CUSTOMS
'Extra Duty Deposit' Different From Customs Duty, Limitation For Seeking Refund U/S 27 Of Customs Act Is Inapplicable: Delhi High Court
The Delhi High Court has held that an Extra Duty Deposit (EDD) does not constitute a payment in the nature of customs duty under the scope of Section 27 of the Customs Act, 1962 and thus, the period of limitation for seeking a refund of customs duty under the provision would not apply qua EDD.Section 27 deals with a person/entity's claim for a refund of Customs duty in certain circumstances.A division bench of Justices Prathiba M. Singh and Dharmesh Sharma observed, “A perusal of Section 27...
'Customs Officers' Are Not 'Police Officers', Must Satisfy Higher Threshold Of 'Reasons To Believe' Before Arrest : Supreme Court
Dealing with a challenge to penal provisions of the Customs Act, the Supreme Court today observed that 'customs officers' are not 'police officers' and that they must satisfy a higher threshold of "reasons to believe" before arresting an accused.A bench of CJI Sanjiv Khanna and Justices MM Sundresh, Bela M Trivedi made the observation while delivering verdict in a batch of 279 petitions challenging the penal provisions in the Customs Act, CGST/SGST Act, etc. as non-compatible with the CrPC and...
Customs Department's Baggage Rules Have 'Limited Application' On Foreign Tourists: Delhi HC Orders Release Of Russian National's Gold Chain
The Delhi High Court has held that the Baggage Rules 2016 which are framed under the Customs Act 1962 to ensure that every passenger entering India passes through a Customs check has limited application on foreign tourists coming to India.While holding so, a division bench of Justices Prathiba M. Singh and Dharmesh Sharma ordered the release of a Russian national's gold chain, valued at about Rs. 7 lakhs, which was confiscated by the Customs Department when he arrived in India.It observed, “It...
Customs Authorities Can't Deny Benefit Of Customs Duty Exemption Under Notifications Governing Advance Licensing Scheme: CESTAT
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the Customs authorities cannot deny the benefit of Customs duty exemption under the notifications governing the Advance Licensing Scheme. The Bench of Dr. Rachna Gupta (Judicial Member) and Hemambika R. Priya (Technical Member) was addressing the issue of whether the goods imported by the assessee under AAs are permitted for duty free import under Advance Authorization Scheme. In ...
Delhi HC Grants Relief To Foreigner Whose Rolex Watch Was Seized By Customs, Says Waiver Of Show Cause & Hearing In 'Standard Form' Not Lawful
The Delhi High Court has reiterated that authorities making a traveller waive show cause notice before confiscation of goods, etc. under Section 124 of the Customs Act 1962, on a mere proforma, is not lawful.A division bench of Justices Prathiba M. Singh and Dharmesh Sharma thus granted relief to a permanent resident of Hong Kong, whose Rolex wristwatch valued at ₹30,29,400/- was confiscated by the Customs Department at the airport.It observed, “This is another case where the Department is...
Customs Department Must Intimate Party About Disposal Of Confiscated Property Both Via Email And On Mobile: Delhi High Court
The Delhi High Court has held that the Customs Department must ensure that the intimation of disposal of detained or confiscated property is given to the concerned party both via email as also the mobile number.A division bench of Justices Prathiba M. Singh and Dharmesh Sharma reasoned this will ensure that a party who succeeded in Court or Tribunal against the detention of the property is not deprived of their properties.The observation was made while dealing with a case where despite the order...
Delhi High Court Orders Customs To Release Traveller's Gold Worth ₹20 Lakh, Iphone, Playstation & More Over Failure To Issue SCN
The Delhi High Court recently ordered the Customs authorities to release a traveller's gold worth over ₹14 lakh and other branded articles like iPhone, PlayStation, etc. over the authority's failure to issue him a show cause notice.Section 124 of the Customs Act, 1962 contemplates issuance of a show cause notice before confiscation of goods.The Petitioner had landed at Delhi International airport with his family. He was intercepted carrying a gold chain, another three layered gold chain with...
No Unfettered Right To Cross-Examine Person Making Statements U/S 138(B) Customs Act: Delhi High Court
The Delhi High Court has made it clear that a person facing charges under the Customs Act, 1962 does not have an unfettered right under Section 138B, to cross-examine the informant or person making incriminatory statements.Section 138(B) of the Customs Act of 1962 deals with the admissibility of statements made during customs proceedings.A division bench of Justices Prathiba M. Singh and Dharmesh Sharma relied on Kanungo & Co. v. Collector of Customs, Calcutta and Others (1983) where a...
Imposition Of Conditions By Customs For Provisional Release Of Seized Goods 'Discretionary': Delhi HC Tunes Down 130% Bank Guarantee
The Delhi High Court has held that the imposition and severity of conditions imposed by the Customs Department for permitting provisional release of seized goods is “discretionary” in nature.In doing so, a division bench of Justices Prathiba M. Singh and Dharmesh Sharma scaled down the alleged onerous condition imposed on an importer, for executing a Bank Guarantee of 130% of the deferential duty.It observed, “The calculated amount for the bank guarantee would be substantial and may almost...
Baggage Rules Apply Only To Luggage Of International Travellers, Not To 'Reasonable Amount' Of Jewellery Worn In-Person: Madras HC
The Madras High Court has made it clear that Baggage Rule, 2016 framed under the Customs Act, 1962 apply only to the baggage carried by an international traveller.Justice Krishnan Ramasamy observed that the Rules cannot be extended to articles like jewellery, “carried on the person” of a traveller.The bench observed, “The Customs Act, 1962, enables the Central Government to make Rules to the extent of the articles carried in the baggage of a passenger and not for the articles, which were carried...