High Court
Clandestine Gold Transport & High Purity Satisfy “Reasonable Belief” Under Customs Act: Calcutta High Court
The Calcutta High Court on 31 March restored the adjudicating authority's confiscation of 1,999.90 grams of gold, holding that clandestine transport and high scientific purity of bullion establish a “reasonable belief” of smuggling under the Customs Act. A Division Bench of Justices Rajarshi Bharadwaj and Uday Kumar allowed the Commissioner of Customs (Preventive), Kolkata's appeals, reinstated the confiscation and penalties, and set aside the Tribunal's order that had granted relief to the...
Delhi High Court Grants Interest on Delayed Customs Duty Refunds To Mobile Importers, Denies Relief To Lava
The Delhi High Court has held that mobile importers, including Intex Technologies (India) Ltd., are entitled to interest on refunds of excess customs duty paid by them.A Division Bench of Justices Prathiba M. Singh and Shail Jain allowed a batch of writ petitions filed by multiple importers, including Jaina Mobile India, Intex Technologies, and UT Electronics (Petitioners), all of whom had been granted refunds of excess Countervailing Duty (CVD) but were denied interest.However, no interest on...
Circular Issued In Delhi Does Not Confer Jurisdiction: Delhi High Court Dismisses Plea On Goods Seized By Customs In Kolkata
The Delhi High Court has recently dismissed a writ petition filed by a steel importer challenging the detention of its goods, holding that the mere issuance of a circular or decision by an authority located in Delhi does not, by itself, confer territorial jurisdiction on the Court.A division bench of Justices Nitin Wasudeo Sambre and Ajay Digpaul was dealing with a plea filed by a company engaged in the import of steel products, whose consignments had been detained at ports in Kolkata and...
Once Goods Found Of Indian Origin, Customs Seizure Arbitrary And Malafide: Allahabad High Court
The Allahabad High Court at Lucknow has expressed surprise at the seizure and detention of areca nuts by the customs authority on the ground that they were of foreign origin despite one lab test indicating Indian origin and a government laboratory test failing to determine their origin. The bench of Justice Shekhar B. Saraf and Justice Manjive Shukla was dealing with a batch of writ petitions involving seizure of the goods by customs authorities and held: “In such a situation, when the goods...
Amendment Allowing Customs Duty Exemption For Machinery Installed In Premises Applies Retrospectively: Gujarat High Court
The Gujarat High Court has held that an amendment to a customs exemption notification under the Export Promotion Capital Goods (EPCG) scheme, which allowed installation of imported machinery in the importer's “factory or premises," will apply retrospectively, and exemption cannot be denied merely because the machinery was installed outside the factory. Allowing an importer's appeal, a Division Bench of Justice A.S. Supehia and Justice Pranav Trivedi observed that the benefit earlier denied due...
Delhi High Court Declines To Quash Customs SCN, Says Limitation Plea To Be Examined By Adjudicating Authority
The Delhi High Court has recently declined to exercise its writ jurisdiction to quash a show cause notice issued under the Customs Act, 1962, holding that the petitioner's plea regarding limitation must be decided by the adjudicating authority.A division bench of Justices Nitin Wasudeo Sambre and Ajay Digpaul observed,“Once the petitioner has submitted his explanation on the issue of limitation based on the judgments referred above, it can be expected of the respondents to deal with the...
Delhi High Court Upholds CESTAT Order Restoring Customs Broker License, Faults Vague Show Cause Notice
The Delhi High Court has upheld a CESTAT order restoring an entity's customs broker licence, holding that action based on a vague show cause notice cannot be sustained in law.A division bench of Justices Nitin Wasudeo Sambre and Ajay Digpaul dismissed an appeal filed by the Commissioner of Customs challenging the CESTAT order which had set aside the revocation of the respondent's Customs Broker licence.The dispute arose from an order dated February 14, 2024 by which the customs authorities had...
Gujarat High Court Upholds DRI Seizure Of Imported Industrial Oil, Says Product Most Akin To Restricted Diesel Fuel
The Gujarat High Court has upheld the seizure of imported consignments declared as “industrial oil," holding that the product was most akin to Automotive Diesel Fuel (ADF) / High Flash High Speed Diesel (HFHSD), which are restricted commodities importable only through State Trading Enterprises under the import policy.The Division Bench comprising Justice A. S. Supehia and Justice Pranav Trivedi dismissed multiple writ petitions filed by importers, including Deep International (petitioner),...
Bill Of Entry Amendment After Search Permissible Under Customs Act: Rajasthan High Court Upholds Relief To Ceramic Tableware
The Rajasthan High Court has recently observed that amendments in the Bill of Entry can be made even after a search is conducted, and such amendments cannot be refused merely because the error was detected by the department and not disclosed suo motu by the importer. A division bench of Acting Chief Justice Sanjeev Prakash Sharma and Justice Sangeeta Sharma said that the purpose of Section 149 of the Customs Act, 1962 is to ensure proper assessment and that the power to allow amendment must be...
Import of Cosmetics Without CDSCO Licence Constitutes 'Prohibited Goods': Bombay High Court
On 9 March, the Bombay High Court held that cosmetic products imported without the mandatory licence under the Drugs and Cosmetics Act qualify as “prohibited goods” under the Customs Act and refused to permit their re-export, upholding the seizure action taken by customs authorities. A Division Bench of Justice G.S. Kulkarni and Justice Aarti Sathe dismissed a writ petition filed by Glamstone Cosmetics Pvt. Ltd., which had challenged the seizure of three consignments of cosmetics imported from...
Gujarat High Court Sets Aside ₹30,000 Customs Penalty On Zaveri & Co. For Wrong Regulatory Action
The Gujarat High Court on 24 February set aside a penalty imposed on Zaveri and Co. Pvt. Ltd. for alleged violations of warehousing regulations, holding that the customs authorities had initiated proceedings under the wrong regulatory framework and failed to provide the audit report that formed the basis of the action. A Division Bench comprising Justice A.S. Supehia and Justice Pranav Trivedi passed the ruling while allowing a writ petition filed by the company challenging the penalty order...
Mere Presence Of Finance Ministry, CBIC In Delhi Doesn't Confer It Jurisdiction To Entertain Petition: Delhi High Court
The Delhi High Court has held that the mere presence of the Ministry of Finance and the Central Board of Indirect Taxes and Customs (CBIC) in Delhi does not, by itself, confer territorial jurisdiction on the High Court, when the cause of action arises from summons and demands issued by authorities located outside Delhi.The Division bench of Justices Nitin Wasudeo Sambre and Ajay Digpaul dismissed a writ petition filed by an exporter challenging summons issued by the Directorate of Revenue...