The Challenge
Our client, a large-scale importer of electronic components, had multiple consignments detained by the Customs authorities over a valuation dispute. The authorities alleged that the client was undervaluing its imports by not including certain software and royalty payments in the assessable value. This led to a provisional duty demand of ₹150 Crore and brought their production-linked supply chain to a grinding halt.
Our Strategic Solution
Our international trade experts immediately took action on two fronts. First, we secured the provisional release of the detained goods by furnishing the required bank guarantees, getting the client's supply chain moving again. Simultaneously, we prepared a detailed legal and factual submission arguing that the royalty and software payments were not a condition of the sale of the goods and thus not includible in the customs value, citing relevant case law and WTO valuation agreements. Our representation before the Commissioner of Customs (Appeals) was successful, leading to the withdrawal of the demand.
Key Outcomes
Delivering measurable value and decisive advantages.
₹150 Cr
Potential duty liability and associated penalties completely avoided.
Supply Chain Restored
Critical shipments were cleared from the port within days, preventing production shutdowns.
Favorable Order
Secured a definitive ruling from the appellate authority, preventing similar disputes in the future.