Customs | Traveller Entitled To Release Of Goods If SCN Not Issued Within Time, No Liability To Pay Fine Or Penalty: Delhi High Court

The Delhi High Court has clarified that a traveller, whose goods are seized by the Customs, is not liable to pay a redemption fine or penalty for the release of goods if the Department failed to issue a show cause notice within the statutory timeframe.A division bench of Justices Prathiba M. Singh and Madhu Jain observed,“It is the settled position in law, after Union of India &Anr. v. Jatin Ahuja (/2024) that without a SCN under Section 110 of the Customs Act, 1962, the goods of the...

Customs Authorities Lack Jurisdiction To Issue Directions Under GST Law: Madras High Court

The Madras High Court recently held that Customs authorities have no jurisdiction to issue directions under the Goods and Services Tax (GST) law. The Court struck down a February 2021 public notice issued by the Chennai Customs that sought to regulate the GST treatment on auctioned cargo.A single bench of Justice N Anand Venkatesh ruled that such powers lie exclusively with authorities designated under the GST Act."It is not known as to where the 1st respondent gets the power and jurisdiction to...

Customs Housing Agent Can Be Made Liable For Wrongdoings Of Employees, Must Exercise Due Diligence: Delhi High Court

The Delhi High Court has made it clear that a Customs Housing Agent is responsible for the actions of its employees and it must exercise due diligence in supervising their activities.A division bench of Justices Prathiba M. Singh and Shail Jain further held that a CHA may be held accountable for the wrongdoings of its employee but, the punishment in that regard has to be proportionate.The observations come in an appeal preferred by a CHA against revocation of its license over misdeclaration in...

Customs Brokers Licensing Regulations | 'Offence Report Need Not Be Penal'; 90-Day Period Begins Only Upon Receipt Of Report: Madras High Court

The Madras High Court stated that the offence report under Regulation 17(1) Customs Brokers Licensing Regulations, 2018, need not necessarily have a penal connotation. Also, it stated that the 90-day limitation period begins only upon receipt of the offence report.The bench stated that, "the offence report must be received by the office of the licensing authority, and the limitation period will start running only from the date of its receipt. Even if the licensing authority can be attributed...

Delhi High Court Directs Customs To Ensure Strict Implementation Of Minimum Import Price On Soda Ash

The Delhi High Court has directed the Customs authorities to ensure strict implementation of the Minimum Import Price (MIP) imposed by DGFT on Soda Ash, warning of stringent action in case of any violations.A division bench of Justices Prathiba M. Singh and Shail Jain gave “clear directions to all the Customs Authorities…to ensure that the Notification No. 46 of 2024-25 along with Notification No.23 of 2025-26 shall be implemented strictly in letter and spirit. If any Commissionerate of Customs,...

Customs Commissioner Cannot Reassess Duty On Warehoused Imports Cleared From Refineries Beyond His Jurisdiction: Gujarat High Court

The Gujarat High Court stated that the customs commissioner cannot reassess duty on warehoused imports cleared from refineries beyond his jurisdiction. Justices Bhargav D. Karia and Justice Pranav Trivedi agreed with the Tribunal that a proper officer having the administrative jurisdiction over the respective refineries where the goods were removed under section 67 of the Customs Act, 1962, only could have assumed the jurisdiction for reassessment and not the Commissioner, ...

Mens Rea Not Prerequisite For Imposing Penalty U/S 117 Of Customs Act: Karnataka High Court

The Karnataka High Court held that mens rea is not a prerequisite for imposing a penalty under Section 117 of the Customs Act. Section 117 of the Customs Act, 1962, addresses penalties for contraventions not specifically mentioned elsewhere in the Act. Justices S.G. Pandit and K.V. Aravind stated that a plain reading of Section 117 of the Act makes it clear that whenever any person contravenes any provision of the Act or fails to comply therewith, a penalty is attracted. Reading a...

Customs | FERA Penalty U/S 50 Not Applicable For Export Shortfall Below 10%; Exporter Can Write-Off Unrealised Bills: Madras High Court

The Madras High Court stated that the FERA (Foreign Exchange Regulation Act) penalty under Section 50 is not applicable for export shortfall below 10%; the exporter can write off unrealised bills. Justices S.M. Subramaniam and C. Saravanan stated that even otherwise, since Section 18(1)(a) of the Foreign Exchange Regulation Act is to be read along with Section 18(2) and Section 18(3) of the Foreign Exchange Regulation Act, penalty under Section 50 of the Foreign Exchange Regulation Act...

Delhi High Court Orders Economic Offences Wing To Probe Alleged Forgery Of Customs Stamps At Airport

The Delhi High Court has asked the Economic Offences Wing of the Delhi Police to conduct an enquiry into alleged forgery of Customs stamps at the Delhi International Airport.A division bench comprising ​​justices Prathiba M. Singh and Shail Jain passed the direction after the Department claimed that the Customs stamp on an air traveller's representations in connection with their seized gold was fake.When an air traveller makes a representation to the Customs, the Department returns a receipt...

After Delhi High Court Nudge, Customs Dept Finalises Amendments To Baggage Rules, Seeks Time For Infrastructure Upgrade

The Customs Department recently informed the Delhi High Court that the Draft Baggage Rules (amending Baggage Rules, 2016) have been finalized and are ready to be issued.A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta were further informed that the Department is awaiting upgradation of IT infrastructure, for effective implementation of the new rules.“Issuance of amended Baggage Rule without proper regulation and IT Infrastructure will again give rise to litigation thus...

Penalty Can Be Imposed On Courier Agency For Not Reporting Suspicious Consignment To Customs: Delhi High Court

The Delhi High Court has held that the Commissioner of Customs can impose a penalty on a courier service which fails to report suspicious consignments being sent or received from abroad.A division bench comprising Justices Prathiba M. Singh and Shail Jain observed that courier agencies have a responsibility to ensure that whenever there are any suspicious courier packets being delivered or being transacted through them, due diligence ought to be exercised and if there is any suspicion, the same...

Scope Of Appeal Is Limited U/S 28KA Customs Act; Advance Ruling Binding Unless Arbitrary: Madras High Court

The Madras High Court has held that the scope of appeal is limited under Section 28KA of the Customs Act and an advance ruling is binding unless it is palpably arbitrary or irrational. Section 28KA of the Customs Act, 1962 provides that an appeal can be filed to the appellate authority against any ruling or order passed by the Authority within sixty days from the date of communication of such ruling or order. Justices S.M. Subramaniam and C. Saravanan stated that the scope of...