CESTAT Rejects Customs Reclassification of Mobile Parts

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi, by its order dated 18 May 2026, allowed the appeal filed by Ismartu India Pvt. Ltd. and set aside the customs demand arising from reclassification of imported mobile phone parts as complete mobile phones in CKD/SKD condition. 

The Tribunal held that the Department failed to establish that the imported components possessed the "essential character" of complete mobile phones under Rule 2(a) of the General Rules for Interpretation (GIR) of the Customs Tariff. Consequently, the demand of differential customs duty, confiscation of goods and penalty were quashed.