Madras High Court: Customs Bound by DGFT Classification Under EPCG Scheme, Must Grant Duty Concessions

The Madras High Court held that once the Directorate General of Foreign Trade (DGFT) classifies imported goods as ‘capital goods’ under the EPCG scheme, the Customs Department cannot deny concessional duty benefits.

The Court allowed M/s. Adyar Gate Hotel Ltd.'s appeal concerning imported light fittings, criticising Customs for causing unnecessary litigation despite clear legal precedent and CBEC instructions.

The court directed Customs to refund the duty with statutory interest, clarifying that no additional compensatory interest is payable.