Paytm gets relief in ₹21-crore Soundbox customs duty battle

A customs tax tribunal has delivered a win to One97 Communications Ltd, the parent of Paytm, quashing a customs demand totalling ₹21 crore, after finding authorities had relied on Wikipedia to classify one of the company's flagship devices.

- Krishna Yadav

A bench of Customs, Excise and Service Tax Appellate Tribunal on 5 August overturned two orders against Paytm over its Soundbox payment device, saying the classification was "based merely on presumption and assumption" and "not on authentic technical literature or any expert opinion, report, evidence or statement." The row arose after the customs department alleged the Soundbox was a 4G LTE/MIMO device attracting 20% duty, instead of a 2G device eligible for concessional 10% rate under Customs Act, 1962. The reclassification would increase costs for Paytm's network of over 11.7 million merchants as of last December—street vendors and kiranas—who use it for payment confirmations.

Emailed queries to One97 Communications went unanswered till press time.