CESTAT holds Section 28 Cannot Reclassify Goods Without a Duty Demand

Toyota Kirloskar Motors faced a ₹53.77 crore customs demand arising from alleged misclassification of imported sensors. 

CESTAT accepted the declared classification for nine categories, set aside reclassification of another 36 sensors where no duty demand existed, rejected the extended-period demand for four items for want of evidence of wilful suppression, and set aside penalties and IGST interest for the relevant pre-16 August 2024 period.