Re-Export Does Not Absolve Importers From Penalty For Misdeclaration Under Customs Act: Madras High Court

The Madras High Court has held that an importer cannot escape penalties for misdeclaration and use of false documents merely by opting to re-export the goods after detection. "The order of re-export on payment of redemption fine will not absolve the penal consequence envisaged under the Customs Act, 1962. If this proposition of the CESTAT is to be approved, then all illegal importers, if caught, will offer to pay a paltry sum as fine in lieu of redemption of the goods and re-export the...

CESTAT Delhi Orders Interest Payable On ₹113.69 Crore Deposited By Nikon India During Supreme Court Appeal

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Delhi, has ruled in favour of Nikon India in a customs dispute over import of digital cameras, holding that the Customs department must pay interest on Rs. 113.69 crore deposited under directions of the Supreme Court. A Bench of President Justice Dilip Gupta and Technical Member Hemambika R. Priya held that once the Supreme Court directed refund of the amount with interest, the department was bound to follow that direction...

Pre-2022 Iron Ore Exports Cannot Be Reassessed On DMT Basis; WMT Applies: Orissa High Court

The Orissa High Court has held that iron ore exports made before the 2022 change in law must be assessed on Wet Metric Tonne (WMT) basis prevailing at the time, and cannot later be reassessed on Dry Metric Tonne (DMT) basis. The court held, “It is trite that under all taxing statutes to consider levy of tax/duty it is to be determined when exactly did the taxable event occur? It is with reference to that point of time, that the chargeability or leviability of the tax or duty, as the case may...

Delhi High Court Dismisses Pleas Against Customs SCNs On AIFTA Benefits For Copper Imports

The Delhi High Court has dismissed as premature petitions challenging show cause notices denying duty benefits under the ASEAN-India Free Trade Agreement on copper imports from Vietnam for allegedly failing the 35% value addition requirement. A Division Bench of Justices V. Kameswar Rao and Vinod Kumar held that the petitions were not maintainable at this stage, noting that the challenge was to show cause notices which initiate adjudicatory proceedings and do not conclusively determine rights ...

Delhi High Court Refuses Writ Against Gold Chain Confiscation, Cites Alternate Remedy Under Customs Act

The Delhi High Court has recently refused to entertain a writ petition challenging the confiscation of a gold chain under the Customs Act, 1962, reiterating that writ jurisdiction under Article 226 cannot be invoked to bypass an available statutory remedy of appeal.A Division Bench of Justices Nitin Wasudeo Sambre and Ajay Digpaul dismissed the petition filed against an order confiscating a 100-gram gold chain from the Petitioner on his return to India from Bangkok.The petitioner was intercepted...

Customs Public Notices Cannot Be Issued In A Manner Diluting FTA Benefits Or Overriding Law: Bombay HC

The Bombay High Court recently observed that Commissioner of Customs cannot issue public notices in a manner that dilutes the benefits under free trade agreements or overrides statutory provisions and CBIC circulars, while setting aside an order denying preferential duty to Covestro India Pvt. Ltd. The dispute arises from a public notice issued in March 2024 by the Commissioner of Customs at Nhava Sheva, which prescribed additional documentation requirements in cases involving third-party...

Bombay HC Flags 'Judicial Chaos,' Urges Uniform Litigation Policy Over Contradictory Stands Taken by Tax Depts

The Bombay High Court has recently flagged a persistent issue of the tax and customs department taking inconsistent stands on the same legal question before different High Courts, warning that such conduct leads to “judicial chaos” and needs correction through a uniform litigation policy. A bench of Justice G. S. Kulkarni and Justice Aarti Sathe held that once a legal issue has reached finality against the department, it cannot be reopened elsewhere by taking a contrary stand. The court...

Correct Appeal Forum Depends On Officer's Actual Rank, Not What An Order Mentions: Gujarat High Court

The Gujarat High Court on 15 April 2026 held that the appellate forum under the Customs Act, 1962 must be determined by the actual rank and statutory authority exercised by the adjudicating officer, and not by any incorrect or clerical mention in the order. A Division Bench comprising Justices A.S. Supehia and Pranav Trivedi dismissed the Department's Tax Appeal and upheld the CESTAT's order, holding that the appeal was correctly filed before the Tribunal under Section 129A of the Customs Act,...

Delhi HC Refuses To Order Third Re-Test Of Shawls For Export, Says Decision Lies With Adjudicating Authority

The Delhi High Court has recently declined to direct a third re-test of goods under Customs proceedings, holding that such a request cannot be insisted upon at the mere instance of a party and that the decision lies within the discretion of the adjudicating authority, particularly where two test reports are already on record.A bench of Justices Nitin Wasudeo Sambre and Ajay Digpaul dismissed a writ petition filed by an exporter seeking the quashing of a show cause notice and a direction for...

Delhi High Court Grants Importers Interest On Customs Duty Refunds After Delay In Re-Assessment By Department

The Delhi High Court has recently held that importers are entitled to interest on refunds of excess customs duty in cases where prolonged delay in reassessment is attributable to the Department. A Division Bench of Justice Prathiba M. Singh and Justice Shail Jain observed, "For the delay in Department's passing of the re-assessment orders, the Petitioners cannot be blamed or expected to unduly suffer. Accordingly, the Court is of the view that in the said four writ petitions, the interest...

Bombay HC Quashes SCNs Against Foreign Exporter, Says Customs Act Had No Extra-Territorial Reach Pre-2018

The Bombay High Court has quashed show cause notices issued by customs authorities against a German textile machinery manufacturer and its Indian subsidiary, holding that the notices were without jurisdiction and that a foreign exporter cannot be made liable for alleged misdeclaration by Indian importers for a period prior to the 2018 amendment to the Customs Act. A Bench of Justice G. S. Kulkarni and Justice Aarti Sathe held that proceedings initiated against a foreign entity situated outside...

Kerala High Court Quashes 25 kg Gold Confiscation, Holds Denial Of Cross-Examination Vitiates Proceedings

The Kerala High Court on 3 March quashed a customs confiscation order involving 25 kilograms of gold, holding that denying the petitioners an effective opportunity to adduce evidence and cross-examine witnesses caused prejudice and violated principles of natural justice. Justice Ziyad Rahman A A, sitting as a Single-Judge Bench, allowed writ petitions challenging the Order-in-Original passed by the Customs authority, which had confiscated the gold and imposed penalties. He observed: “The...