CUSTOMS
India-ASEAN Trade Agreement's Dispute Resolution Mechanism Can't Bar Customs Action: Delhi High Court
The Delhi High Court has held that the dispute resolution mechanism under the India-ASEAN trade agreement cannot bar Customs authorities from initiating proceedings under the Customs Act 1962, observing that the relevant treaty provision has not been incorporated into Indian domestic law.The Division Bench of Justices Anil Khetarpal and Shail Jain made the observation while dismissing a petition filed by M.M. Ceramics & Ferro Alloys challenging Customs proceedings relating to its claim of...
Lack Of Written Customs SCN Doesn't Warrant Release Of Detained Goods Where Oral Proceedings Were Held: Delhi HC
The Delhi High Court has held that the absence of a separate written show cause notice does not, by itself, justify the release of goods detained by Customs. This is particularly so where the Department asserts that oral proceedings were undertaken at the time of interception and remains willing to afford the passenger a personal hearingThe Division Bench of Justices Anil Khetarpal and Shail Jain made the observation while dismissing a petition seeking release of two gold bars weighing 166...
Mere Natural Justice Violation Claim Cannot Bypass Customs Appeal Remedy: Delhi High Court
The Delhi High Court has recently held that a mere assertion of violation of principles of natural justice cannot, by itself, justify bypassing the statutory appellate remedy under the Customs Act, 1962.The Division Bench of Justices Anil Khetarpal and Shail Jain made the observation while declining to entertain a writ petition challenging the absolute confiscation of a 117-gram gold bar by Customs authorities.Petitioner contended that no valid Show Cause Notice was issued before confiscation...
'Remained Inactive For Several Years': Delhi High Court Refuses To Entertain Writ Against Customs Gold Seizure
The Delhi High Court has refused to entertain a writ petition challenging the confiscation of a 116-gram gold bar seized by Customs in December 2020, noting that the petitioner remained “inactive for several years” and approached the Court only in 2025.The Division Bench of Justices Anil Khetarpal and Shail Jain observed that Petitioner was aware of the seizure but did not take any steps in respect of it for several years. The Court also noted that the confiscation order passed by Customs in...
Delhi High Court Finds No Natural Justice Violation In Customs Case After Four Missed Hearings
The Delhi High Court has recently dismissed a plea challenging a Customs order on the ground that Petitioners were denied a personal hearing, holding that they had been given repeated and adequate opportunities, which they failed to avail.The Division Bench of Justices Anil Khetarpal and Shail Jain observed that adjournments were granted as an indulgence rather than as a right, and that Petitioners were afforded four opportunities of personal hearing between September and December 2024.The case...
Supreme Court Sets Aside ₹425.28 Crore Customs Penalty Over Fake Citations, AI Hallucinations
The Supreme Court has set aside a customs penalty of ₹425.28 crore against a diamond trader after finding that the adjudicating authority had relied on non-existent judgments and fake citations.It also found that legal propositions had been wrongly attributed to existing judgments, which the Court said appeared to be a “hallucination of AI”.A Division Bench of Justices Dipankar Datta and Sheel Nagu set aside the Gujarat High Court's January 20, 2026, order that had dismissed Vijay Ghanshyam...
Bombay High Court Directs Release Of Imported Areca Nuts Without Guarantee, Says FSSAI Clearance Suffices
The Bombay High Court on 31 August directed the Customs Department to release two consignments of imported roasted areca nuts belonging to Shivshakti Enterprises without insisting on a Rs. 40 lakh bank guarantee. A Division Bench of Justices M.S. Karnik and Sandesh D. Patil applied the principle laid down in the High Court's earlier decision in NBG International Private Limited v. Union of India & Ors. and held that the issue in the present case was squarely covered by that ruling. The...
Customs Must Verify Certificates Of Origin Before Denying Preferential Tariff Benefit: CESTAT Ahmedabad
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Ahmedabad on 31 August held that the Customs Department cannot deny preferential tariff benefit or invoke the extended limitation period against an importer merely on the suspicion that Certificates of Origin are fraudulent, without completing the prescribed verification process and establishing the importer's involvement in the alleged fraud. A Bench comprising Judicial Member Somesh Arora and Technical Member A.K. Jyotishi...
Customs Cannot Reclassify Fabrics Without Laboratory Test To Determine Composition: CESTAT Kolkata
On 25 August, the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Kolkata held that Customs authorities cannot change the classification of imported fabrics merely on the basis of their description without conducting a laboratory test to determine their actual composition. A Bench comprising Judicial Member R. Muralidhar and Technical Member K. Anpazhakan set aside a Rs. 39.12 lakh differential customs duty demand against Elvance Overseas LLP, holding that the Department could not...
Madras High Court Quashes ₹4.56 Crore Customs Duty Demand Against Shipping Forwarder
The Madras High Court on 19 August set aside a Rs. 4.56 crore differential customs duty demand, along with interest and penalties, imposed on the proprietor of The Sea Shipping Forwarders. A Single-Judge Bench comprising Justice Hemant Chandangoudar held that the Customs Department failed to record a specific finding, supported by cogent evidence, that the petitioner had prior knowledge of the concealed goods or knowingly facilitated their concealment and attempted duty evasion. He held: ...
Punjab And Haryana High Court Orders Release Of Roasted Areca Nuts Detained Since November 2024
The Punjab and Haryana High Court on 17 August directed the release of imported roasted areca nut consignments that had remained detained in Customs bonded warehouses since November 2024. A Division Bench comprising Acting Chief Justice Ashwani Kumar Mishra and Justice Rohit Kapoor found that the Central Revenue Control Laboratory (CRCL), New Delhi had classified the goods as “dried” rather than “roasted” based only on their physical appearance and colour, without applying the scientific...
Natural Rubber Latex Toy Balloons Classifiable As 'Toys', Not As 'Rubber Articles': CESTAT New Delhi
On 24 August, the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi held that toy balloons made of natural rubber latex are classifiable under Customs Tariff Heading (CTH) 9503 as “toys” and not under Chapter 40 as “rubber products.” Officiating President Dr. Rachna Gupta and Technical Member Hemambika R. Priya upheld the Revenue's classification of the goods imported by Vee Vee Enterprises, JMD Impex and V.K. Import Export Co. stating that specific functional...