Supreme Court Dismisses Customs Challenge Against ITC Ltd Over Quicklime Classification
The Supreme Court on Friday dismissed the Customs Department's challenge against ITC Ltd, upholding a ruling that treated imported “quicklime” as an industrial form of lime rather than a chemically pure compound.
The classification turned on whether the product, containing about 92% calcium oxide, could be considered a high-purity chemical.
A bench of Justices Manoj Misra and Manmohan found no grounds to interfere with the CESTAT Kolkata Bench order dated June 20, 2025, which had held in favour of ITC Ltd. on the issue of classification of imported goods.
The appellate tribunal had observed that “the chemical analysis clearly states that the purity is only 92% and accordingly, the product 'Quick Lime' is rightly classifiable under CTH 2522 1000,” thereby rejecting classification under the residuary heading.
The dispute arose from the classification of goods imported by ITC Ltd. (Paperboards & Speciality Papers Division), where the company had declared the product as “quicklime” under tariff heading 2522. The Customs Department however, sought to classify the same under tariff heading 2825, treating it as a chemically defined compound and thereby attracting a different duty structure.
Tariff heading 2522 specifically covers “quicklime, slaked lime and hydraulic lime,” whereas heading 2825 is a residuary entry for inorganic chemical compounds, including pure calcium oxide. At the heart of the dispute was whether the imported product, having calcium oxide content below 98%, could be treated as a pure chemical compound or as commercially known quicklime.
The CESTAT Kolkata bench held that the product must fall under the specific entry, upholding the classification of imported quicklime. With the Supreme Court declining interference, the CESTAT's ruling in favour of ITC stands affirmed.