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 highlighted important principles for applying the common or trade parlance test in classification disputes under taxation laws. Previously, the CESTAT ruled that imported ‘aluminium shelves’ should be classified as parts of agricultural machinery under CTI 84369900.
