NEW DELHI, Aug. 13 -- A customs tax tribunal has delivered a win to One97 Communications Ltd, the parent of Paytm, quashing a customs demand totalling Rs.21 crore, after finding authorities had relied on Wikipedia to classify one of the company's flagship devices.

A bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 5 August overturned two penalty orders against Paytm over its Soundbox payment device, calling the classification "based merely on presumption and assumption" and "not on any authentic technical literature or any expert opinion, evidence, statement, or report."

The dispute arose when Customs alleged that the Soundbox was a 4G LTE/MIMO device, which would attract the standard 20% duty, rather than a 2...