CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL NEW DELHI PRINCIPAL BENCH – COURT NO. I CUSTOMS APPEAL NO. 55846 OF 2023 (Arising out of Order-in-Original No. 24-26/2023/VCG/Principal Commissioner/ICD- Import/TKD dated 31.08.2023 passed by the Principal Commissioner of Customs, (Imports), ICD TKD, New Delhi)

M/s Myntra Jabong India Pvt Ltd ..…Appellant Plot No. 82A, Sector-18,Gurugram, Haryana-122015 Versus Principal Commissioner of Customs ACC ..…Respondent (Imports)

Inland Container Depot, Tughlakabad, New Delhi APPEARANCE:

Shri Kishore Kunal, Ms. Ankita Prakash and Shri Anuj Kumar, Advocates for the Appellant Shri Shiv Shankar, Authorised Representative of the Department CORAM:

HON’BLE MR. JUSTICE DILIP GUPTA, PRESIDENT HON’BLE MS. HEMAMBIKA R. PRIYA, MEMBER (TECHNICAL)

DATE OF HEARING: 28.08.2025 DATE OF DECISION: 27.02.2026 FINAL ORDER NO. 50302/2026 JUSTICE DILIP GUPTA:

M/s Myntra Jabong India Pvt Ltd¹ has filed this appeal for setting aside the order dated 31.08.2023 passed by the Principal Commissioner of Customs, ICD (Import), Tughlakabad, New Delhi². The order holds that the provisions of section 28(4) of the Customs Act, 1962³ have been correctly invoked; confirms the classification of the Jackets proposed in the show cause notice; confirms the differential customs duty with interest but the amount deposited by the appellant was directed to be

1. the appellant

2. the Principal Commissioner

3. the Customs Act appropriated and no balance demand of duty and interest was to be recovered from the appellant; the goods have been held to be liable to confiscation under section 111(m) of the Customs Act but no redemption fine has been imposed as the goods were not physically available; and penalty has been imposed upon the appellant under section 114A of the Customs Act.

2. The appellant is engaged inter alia in the business of selling various consumers goods, electronic items and fashion apparels to end customers by listing the same on electronic commerce portal www.myntra.com. For this purpose, the appellant imports consumer fashion and lifestyle products, including clothing, footwear, accessories and beauty products. According to the appellant from July 2017 to November 2023, it paid customs duty for import of such items amounting to Rs. 800 crores.

3. The relevant period in the present appeal is from 09.08.2017 to 03.10.2019. The impugned order adjudicates three show cause notices dated 20.09.2021, 24.12.2021 and 29.03.20212. The duty that has been confirmed under section 28(4) of the Customs Act is for Rs. 3,47,37,530/- with interest under section 28AA of the Customs Act. The amount that was paid by the appellant towards differential duty prior to the issue of the show cause notice is Rs. 3,50,97,782/- with an amount of Rs. 66,59,210/- towards interest. It is for this reason that the Principal Commissioner, after appropriating this amount, held that no amount of duty with interest remained to be paid by the appellant.

4. The following goods, namely Men’s Polyster Knitted Jackets of various descriptions, are the subject matter of the present appeal:

“a. 100% Polyster knitted men’s Jackets were

classified under the CTI 6101 90 90 of the

Customs Tariff Act attracting BCG @20% ad valorem.

b. Men's Knitted Jackets (Shell 1-100% Polyester, Shell 2-60% T Polyester-40% PU) were classified under the CTI 6103 33 00 of the Custom Tariff Act attracting BCD @ 20% ad valorem.

c. The 60% PU 40% Polyester Knitted men's PU Jackets were T classified by the appellant under CTI 6101 90 90 attracting BCD T @20% ad valorem.

d. The appellant had classified the Men's Knitted Jacket (Shell 1-60% Polyester-40% PU Shell 2 100% Polyester under CTI 6103 33 00 attracting BCD @ 20% ad valorem.”

5. All the above Knitted Jackets were front open with Zippers and the nature of the material differed on account of composition of Polyester/PU in the Jackets.

6. The Customs (Preventive) Commissionerate, New Delhi, entertained a view that the classification adopted by the ap