Bharat Sanchar Nigam Limited Vs Commissioner of Customs (Delhi High Court)
The Delhi High Court heard an appeal filed by Bharat Sanchar Nigam Limited (BSNL) under Section 130 of the Customs Act, challenging an order of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) dated 28 July 2025. BSNL, a telecommunications provider, had issued tenders and advance purchase orders for equipment, including Baseband Unit Modules (BBU) and Radio Access Technology (RAT) units. These were originally classified under Customs Tariff Head (CTH) 85176290. Following a clarification from the Customs Department, the classification was revised to CTH 85177090, after which BSNL directed its field units to pay differential duty. In the present matter, the differential duty was paid in 2021.
Subsequently, three show cause notices dated 8 July, 9 September, and 16 September 2021 were issued under Section 28(4) of the Customs Act alleging wilful misstatement. BSNL replied to the notices, but in the Order-in-Original (OIO) dated 20 February 2023, the adjudicating authority held that short payment of duty had occurred in respect of one inland container depot and that BSNL had not paid penalty under Section 28(5). The authority confirmed duty of ₹12.63 crore, appropriated the amount already paid, imposed penalty equal to the duty under Section 114A, and recorded that confiscation could not be ordered as the goods were not physically available. Though the OIO acknowledged that most of the differential duty had been voluntarily paid, penalty was imposed.
