Madras High Court Holds Unreasonable Delay Bars Duty Drawback Recovery, Quashes ₹38.77 Lakh Demand

The Madras High Court on 7 July held that customs authorities cannot recover duty drawback benefits after an unreasonable and unexplained delay, even when the relevant rules do not prescribe a specific limitation period for such recovery. Justice Hemant Chandangoudar quashed the recovery proceedings initiated against A.Kiyasdeen, an exporter for recovery of Rs. 38.77 lakh in duty drawback and a penalty of Rs. 1 lakh, holding that the proceedings initiated several years after the drawback was...

Authorised Courier Can Appeal Licence Revocation After Chief Commissioner Representation: Delhi High Court

The Delhi High Court has held that an Authorised Courier whose licence has been revoked under the Courier Imports and Exports (Clearance) Regulations, 2010 can maintain a statutory appeal under Section 129A of the Customs Act, 1962, even after availing the remedy of representation before the Chief Commissioner under the Regulations.A Division Bench of Justices Anil Kshetrapal and Shail Jain set aside a CESTAT order that had dismissed the courier's appeal as not maintainable on the ground that...

Madras HC Holds Civil Dispute Over Wharfage Refund Cannot Be Tried As Criminal Offence, Quashes CBI Case

The Madras High Court on 8 June quashed a CBI charge sheet, holding that authorities cannot convert a civil dispute relating to refund of wharfage charges into criminal proceedings alleging cheating, forgery, or corruption. A Single-Judge Bench of Justice G.K. Ilanthiraiyan allowed the petition and quashed the criminal proceedings against all accused. He held: “...it was found that there was no excess wharfage charges amount and as such requested the importer to return the same, on the said...

Registration Of Customs Appeal Cannot Be Refused For Non-Payment Of Pre-Deposit: Allahabad High Court

The Allahabad High Court has held that an appellate authority cannot refuse to register an appeal merely because the appellant has not made the mandatory pre-deposit under Section 129E of the Customs Act, holding that the statutory requirement applies only at the stage of "entertaining" the appeal and not at the stage of its filing or registration. A Division Bench of Justices Saumitra Dayal Singh and Swarupama Chaturvedi disposed of a writ petition filed by Runway Impex, directing the...

Corrigendum Cannot Expand Show Cause Notice After Hearing Concludes: Gujarat High Court

On 22 June, the Gujarat High Court held that Customs authorities cannot introduce fresh allegations or evidence through a corrigendum after adjudication proceedings have concluded and the matter has been reserved for final orders. A Division Bench of Justices A.S. Supehia and Vaibhavi D. Nanavati allowed a writ petition filed by Vidres India Ceramics Pvt. Ltd. and directed the authorities to pass final orders within six weeks.They emphasised that the department could not improve its...

Customs Cannot Apply Later Interim Order Retrospectively To Demand BIS Certification: Gujarat High Court

The Gujarat High Court on 15 June held that customs authorities cannot withhold imported consignments by retrospectively applying a subsequent interim order and insisting on Bureau of Indian Standards (BIS) certification for goods imported during a period when such certification was not mandatory. A Division Bench of Justices A.S. Supehia and Vaibhavi D. Nanavati allowed a petition filed by Hilotex International Pvt. Ltd., holding that customs authorities acted arbitrarily in placing imported...

Customs Cannot Deny Clearance For Goods Imported Before DGFT Notification: Delhi High Court

The Delhi High Court on 4 June held that import restrictions introduced through a DGFT notification cannot apply to goods imported before the notification acquired legal force upon publication in the e-Official Gazette. A Division Bench of Justices Nitin Wasudeo Sambre and Ajay Digpaul allowed a writ petition filed by Bright Metal Refiners and directed customs authorities to process and release consignments of platinum alloy jewellery imported from Thailand. The judges held: “The...

Delhi HC Quashes ₹3.20 Crore Customs Communication Against Vivo India After Customs Agrees To Issue SCN

The Delhi High Court on May 20 quashed a customs communication issued to Vivo Mobile India Pvt. Ltd. indicating differential duty liability of ₹3.20 crore, after the Customs Department stated that it would issue a show cause notice within four weeks.A Division Bench of Justices Nitin Wasudeo Sambre and Ajay Digpaul noted, “In consideration of the statement made by Mr. Naushad for issuance of a show cause notice within four weeks, we quash and set aside the impugned communication dated...

Container Freight Station Cannot Operate Without Customs Supervision: Calcutta High Court

On 15 May, the Calcutta High Court upheld cost recovery charges imposed on a Container Freight Station at Haldia and rejected a challenge to demand notices issued by Customs authorities, holding that such facilities cannot function outside the framework of statutory supervision and regulatory control. The Bench of Justice Rai Chattopadhyay dismissed the plea filed by Apeejay Infra Logistics Pvt. Ltd. and observed that a Container Freight Station cannot function without supervision, examination,...

Mere Concealment Of Gold Not Enough To Prove Customs Duty Evasion: Delhi High Court

The Delhi High Court has upheld the acquittal of a man accused of smuggling gold into India, holding that mere concealment of gold was insufficient to establish fraudulent evasion of customs duty when the passenger was intercepted before he could proceed through customs clearance.Justice Neena Bansal Krishna dismissed an appeal filed by the Union of India challenging the acquittal of a Mumbai-based passenger who was found carrying 30 gold biscuits weighing 3496.400 grams concealed in a waist...

Delhi High Court Sets Aside 'Rubber-Stamped' PRC Orders Rejecting Exporter's Duty Relief Claim

The Delhi High Court has set aside three Policy Relaxation Committee orders rejecting O.C. Sweaters LLP's request to count two export shipments under the Advance Authorisation Scheme. The court held that the authorities mechanically rejected the case without meaningfully considering the exporter's contention that a technical glitch prevented it from availing the scheme benefit. “the orders passed by the concerned authorities are merely mechanical in nature and amount to rubber-stamping,...

Delhi High Court Directs Release of Seized Gold, Notes Redemption Relief Already Granted

The Delhi High Court has directed Customs authorities to release seized gold after noting that an individual passenger had already been granted redemption of the goods in appeal, which was affirmed in revision. A bench of Justice Nitin Wasudeo Sambre and Justice Ajay Digpaul observed that the petitioner, Harish Kumar, had secured substantial relief through the appellate process, which stood affirmed by the Revisional Authority. Emphasising this, the Court directed immediate release of the gold...