S.48 Customs Act | Exporter Cannot Stop Customs Action On Return Shipment By Disowning It: Delhi High Court

The Delhi High Court has recently held that an exporter cannot block the entry or processing of a return shipment merely by disowning the consignment, and that once the importer/exporter refuses to clear the goods, the statutory consequences under Section 48 of the Customs Act, 1962 must follow.

For context, Section 48 provides the procedure to be followed where the goods are not cleared, warehoused, or transshipped within thirty days from the date of unloading.

In the case at hand, the Petitioner, an exporter, had sought directions to restrain Customs authorities from processing an allegedly unauthorised “return shipment” sent back by a foreign buyer.

The petitioner contended that the goods were returned without its consent and that it had expressly disowned the consignment. On this basis, it argued that Customs authorities should be directed not to allow the import of the goods into India and to prevent any third party from dealing with the shipment.

Rejecting the plea, the division bench of Justices Nitin Wasudeo Sambre and Ajay Digpaul observed that disowning a consignment cannot halt the statutory process under the Customs Act.

It noted that once goods arrive in India and are not cleared by the person concerned, Section 48 of the Customs Act applies, empowering Customs to deal with the goods in accordance with law.

“Once the petitioner has disowned the consignment in question for which it was served with the notice dated 16th February 2026 viz., the cargo arrival, the necessary consequences under the Customs Act, 1962, shall follow. 27. Appropriate reliance may be placed upon the provisions of Section 48 of the Customs Act, 1962,” it held.

As such, terming the petition to be 'misconceived', the Court dismissed it.

For Petitioner: Advocates Mohit Chaudhary, Kunal Sachdeva Katyayani, Vajpaye Nishant Walia and Lalshay Yadav, Advs.

For Respondent: Dr. B Ramaswamy, CGSC with Aakarsh Srivastava, Senior Standing Counsel with Advocates Anand Pandey and Farah Shah for R-2 to R-4