Separate Show-Cause Notice Not Needed Before Remanding Customs Case For Fresh Adjudication: Delhi High Court

The Delhi High Court has held that a separate show-cause notice under Section 129DD(5) of the Customs Act, 1962 is required when the Revisional Authority proposes to enhance the penalty or fine in lieu of confiscation, or to confiscate goods of greater value, but is not required merely when the matter is remanded for fresh adjudication.The Division Bench of Justices Avneesh Jhingan and Shail Jain made the observation while dismissing a writ petition challenging an order passed by the Revisional...

Madras High Court Sets Aside Customs Broker Suspensions, Says 'Immediate Action' Must Be Timely

The Madras High Court has set aside the suspension of licenses of 11 Customs Brokers, holding that the power to order “immediate suspension” cannot be exercised after an unexplained or substantial delay.Justice Hemant Chandangoudar held that while “immediate” does not mean that the suspension must be ordered instantaneously, the Customs authorities must act with reasonable promptness once the material necessary for taking action is available.The Court was hearing a batch of writ petitions filed...

Purchase Order Date Cannot Determine Import Date For Project Import Duty Benefit: Madras High Court

The Madras High Court has ruled that a purchase order placed with a foreign supplier before registration of a project contract does not, by itself, determine whether imported goods qualify for the Project Import benefit. The relevant date is when the goods are imported into India, subject to the other requirements under the Project Import Regulations, 1986.“The mere fact that a purchase order was placed before registration of the project contract cannot, by itself, determine the date of...

Already Revoked Customs Broker Licence Cannot Be Revoked Again: Delhi High Court

The Delhi High Court has held that a Customs Broker licence which has already been revoked cannot be revoked again in separate proceedings, observing that such an action is beyond the statutory provisions and results in multiplicity of litigation.The Division Bench of Justices Avneesh Jhingan and Shail Jain was hearing the appeal of a proprietorship concern which was granted a Customs Broker license in November 2016.The Customs authorities had, by an order dated July 1, 2020, revoked the licence...

Delhi High Court Upholds Customs Broker Licence Revocation Over Forged Graduation Degree

The Delhi High Court has upheld the revocation of a Customs Broker licence after finding that the graduation degree submitted by the broker was forged.The Division Bench of Justices Avneesh Jhingan and Shail Jain dismissed an appeal filed by R.K. Logistics challenging a CESTAT order which had upheld the revocation of its license, forfeiture of security and imposition of a ₹50,000 penalty.Appellant had applied for a Customs Broker licence in 2014 under the Customs Brokers Licensing Regulations,...

Indian-Registered Vehicle Returning From Overseas Trip Not A Fresh Import: Bombay High Court

An Indian-registered vehicle does not become a fresh foreign import merely because it is brought back to India in a shipping container after an overseas road trip, the Bombay High Court has ruled.A Division Bench of Justice M.S. Karnik and Justice Sandesh D. Patil held that a Mahindra Thar belonging to Russian national Denis Vanin had legally left India as a private conveyance for travel. Its subsequent placement in a maritime container for safe transit back to India did not transform it into...

Customs Act Does Not Prescribe Uniform Security For Provisional Release; Amount Must Be Reasonable: Bombay High Court

The Bombay High Court has held that Section 110A of the Customs Act does not prescribe a uniform security for provisional release of seized goods and that the quantum must be determined reasonably based on the facts of each case.“Section 110A of the Customs Act does not prescribe a uniform security for any case and the quantum depends on the facts and circumstances of each case including the nature of the offence, goods/cargo, value of the seized conveyance, revenue exposure,...

Delhi High Court Refuses To Interfere With 2003 Customs Notice To Mangali Impex, Cites SC's Canon India Ruling

The Delhi High Court has declined to interfere with a 2003 show cause notice issued by the Customs Department to Mangali Impex Ltd., holding that the issue of whether the officer who issued the notice was the “proper officer” has already been settled by the Supreme Court in favour of the department.The Division Bench of Justices Avneesh Jhingan and Shail Jain was hearing a petition challenging the show cause notice issued by the Assistant Commissioner, Special Intelligence & Investigation...

Can Presumption That Seized Goods Are Smuggled Apply To 'Mastermind' Not In Physical Possession? Delhi HC To Examine

The Delhi High Court is set to examine whether the statutory presumption under Section 123 of the Customs Act can apply to a person alleged to be the “mastermind” or financier who is not in physical possession of the seized goods.The Division Bench of Justices Avneesh Jhingan and Shail Jain has framed the question while hearing appeals filed by the Principal Commissioner of Customs (Preventive) against CESTAT orders.Section 123 of the Customs Act provides for a statutory shift in the burden of...

CESTAT Allahabad Sets Aside Value Enhancement, Finds Import Data Missing From Acceptance Letters

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Allahabad has recently refused to treat an importer's written acceptance of enhanced customs values as conclusive after finding that the letters did not contain the contemporaneous import data cited as the basis for the enhancement.“Given the language as noted in some of the letters as written by the appellant and placed above, there is a wide gap which has not been bridged by the Revenue, in the matter. The contents of this...

Customs Can't Levy Interest For Period Before Liability Was Determined In Confiscation Proceedings: Delhi High Court

The Delhi High Court has held that Customs authorities cannot calculate interest for a period during which the liability sought to be subjected to interest had itself not been determined.The Division Bench of Justices Anil Kshetarpal and Shail Jain made the observation while partly allowing a petition filed by Vishal Oil and Lubricants Co., challenging the interest reflected in the Customs EDI System in respect of a Bill of Entry filed in 2015.The Court directed the Customs authorities to...

Madras High Court Sets Aside Bank Guarantee Condition For Provisional Release Of ASC Impex Goods

The Madras High Court on 18 September set aside a bank guarantee condition imposed for provisional release of imported Polyester Woven Fabric with PVC Coating detained from ASC Impex over a classification dispute. Justice Hemant Chandangoudar directed Customs to release the goods on payment of applicable duty and execution of a personal bond for the differential duty. The Bench held: “The purpose of provisional release is to ensure that the goods are not unnecessarily detained during the...