No Automatic Release Of Seized Goods Where Customs Claims Oral Show Cause Notice: Delhi High Court

The Delhi High Court has held that unconditional release of seized goods under Section 110(2) of the Customs Act, 1962, cannot be ordered merely because no written show cause notice was issued when the Customs Department specifically asserts that an oral show cause notice under Section 124(a) was issued.The Division Bench of Justices Anil Khetarpal and Shail Jain was dealing with a petition seeking release of a 100-gram gold bar seized from the petitioner at Delhi airport.Petitioner argued that...

GST Authority Not Bound To Seek Additional Documents: Supreme Court Refuses To Interfere With Delhi HC Order

The Supreme Court on Thursday dismissed an appeal against the Delhi High Court's order holding that a GST adjudicating authority is not bound to seek additional documents or clarifications from a taxpayer before passing an order merely because it finds the material already furnished insufficient. The case arose from a plea by Sodexo India Services Private Limited challenging the GST adjudication order.The High Court dismissed its challenge to a GST demand of around ₹8.75 crore under Section 74...

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...

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...

Gujarat High Court Grants ₹1 Crore Tax Refund To Charitable Trust After Exemption Was Omitted

The Gujarat High Court on 25 August quashed the rejection of the revision application filed by Sheth Shree Karshandas Halu Dharamshala Jamnagar and held that the public charitable trust was entitled to exemption under Section 11(1A) of the Income-tax Act.A Division Bench comprising Justices A.S. Supehia and Vaibhavi D. Nanavati held that a bona fide omission to claim a statutory tax benefit in the original return can be corrected through revisional proceedings under Section 264 of the Act. The...

Sugar Syrup With 80% Sugar Used To Make Exempt Biscuits Is Excisable: CESTAT Ahmedabad

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Ahmedabad on 31 August held that sugar syrup containing 80% sugar by weight is marketable and liable to excise duty. A Bench comprising Judicial Member Somesh Arora and Technical Member Satendra Vikram Singh partly allowed the appeal filed by ETC Agro Processing (India) Pvt. Ltd. against a demand of around Rs.49.68 lakh, while remanding the matter for verification and grant of eligible CENVAT credit on sugar used to manufacture...

Patna High Court Refuses To Interfere With ₹60.88 Lakh Service Tax Demand Against FCI Contractor

The Patna High Court on 28 August refused to interfere with a Service Tax demand of Rs. 60.88 lakh, along with interest and penalties, raised against a contractor engaged by the Food Corporation of India (FCI). A Division Bench of Justices Rajeev Ranjan Prasad and Ramesh Chand Malviya dismissed the writ petition filed by Anjani Kumar Singh, while granting him liberty to pursue the statutory remedy available under law. It observed: “We have noticed that neither before the competent...

Delhi ITAT Says Entire Bogus Purchase Value Can't Be Added To Income, Applies 5% Rate On ₹5.94 Cr Turnover

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) on 31 August held that where both purchases and corresponding sales are found to be bogus, the entire purchase value cannot be added to income without accounting for the profit element arising from the transactions. Judicial Member Anubhav Sharma and Accountant Member Sanjay Awasthi partly allowed HSB Home Solutions Ltd.'s appeal for Assessment Year 2012-13, upholding the reopening of the assessment and directing the Assessing Officer...