The Challenge
Our client, a key supplier of high-tech electronic components, was served a notice by the DGGI alleging misclassification of their main product. This reclassification carried a differential tax demand of ₹120 Crores, including interest and penalties. The demand threatened to wipe out their profits for the year and disrupt contracts with major electronics brands.
Our Strategic Solution
Stark's tax litigation team immediately went to work. We assembled a defense based on the technical specifications and end-use of the component, proving it was not a generic part but a custom-designed item for a specific function. Our argument was supported by expert technical opinions and a detailed analysis of the GST tariff schedule. We represented the client before the adjudicating authority, presenting a robust case that dismantled the tax department's argument piece by piece, ultimately leading to the notice being quashed.
Key Outcomes
Delivering measurable value and decisive advantages.
₹120 Cr
Entire tax demand, including interest and penalties, was nullified.
Business Continuity
Prevented major financial disruption and protected key client relationships.
Clear Precedent
Set a clear classification precedent for similar components in the electronics sector.