SC upholds rejection of customs duty demand on naphtha imports by RIL
This story was originally published at 18:24 IST on 9 April 2025
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Informist, Wednesday, Apr. 9, 2025
NEW DELHI – The Supreme Court on Wednesday upheld a Customs, Excise & Service Tax Appellate Tribunal order that had rejected customs duty demand and penalty against Reliance Industries Ltd. on the import of Naphtha (A-180 grade) from Saudi Aramco Products Trading Co. Reliance Industries had classified the import of Naphtha (A-180 grade) as "other light oils and preparations" and "Naphtha" under bills of entries.
Reliance Industries had claimed exemption from payment of applicable duties of customs in terms of a 2015 customs notification. However, the Directorate of Revenue Intelligence issued a show cause notice to Reliance Industries in 2020, alleging that goods imported by the company did not answer the description of "Naphtha" and were also not classifiable as "other light oils" but were instead classifiable as "natural gasoline liquid".
The appellate tribunal held that the customs department did not discharge the onus to prove the claim of the classification of goods as "natural gasoline liquid". The tribunal said the classification of goods as "Naphtha" as declared by Reliance Industries was correct.
Challenging the appellate tribunal's order, the Commissioner of Customs, Ahmedabad had moved the apex court. However, the bench of Justices J.B. Pardiwala and R. Mahadevan dismissed the appeal.
On Wednesday, the shares of RIL ended 0.3% higher at INR 1,185.35 on the National Stock Exchange. End
Reported by Surya Tripathi
Edited by Saji George Titus
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