The Supreme Court of India has stayed recovery of ₹14.91 crore customs demand against HP India in a dispute over classification of Latex printers. The Court granted interim relief and issued notice, putting the recovery on hold till the next hearing.
The Supreme Court of India has granted interim relief to HP India Sales Pvt. Ltd. by putting a temporary stay on the recovery of a customs duty demand of ₹14.91 crore. The dispute revolves around how certain imported “HP Latex printers” should be classified under customs law.
The case was heard on April 16, 2026, by a Bench comprising Justice Aravind Kumar and Justice Prasanna B. Varale. While considering HP India’s request for interim relief, the Court passed a clear direction:
“There shall be a stay of recovery pursuant to the impugned judgment and final order dated 04.11.2025 till the next date of hearing.”
The dispute dates back to imports made by HP India between October 2016 and March 2021. During this period, the company imported printers worth more than ₹149 crore. Later, customs authorities changed the classification of these machines under a different tariff category. Because of this reclassification, the authorities raised a demand of ₹14.91 crore. This amount also included interest, an equal penalty, and a redemption fine under the Customs Act.
HP India argued that these printers are capable of connecting to automatic data processing (ADP) systems, such as computers. Based on this feature, the company claimed that the machines should be classified under a more beneficial tariff category applicable to inkjet printers. According to HP India, this connectivity makes them function like regular printers used with computers.
ALSO READ: Supreme Court Favors Patanjali in Customs Duty Dispute After 23-Year Legal Battle
However, the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) did not agree with this argument. The tribunal observed that the imported machines operate as independent or self-contained printing systems. It held that they do not rely on external data processing systems in the way required for the classification claimed by HP India. On this basis, the tribunal upheld the revised classification and the resulting duty demand.
Challenging the tribunal’s decision, HP India approached the Supreme Court. The Court has now issued notice in the appeal and granted interim protection by staying the recovery of the disputed amount. The matter will be heard further on the next date, where the Court will examine the classification issue in detail.
Click Here to Read More On Amritpal Singh
