Mumbai Customs approaches Supreme Court over Reliance Cisco IP Phone Import Duty Disputes
The apex court bench comprising Justices Manoj Mishra and Ujjal Bhuyan took up the matter on Friday and adjourned the hearing to 19 September 2025
The Mumbai Customs department has moved the Supreme Court of India challenging a tribunal ruling that favored Reliance group companies in a dispute over the classification of imported Cisco UC/IP desk phones. The apex court bench comprising Justices Manoj Mishra and Ujjal Bhuyan took up the matter on Friday and adjourned the hearing to 19 September 2025.
The matter arises from imports made by Reliance Sibur Elastomers Pvt. Ltd, Reliance Corporate IT Park Ltd, and Reliance Digital Platform & Project Services Ltd between October 2018 and May 2020. Mumbai Customs had reclassified the imported Cisco UC/IP desk phones as “video conferencing equipment” under the Customs Tariff Act, 1975, thereby imposing a higher import duty. Reliance contested this reclassification, arguing that the devices lacked video cameras and supported only voice calls. According to the companies, the products were ordinary push-button telephone sets, not video conferencing systems.
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On 7 April 2025, the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) ruled in Reliance’s favour. The tribunal held that the department had failed to establish adequate technical grounds for reclassification. It noted that the Cisco devices were basic VoIP desk phones without video functionality and therefore fell under Heading 8517 of the Customs Tariff Act, which covers “telephone sets” and distinguishes them from network equipment used for video transmission.
The tribunal also rejected the department’s reliance on the earlier Ingram Micro ruling, observing that the precedent was misapplied since that decision dealt with exemption eligibility and not product classification. Consequently, the tribunal cancelled the higher duty demands and penalties imposed on Reliance.
Mumbai Customs has now challenged the tribunal order before the Supreme Court, contending that VoIP desk phones can fall within the broader scope of video conferencing apparatus, which attract a higher duty rate. The department is expected to argue that functionality should be determined by the device’s capability of handling data networks rather than the presence or absence of video cameras.
This case highlights the recurring complexity of classification disputes under India’s indirect tax regime. Disagreements have arisen over how to tax a wide range of goods, from food products like parathas and popcorn to technical equipment like monitors, fertilizers, and telecom devices. Such disputes often travel from the advance ruling authorities through tribunals and high courts before reaching the Supreme Court, adding to judicial burdens.
With GST reforms now consolidating duty structures into fewer slabs, including a uniform 18% GST rate for most telecom and VoIP devices, industry players expect fewer such disputes in the future. For now, however, the Supreme Court’s decision on Reliance’s Cisco IP phone imports will determine the immediate outcome of this long-running classification battle.
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