High Court
Amount Deposited Under Protest During Customs Probe Can Be Adjusted Towards Pre-Deposit In Appeal: Delhi High Court
The Delhi High Court has held that an amount deposited with the Customs under protest, during investigation by the Department, can be adjusted towards pre-deposit to be made when filing appeal against its order.For context, Section 129E of the Customs Act, 1962 requires deposit of 7.5% of the amounts which are in dispute, when filing an appeal before Commissioner (Appeals) or CESTAT.In the case at hand, the Petitioner contended that the amount required for pre-deposit is already fully satisfied...
Customs Brokers Creating Fake Firms Jeopardise Real Exporters: Delhi High Court Forfeits ₹2 Lakh Over Alleged Duty Drawback Fraud
The Delhi High Court has ordered forfeiture of ₹2,00,000/- out of the ₹5 lakh security deposit made by a Customs Broker at the time of obtaining license, citing allegations of duty drawback fraud against it.A division bench of Justices Prathiba M. Singh and Shail Jain were dealing with an appeal preferred by the Commissioner of Customs against a CESTAT order, restoring the Respondent-broker's license and setting aside forfeiture of security deposit.The Department claimed that the broker...
Delhi High Court Refuses To Entertain Foreign National's Plea Alleging Illegal Arrest By Customs Dept In Gold Smuggling Case
The Delhi High Court recently refused to entertain the writ petition moved by a Turkmenistan national, alleging that the Indian Customs Department had illegally arrested him in connection with alleged gold smuggling back in 2018.A division bench of Justices Prathiba M. Singh and Shail Jain observed that the Department had produced the seized gold jewellery in a sealed cover and the same, upon inspection, could not be termed as 'personal effect' of the Petitioner.“The box was unsealed by the...
Delhi High Court Refuses To Waive Pre-Deposit For Customs Brokers' Appeal Against ₹30 Crore Penalty, Says They 'Misused' License
Stating that Customs Brokers have a significant responsibility under the Customs Act, the Delhi High Court refused to waive the pre-deposit for appeal by certain Customs Housing Agents against ₹30 crore penalty imposed upon them over import fraud.A division bench of Justices Prathiba M. Singh and Shail Jain observed,“The clear position is that the Customs Brokers have a significant responsibility under the Customs Act as also the Customs Brokers Licensing Regulations, 2018. The CHA ought to...
Delhi High Court Rejects Appeals By Customs House Clearing Agent Staff Penalised In ₹3.4 Crore Cigarette Smuggling Case
The Delhi High Court recently refused to show any leniency to two employees of a Customs House Clearing Agent (CHA), found involved in smuggling of cigarettes worth Rs.3,40,74,000/-.A division bench of Justices Prathiba M. Singh and Shail Jain observed that CHAs and their employees are responsible to ensure discharge of obligations under the Customs Brokers Licensing Regulations, 2018.Reliance was placed on Commissioner Of Customs (Airport And General) v. M/S Jaiswal Import Cargo Services Ltd...
Customs Act | Delhi High Court Allows BSNL To Belatedly Challenge ₹12.63 Crore Penalty For Misdeclaration Of Goods
The Delhi High Court has allowed BSNL (Bharat Sanchar Nigam Limited) to belatedly challenge the Rs. 12,63,01,812/- imposed upon it by the Customs Department for misdeclaration of imported goods.A division bench of Justices Prathiba M. Singh and Shail Jain noted that the public autonomous service provider showed no valid justification for the delay in approaching CESTAT however, “considering the fact that there was a voluntary declaration by B.S.N.L., prima facie there appears to be some merit in...
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, ...