be heard on merits.
The dispute arose from a March 12, 2014 office order issued by the Commissioner of Customs, Inland Container Depot (ICD), Tughlakabad, which clarified that imports consisting of a motor along with certain major assemblies — such as transmission, axle, chassis, and controller — would be treated as complete e-rickshaws in CKD/SKD condition, attracting classification under heading 8703 of the Customs Tariff Act and the Motor Vehicles Act, 1988.
Between 2015 and 2019, Soni E Vehicle imported components for e-rickshaw assembly and domestic sale. In 2019, two consignments were seized, and a show cause notice was issued, alleging that the imports were, in effect, complete vehicles. The adjudicating authority reclassified the goods, ordered their confiscation, and imposed heavy fines and penalties — including absolute confiscation of consignments worth over ₹3.83 crore, demand of ₹3.58 crore in duties, and personal penalties on the company’s managing director and associated customs broker.
Soni E Vehicle challenged the order before CESTAT in February 2021, but the appeal was dismissed for non-payment of the pre-deposit. The company then approached the High Court, arguing financial hardship and contesting the 2014 office order as the source of classification confusion.
CESTAT has been instructed to examine whether the consignments constituted complete e-rickshaws or mere components, the validity of the 2014 office order, and other classification issues. The matter is listed before CESTAT on September 4, 2025, with a final decision expected by mid-November.
Case Details
Case Title: Soni E Vehicle Private Limited Versus Commissioner Of Customs
Case No.: W.P.(C) 5178/2023
Date: 31st July, 2025
Counsel For Petitioner: Tanmay Mehta
Counsel For Respondent: Aditya Singla
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