Mahindra & Mahindra Limited Vs Union of India (Bombay High Court)
Summary: The Bombay High Court considered a writ petition under Article 226 of the Constitution of India challenging the Order in Original dated 20.12.2025 passed by the Principal Commissioner of Customs (Import), Air Cargo Complex, Sahar, Mumbai. Mahindra & Mahindra Limited had imported Battery Management Systems (BMS) and Cell Supervisory Circuits (CSC) for manufacturing lithium-ion battery packs used in electric vehicles. The petitioner had classified BMS under CTH 9032 8990 and CSC under CTH 8537 1000 / 8537 1090 and claimed the concessional Basic Customs Duty rate of 2.5% under Serial No. 512 of Notification No. 50/2017-Customs dated 30.06.2017. Serial No. 512 covers parts, components and accessories, subject to specified exclusions including Printed Circuit Board Assemblies (PCBAs). The adjudicating authority treated the imported BMS and CSC as PCBAs and denied the concessional rate, confirming differential customs duty of INR 14,07,47,215/- with applicable interest and penalty.
The petitioner relied upon a detailed and independent Technical Expert Opinion dated 17.07.2025 issued by Veermata Jijabai Technological Institute (VJTI), Mumbai, following physical inspection and component-level analysis. VJTI opined that the products could not themselves be understood as PCBAs used in the manufacture of battery packs. The petitioner submitted that the Department had not obtained any counter-expert opinion, independent technical testing or other scientific/technical material to rebut VJTI’s findings. The Revenue, on the other hand, defended the classification and exemption denial and raised a preliminary objection that the petitioner had an alternate statutory appeal remedy under Section 129A of the Customs Act, 1962 before CESTAT.
