2026 Supreme(Online)(CESTAT) 2028

CUSTOMS EXCISE & SERVICE TAX APPELLATE TRIBUNAL
P. Dinesha, Judicial Member, Vasa Seshagiri Rao, Technical Member
Urban Essentials India Pvt. Ltd. – Appellant
Versus
Commissioner of Customs – Respondent
Customs Appeal No. 41355 of 2025

An adjudicating authority must pass a 'speaking order' that addresses all substantive legal contentions, including statutory status (MSME) and technical compliance requirements, rather than deciding matters mechanically without verifying arguments raised by the parties.

Headnote:(A) Customs Act, 1962 - Section 111(d) - BIS Act, 2016 - Sections 16 and 17 - Medical Textiles (Quality Control) Order, 2024 - Import of Sanitary Napkins - Requirement of BIS Certification/Standard Mark - Appellant claims status as MSME and entitlement to extended timeline - Adjudicating authority passed order without sufficiently addressing contentions and technical guidelines - Order termed as non-speaking - Matter remanded for de novo adjudication. (Paras 13, 14, 15)

Facts of the case:
The appellant imported goods described as sanitary napkins and panty liners. Revenue contended that the goods failed to conform to the Medical Textiles (Quality Control) Order, 2024, as they lacked the mandatory BIS Standard Mark and certificate. The Adjudicating Authority ordered confiscation and penalties. The Appellant argued it was a Small Enterprise under the MSMED Act, 2006, and that the timeline for compliance should have been extended to April 1, 2025.

Findings of Court:
The Appellate Tribunal observed that the impugned order failed to provide a detailed analysis of the BIS guidelines and the MSME status of the appellant. It held that the original order was 'non-speaking' as it did not adequately address the appellant's submissions regarding its status and the applicability of the QCO timeline.

Issues: Whether the impugned goods were prohibited in the absence of a BIS licence; whether the appellant, as an MSME, was entitled to an extended deadline for compliance; and whether the adjudication order was a speaking order.

Ratio Decidendi: An adjudicating authority is mandated to pass a speaking order that engages with the contentions raised by the party, especially regarding technical guidelines and statutory entitlements (such as MSME status), rather than deciding in a mechanical manner.

Result: Appeal allowed by way of remand.