CUSTOMS
Pendency Of Customs Adjudication Process Cannot Justify Provisional Attachment Beyond 12 Months: Madras High Court
The Madras High Court has directed the defreezing of a bullion account belonging to a Chennai-based jewellery exporter.It held that a provisional attachment of a bank account under Section 110(5) of the Customs Act cannot continue beyond the maximum statutory period of 12 months.Justice Hemant Chandangoudar passed the order on a plea filed by Dhruv Jewellers, challenging a communication dated August 4, 2022, issued by the Directorate of Revenue Intelligence (DRI) to the bank directing it to...
Bona Fide Buyer Of Duty-Free Import Licence Not Liable For Exporter's Fraud: Calcutta High Court
The Calcutta High Court has recently held that a bona fide purchaser of a duty-free import licence cannot be made liable for the exporter's fraud when the purchaser had no knowledge of it.It observed that a licence obtained through fraud or misrepresentation is not automatically void or non-existent. Where the licence was genuinely issued by the competent authority and remained uncancelled, it continues to be valid until it is avoided in accordance with law."A bona fide purchaser of a duty-free...
HC Can't Bypass Customs Statutory Appeal Merely Due To Financial Hardship In Making Pre-Deposit: Delhi High Court
The Delhi High Court has held that a taxpayer cannot bypass the statutory appellate mechanism under the Customs Act merely by citing financial hardship in complying with the mandatory pre-deposit requirement.The Division Bench of Justices Anil Kshetarpal and Shail Jain made the observation while dismissing a writ petition challenging ₹3 crore penalty imposed on a man in connection with an alleged attempt to export red sanders wood concealed beneath carpets."However, once the legislature has...
Time-Barred Customs Duty Can Be Adjusted From Voluntary Deposit If Importer Admitted Liability: Delhi High Court
The Delhi High Court has held that although the limitation period under Section 28 of the Customs Act, 1962, bars the Revenue from initiating a fresh demand after the prescribed period, it does not prevent the authorities from appropriating an amount already voluntarily deposited by an importer during investigation towards the admitted customs duty liability.The Division Bench of Justices Anil Kshetarpal and Shail Jain was dealing with a case arising from a Directorate of Revenue Intelligence...
Calcutta High Court To Examine If Customs Can Treat 'Obscene Adult Sex Toys' As Prohibited Goods
The Calcutta High Court is set to examine whether goods described as “obscene adult sex toys” can be treated as “prohibited goods” under the Customs Act without identifying a specific statutory or notification-based prohibition. Justice Smita Das De is hearing a petition filed by Pracha Aalloy Private Limited against a July 22, 2026, Customs order. The key question is whether describing the goods as “obscene adult sex toys” and invoking Section 292 of the Indian Penal Code, 1860 can, by...
Mere Suspicion Over Freight Component Cannot Justify Rejection Of CIF Value: CESTAT Mumbai
On 10 September, the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai, held that Customs cannot reject the Cost, Insurance and Freight (CIF) value declared by an importer merely on suspicion that freight and insurance were not included, unless there is evidence of any additional payment by the importer. A Bench comprising Judicial Member Ajay Sharma and Technical Member A.K. Jyotishi allowed appeals filed by I.G. International Pvt. Ltd. and its Director Tarun Arora concerning...
CESTAT Mumbai Directs Release Of Johnson & Johnson's SAD Refunds Adjusted Against Dropped Demand
On 11 September, the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai allowed appeals filed by Johnson & Johnson Pvt. Ltd. and set aside the order passed by the Commissioner of Customs (Appeals), Mumbai-II. A Bench comprising Judicial Member Dr. Suvendu Kumar Pati observed: “This being admission of the Respondent-Department they should have released the amount adjusted against such drawback demand suo moto in favour of the Appellant but this has not been done.” Johnson...
Conditions Of All Exemption Notifications Must Be Strictly Complied With For Simultaneous Benefit: CESTAT Delhi
The Delhi bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that an importer claiming exemptions under multiple customs notifications must comply with the conditions prescribed under each notification.The tribunal observed that “strict interpretation to all notifications has simultaneously to be given”, and that the conditions of all the notifications have to be strictly complied with to avail their simultaneous benefit.A bench comprising Officiating President Dr....
Customs Failed To Quantify Duty, Can't Blame Traveller For Delay In Redeeming Gold: Delhi High Court
The Delhi High Court has held that a passenger cannot be faulted for failing to redeem confiscated gold within the stipulated period when the Customs Department itself failed to quantify and communicate the applicable duty, despite receiving his request within time.The Division Bench of Justices Anil Kshetarpal and Vimal Kumar Yadav accordingly directed the Customs authorities to communicate the duty payable on 12 gold bars weighing 1,200 grams and release the gold upon payment of the duty,...
Written Acceptance Of Enhanced Customs Value Does Not Bar Statutory Appeal: CESTAT Allahabad
The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Allahabad, has reiterated that an importer's written acceptance of an enhanced assessable value does not, by itself, prevent the importer from challenging the reassessment in appeal.Relying on the Delhi High court's ruling in Niraj Silk Mills v. Commissioner of Customs (ICD), Patparganj, the tribunal held that accepting a reassessment and giving up a speaking order are not the same as giving up the statutory right to challenge...
No Customs Interest On Capital Goods Kept In Bonded Warehouse Until Clearance: Rajasthan High Court
The Rajasthan High Court has upheld the setting aside of a ₹2.88-crore customs interest demand on solar modules imported by Acme Aklera Power Technology Pvt. Ltd. It held that interest under Section 61(2) of the Customs Act cannot be charged on capital goods covered by Section 61(1)(a). A Division Bench comprising Justice Arun Monga and Justice Ashutosh Kumar held that such capital goods can remain in a warehouse until clearance if they are intended for use in a warehouse where manufacture or...
Declared Goods Used To Conceal Undeclared Imports Can Be Confiscated: CESTAT Allahabad
The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Allahabad, has ruled that declared goods can also be confiscated when they are used to conceal large quantities of undeclared goods.“It is not in dispute that the goods imported by the appellant was accompanied and used for concealment of large quantities of undeclared goods sought to be smuggled in to India by violating the provisions of Trade Markets and Intellectual Property Laws,” Technical Member Sanjiv Srivastava observed....