Gourishankar Polymer Industries Vs Commissioner of Customs (Delhi High Court)
The Delhi High Court addressed an appeal filed by Gourishankar Polymer Industries against an order passed by the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Principal Bench at New Delhi. The appeal concerned a dispute over the classification of PVC Resin Grade SP 660 (Suspension Grade) for the purpose of customs duty. The Standing Counsel for the Respondent argued that despite the monetary value of the dispute being below ₹50,00,000/-, the matter involved a recurring legal issue concerning product classification, thus falling under an exception in the Central Board of Excise and Customs’ (CBEC) ‘Instruction’ dated 2nd November 2011. This instruction mandates contesting adverse judgments related to classification and refund issues of a legal or recurring nature, irrespective of the amount involved.
The Counsel for the Petitioner cited an order from CESTAT, Chennai, where an appeal involving the same product was dismissed based on monetary limits as per the litigation policy. However, the Delhi High Court took note of the fact that the classification of this specific PVC resin for the period prior to 2017 remained unsettled. Considering the recurring nature and the legal implications of product classification, especially with conflicting decisions from different CESTAT benches on the same product, the Delhi High Court deemed it appropriate to remand the matter back to CESTAT, Principal Bench, New Delhi. The High Court directed CESTAT to conduct a fresh adjudication specifically on the classification issue itself, rather than dismissing it solely based on the monetary limit. Recognizing the age of the case, the Delhi High Court instructed CESTAT to dispose of the matter within three months.
