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...

One Rolex Watch Can Be For Personal Use, Not 'Commercial Quantity': Delhi High Court To Customs

The Delhi High Court has made it clear that one Rolex watch seized by the Customs Department from an air passenger cannot be called 'commercial quantity'.It thus cautioned the Department's Adjudicating Authority against “error” on its part, in declaring the same as commercial.“Clearly, this Court is of the view that one Rolex watch cannot be held to be a commercial quantity and there is no reason as to why the same cannot be kept for personal use,” a division bench of Justices Prathiba M. Singh...

Delhi High Court Directs Customs Department To Set Up Passenger Grievance Counters At Delhi Airport

The Delhi High Court has asked the Commissioner of Customs at the IGI Airport to create some counters of the Department outside the airport's security zone, for easy access of aggrieved passengers.The direction was made by a division bench of Justices Prathiba M. Singh and Shail Jain after the Petitioner, a resident of Kuwait whose gold cut piece was seized by the Department, complained that since the counters of the Customs Department are in the secured area, it is not easy to access them for...

Incorrectly Declaring Indian Goods As 'Made In China' Contrary To Public Interest: Delhi High Court Denies Relief In Customs Case

The Delhi High Court has held that misleading consumers about locally manufactured goods by labelling them as 'Made in China' or in some other foreign country is contrary to public interest.The bench was dealing with a Customs case whereby Petitioner's goods (mobile tempered glass) bearing 'Made in China' mark were seized by the Department in a raid.The Department had allowed provisional release of the goods subject to submission of assessable value i.e., Rs. 56,03,995/- bonds and bank guarantee...

CESTAT Can't Admit Appeal Without Pre-Deposit But High Court Can Waive It In 'Rare' Circumstances: Delhi High Court

The Delhi High Court has held that the provision of pre-deposit for preferring an appeal before the Central Excise and Service Tax Appellate Tribunal is mandatory and the forum has no power to admit any appeal without the same.However, a division bench of Justices Prathiba M. Singh and Shail Jain further added that the High Court may, in rare circumstances, waive off the said deposit. It observed,“CESTAT does not have the power to admit appeal without the pre-deposit, however, this Court in...

Customs Broker's Failure To Oversee Warehousing Of Re-Export Goods Leading To Sale In Local Market Is 'A Clear Infraction': Delhi HC

The Delhi High Court has held that a Customs Broker must diligently perform its responsibilities under the 2018 Licensing Regulations however, any failure thereof must be met with a proportionate punishment.While dealing with a case where the broker's license was suspended due to alleged failure to oversee warehousing of goods meant for re-export, leading to their sale in the domestic market, a division bench of Justices Prathiba M. Singh and Shail Jain observed,“There is no doubt that Customs...

Delhi High Court Orders Customs To Release Padma Bhushan Awardee's Imported Artwork Amidst Dispute Over Valuation

The Delhi High Court has ordered the Customs Department to release the artwork of Padma Bhushan awardee Late BC Sanyal, seized amid a dispute surrounding its valuation.A division bench of Justices Prathiba M. Singh and Shail Jain observed there is no conclusive proof that the artwork was made in Pakistan, as claimed by the Department.“The bill of entry itself reveals that the import is being effected from Dubai,” it observed.The Court was dealing with a petition filed by the proprietor of M/s...