Madras HC Ruled That DGFT's Classification Of Goods Under EPCG Is Binding On The Customs Authority And Cannot Be Questioned

BRIEF FACTS OF THE CASE

• The Appellant was engaged in the hotel business and imported various lighting and light fittings on 25.05.1999. The import was made under the Export Promotion Capital Goods (EPCG) Scheme, claiming concessional duty under Customs Notification No. 28/97 dated 01.04.1997. The Appellant had obtained a valid EPCG license issued by the Directorate General of Foreign Trade (DGFT), which classified the imported items as "capital goods."
• At the time of import, the Customs Authority denied the benefit of the concessional rate of duty, contending that the imported goods did not fall within the meaning of "capital goods" as per the Notification, even though the EPCG license specified otherwise. Consequently, the Appellant was compelled to pay the full rate of customs duty under protest.