Customs Act, 1962

The appellants, Indian citizens residing abroad, were caught with large amounts of foreign exchange and were penalised Rs 3 lakhs each under the Customs Act. They appealed the penalty under s.129A, and the Customs Appellate Tribunal, invoking s.129E, reduced the security deposit to Rs 1 lakh each. Claiming inability to…

Doaba Co‑operative Sugar Mills received an excess‑production rebate of Rs 5,60,679.40 under Notification 108/78. The Superintendent later issued a show‑cause notice for recovery of the alleged excess amount. The Assistant Collector held that no excess existed and that the notice was barred by limitation, dropping the d…

The Supreme Court considered a batch of writ petitions challenging preventive detention orders issued under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (COFEPOSA) and the National Security Act, 1980. The petitioners, many of whom had absconded or evaded execution of the orders,…

The Commissioner of Customs appealed against a Tribunal order that had allowed Indian Rayon & Industries Ltd. to claim duty exemption under Notification No. 94/96-Cus for three re‑imported consignments. The assessee had originally relied on Notification No. 158/95-Cus, executing separate bonds and agreeing to re‑export…

The Union of India appealed against the Bombay High Court's order that set aside the customs collector's confiscation of prohibited goods and the vessel MANSC0‑3 under Sections 111(d), 111(f) and 115(2) of the Customs Act, 1962. The High Court had held that the vessel's arrival time for the 24‑hour import‑manifest dead…

Madras Marine & Co., a ship‑chandler, imported goods, stored them in a customs‑bonded warehouse in Tamil Nadu and supplied them on board foreign‑going vessels. The State of Madras assessed sales tax under the Tamil Nadu General Sales Tax Act, 1959, contending the sales occurred within the state. The company argued the …

The Commissioner of Customs appealed against Reliance Petroleum Ltd. for denying a concessional duty exemption on a second‑hand heavy‑duty crane imported in dismantled condition together with a self‑propelled modular transport (SPMT) system for use in erecting a crude petroleum refinery. The importer claimed exemption …

The appellant, Andromeda Foundation India Ltd, imported medical equipment under a customs duty exemption notification of 1988 and 1993, which required it to furnish detailed information on the use of the equipment and to provide free treatment to a specified percentage of poor patients. Despite multiple requests, the a…

The Supreme Court examined whether the Kerala Government Order of 26 September 2000, which retrospectively withdrew electricity tariff concessions granted to classified hotels under a tourism‑industry policy, was valid. The hotels argued that the withdrawal violated their accrued rights, the doctrine of promissory esto…

The Tamil Nadu Electricity Board and the State of Tamil Nadu appealed against a Madras High Court order that upheld tariff concessions for high‑tension industries set up before 15‑02‑1997. The dispute centered on the meaning of "set up" in the 1995 and 1997 government notifications and whether the doctrine of promissor…

WIPRO Ltd., an importer of computer components, challenged the customs valuation rule that mandates adding 1% of the FOB value of goods as loading, unloading and handling charges even when the actual charges are known and ascertainable. The issue was whether the proviso (ii) to sub‑rule (2) of Rule 9(2) of the Customs …

The Commissioner of Customs confirmed duty, interest, penalty and confiscation liability on nine consignments of gold and silver imported by M/s Aafloat Textiles (I) Pvt. Ltd. under Special Import Licences (SIL) that were later discovered to be forged. The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) can…

Tata Iron and Steel Co. imported equipment and associated engineering documents under three contracts (MD 301 for documents, MD 302 for equipment, and an umbrella contract). The customs authority issued show‑cause notices alleging that the value of the engineering documents should be included in the customs value of th…

The revenue appealed against JOCIL Ltd. challenging the classification of imported crude palm stearin. The importer had declared the product under Chapter 15 sub‑heading 15.11.90.90 as non‑edible industrial grade crude palm stearin, while the customs authorities re‑classified it as RBD palm stearin under Chapter 38 sub…

Priyanka Overseas Pvt. Ltd. imported 10,681.832 metric tonnes of palm kernel from Nigeria in 1987 under an Open General Licence (OGL). The Customs authorities treated palm kernel as a canalised item, confiscated the goods and imposed a redemption fine and penalty. The company argued that palm kernel is distinct from pa…

The Faridabad CT Scan Centre, a private diagnostic centre not attached to any hospital, sought exemption from customs duty on imported hospital equipment under Notification No. 64188 dated 1‑3‑1988. It argued that similar centres had been granted the exemption and that denial violated Article 14 of the Constitution. Th…

Navin Chemicals imported crude emetine under a duty‑exemption licence that required re‑export after processing. The goods were found to be emetine hydrochloride with impurities, leading the Additional Collector to confiscate them and offer a fine of Rs 10,000 for release. The company appealed to the Customs, Excise & G…

The Federation of Customs House Agents Association and others filed a writ petition challenging Regulation 8 of the Customs House Agents Licensing Regulations, 1984, which permitted the grant of a temporary licence to act as a customs house agent without first passing the qualifying examination required under earlier r…

M/S IVRCL Infrastructure & Projects Ltd. entered into a joint venture to import a hot‑mix plant for road construction and claimed exemption from customs duty under Notification No. 217 dated 1‑3‑2001. The plant was split between a German supplier (critical items) and an Indian supplier (containers, frames, etc.), and t…

The petitioners, former members of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), challenged Section 129(6) of the Customs Act, 1962, which bars a person who has ceased to be a President, Vice‑President or Member of the Tribunal from appearing before it. They argued that the provision was ultra‑vires …

The petitioner was detained under Section 3(1)(i) of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 after customs seized a large quantity of dutiable cell‑phones from his baggage at Chennai Airport. He claimed the goods were not his, that the customs statement was made under coerc…

The case involved the smuggling of 184 gold biscuits concealed in meal trolleys of a Lufthansa flight, discovered by customs officers in 1996. Co‑accused Varyam Singh and Ranbir Singh named Pramod Kumar Dhamiya as an investor and participant in the smuggling, but the respondent evaded arrest and was declared a proclaim…

Mis Presto Industries, an industrial unit in the Kandla Free Trade Zone, claimed exemption from excise duty on waste scrap under Notification No.16/83‑CE after paying only basic customs duty on the scrap cleared for home consumption. The Revenue discovered that the additional duty under Section 3(1) of the Customs Tari…

The appellant, convicted under the Customs Act for possessing smuggled gold, was served a notice under Section 6(1) of the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 alleging that his property was illegally acquired. The authority, after a hearing, ordered forfeiture of the property …

Mis Ballar Pur Industries Ltd imported a granite press roll, a component used to finish paper, and the Collector (Appeals) classified it under tariff heading 84.31 of the Customs Tariff Act, 1975, attracting a 40% duty. The Customs, Excise and Gold (Control) Appellate Tribunal (CEGAT) re‑classified the roll under headi…

Mis Eicher Tractors Ltd imported a five‑year‑old stock of bearings from a Japanese vendor at a 77% discount and declared the price actually paid in its Bill of Entry. The Assistant Commissioner of Customs rejected the declared value, deeming the discount abnormal, and instead fixed the value using the vendor's price li…

Ahamed Nassar was detained under Section 3(1)(i) of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (COFEPOSA) for alleged smuggling of cellular phones and cigarettes. He filed a representation on 21 May 1999, which was processed with short postal delays that the Court held were no…

United Offset imported a Colour Scanner Chromagraph C‑299 and initially cleared it under tariff heading 84.35 as "other printing machinery". The Assistant Collector later re‑assessed the goods under heading 90.25(i) and subsequently issued a demand for additional duty, claiming the scanner fell under heading 90.10. The…

The Commissioner of Customs issued a show‑cause notice to Mis. B.V. Jewels and its sister concern Mis. B.V. Star alleging shortage of gold, diamonds and capital goods, unauthorised use of duty‑free capital goods and violations of the EXIM policy and Customs notifications. The Customs Tribunal (CEGAT) set aside the Comm…

The case concerned two ocean‑going vessels imported in 1968 under a customs exemption for ships not imported for breaking up. When the vessels were later scrapped in 1983‑84, the ship owners argued that duty should be calculated on the 1968 import value, while the Union of India contended that the exemption notificatio…

The wives of three men detained under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (COFEPOSA) challenged the validity of the detention orders, arguing that the men were already in custody, that the grounds described the offence as "bailable" indicating non‑application of mind, t…

The appellant, Kesari Nandan Mobile, challenged two provisional attachment orders dated 13 November 2024 and 18 December 2024 issued by the Assistant Commissioner of State Tax under section 83 of the Central Goods and Services Tax (CGST) Act. The orders were issued after earlier attachment orders of October 2023 had au…

M.J. Exports Ltd imported 55 haemodialysers under the Open General Licence on 19 October 1988, claiming exemption from customs duty under Notification No. 208 of 1981 for life‑saving equipment and paid no duty. The goods were subsequently intended for export to the USSR. Customs authorities held that such life‑saving i…

Jain Exports Pvt. Ltd. and others imported liquid caustic soda and were required to pay customs, auxiliary and countervailing duty at 92.5% while State Chemicals and Pharmaceuticals Corporation of India Ltd. paid only 10% under an exemption granted under Section 25(2) of the Customs Act. The appellants filed a writ pet…

Northern Plastic Ltd. imported 59 jumbo rolls of unexposed photographic colour films, describing them in the Bill of Entry as "Cinematographic Colour Films (Unexposed) Positive" and claimed customs and counter‑vailing duty exemptions under an Open General Licence. Customs authorities held the description to be a misdec…

M/s Pankaj Jain Agencies, an importer of ball bearing components, challenged Notification No. 142/86-Cus., issued under Section 25(1) of the Customs Act, 1962, which reduced an earlier exemption and raised customs duty on its imports. The petitioners argued that the notification was not in force at the time of import, …

Harbans Lal was arrested in March 1970 and a large quantity of gold and currency was seized under Section 110 of the Customs Act, 1962. The Collector extended the six‑month seizure period by another six months through an ex‑parte order without giving the appellant notice or a hearing, and later issued a show‑cause noti…

The appellants, Jain Exports Pvt. Ltd. and others, imported two consignments of refined industrial coconut oil in 1982 under an Open General Licence, but the 1980‑81 Import Policy listed coconut oil as a canalised item that could be imported only through the State Trading Corporation. The Customs Collector ordered conf…

The petitioners, who held temporary licences as Customs House Agents, were denied regular licences after failing to pass the written and oral examinations prescribed under the Customs House Agents Licensing Regulations, 1984. They challenged (i) the interpretation of Regulations 8 and 9, arguing that candidates who cle…

Noble Resources and Trading India Private Ltd, a two‑star export house, imported crude degummed soybean oil under a duty‑free credit entitlement certificate issued pursuant to the EXIM Policy 2002‑2007. The Customs authorities denied the exemption, holding that the oil was an agricultural product excluded by Notificati…

Tata Chemicals Ltd. imported low‑ash metallurgical coal and claimed exemption from basic customs duty under Notification No.35/90, which exempts coking coal with ash content below 12%. The customs inspector, without the presence of a company representative and contrary to Indian Standard IS 436, drew his own samples an…

The Supreme Court examined whether a person questioned under the Customs Act, 1962 or the Foreign Exchange Regulation Act, 1973 is entitled to the assistance of a lawyer. The petitioners argued that denial of counsel violated Article 20(3) and Article 21 of the Constitution, while the Department contended that such per…

The petitioner, N.K. Bapna, Managing Director of a plastic manufacturing company, was issued a preventive detention order under Section 3(1) of the Conservation of Foreign Exchange & Prevention of Smuggling Activities Act, 1974, for allegedly abetting smuggling of goods stored in bonded warehouses. He challenged the or…

MJ Exports Ltd., a recognised trading house, imported haemodialysers from West Germany under an Open General Licence (OGL) for "stock and sale" and cleared them for "home consumption" free of duty. The goods were repacked in India and exported to the USSR. Customs detained the goods, deeming the re‑export impermissible…

Syed Farooq Mohammad was detained under Section 3(1) of the Prevention of Illicit Traffic in Narcotic Drugs and Psychotropic Substances Act, 1988 after narcotics were seized from two cars on 19 July 1989. He challenged the detention on grounds of a five‑month delay in issuing the order, a further delay in arrest, non‑s…

M/s. Kushang Apparel Ltd imported CTV kits and stored them in a bonded warehouse for a year under Section 59 of the Customs Act, 1962. The importer failed to clear the goods or pay warehouse rent, leading to multiple auctions and tender sales. The Customs Department demanded customs duty, arguing that it should be calc…

The appellant, M/s Nola Ram Dulichand Dal Mills, challenged a 2009 circular that clarified exports by 100% Export Oriented Units (EOUs) were ineligible for duty credit under the Vishesh Krishi Upaj Yojna scheme for 2006-07. The High Court dismissed the writ, and the Supreme Court examined whether the circular amounted …

The assignee imported an oil drilling rig and declared its CIF value for customs clearance. The Customs Commissioner rejected the declared price, deeming it under‑declared, and levied duty, penalty and confiscation, arguing that the buyer and seller were related parties and the price was therefore not the transaction v…

The appellant, a stone‑processing firm, imported calcareous stone slabs from Italy, obtaining certificates and expert reports that the material was not marble. Customs seized the goods, classifying them as "marble" under tariff entry 25.15 and the restricted item 62 of the Import‑Export Policy, and ordered confiscation…

The Commissioner of Customs cancelled the Customs House Agent (CHA) licence of Mis. K.M. Ganatra & Co. after finding that the licence had been sub‑let to unauthorised persons, facilitating fraudulent export documentation and causing revenue loss. The Customs, Excise and Service Tax Appellate Tribunal, exercising its po…

The Union of India appealed against a Calcutta High Court order that quashed a detention order issued under Section 3(1) of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (COFEPOSA) against Rajen Ghosal, an exporter accused of mis‑declaring export consignments. The High Court had …

The appellant, a Polish citizen, was caught at Chennai airport with large amounts of foreign currency and his passport was impounded. He was detained under Section 3(1)(i) of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (COFEPOSA) to prevent future smuggling, and he challenged t…

The Union of India appealed against a Madras High Court order that quashed a preventive detention order passed under Section 3(1)(i) of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 against Smt. Ratnamala (referred to as the detenu). The detenu’s father had made a representation …

Ibrahim Ahmad Batti, a Pakistani national, was detained under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act (COFEPOSA) on 1 July 1982 for alleged smuggling. The grounds of detention were served in English and Urdu within five days, but Urdu translations of the bulk of the documents rel…

The Union of India issued a 1985 Reward Scheme for informers and government servants involved in seizures under the Customs, Central Excise & Salt, Gold Control and Foreign Exchange Regulation Acts, later amended in 1989 to cap rewards at Rs 1 lakh per seizure and Rs 10 lakh in a career. IPS officer R. Padmanabhan, who…

The All India Glass Manufacturers' Federation imported 5,000 metric tonnes of soda ash from Kenya and paid customs duty based on the invoice value. After distribution, the goods were found to be sub‑standard; the foreign seller compensated the Federation with a credit note reducing the price. The Federation sought a re…

Essar Steel Ltd. entered into a technical services agreement with Met Chem Canada Inc. to obtain consultancy for setting up a steel plant in India, and subsequently placed a purchase order for the plant and machinery. The Customs authority added the fee for the technical services (DM 78.95 million) to the customs value…

Hind Plastics imported PVC and paid customs duty and additional duty. It filed writ petitions in the Bombay High Court seeking a refund of duty on the packaging, claiming exemption under Notification No. 184‑CUS dated 2 August 1976 issued under section 25 of the Customs Act. The company argued that the invoice value in…

M/s Vellanki Frame Works imported timber and claimed exemption from Central Sales Tax under Section 5(2) of the CST Act, arguing that the goods were sold on the high seas to end‑buyers before crossing India’s customs frontiers, making the sale a "sale in the course of import". The Commercial Tax Officer and the High Co…

The Commissioner of Central Excise issued a show‑cause notice to M/s. Bajaj Auto Ltd. alleging that it supplied aluminum ingots to M/s. Anurang Engineering at an under‑valued landed cost, thereby evading excise duty on the finished castings. The adjudicating authority held Bajaj liable for duty, penalty and interest, b…

Mis. Canon Steels Ltd appealed to the Supreme Court against the Punjab & Haryana High Court’s dismissal of its customs appeal, arguing that the High Court lacked territorial jurisdiction because the original adjudication order was passed in Mumbai and the appellate order by CESTAT was issued in Delhi. The Supreme Court…

The Union of India issued show‑cause notices under the Customs Act, 1962 alleging mis‑declaration, over‑invoicing and misuse of foreign exchange by Adani Exports Ltd. The adjudicating authority imposed penalties under Section 50 of the Foreign Exchange Regulation Act, 1973 read with Sections 49(3) and 49(4) of the Fore…

The appellant, Bobby, was arrested for alleged diesel oil smuggling and granted bail on 12 April 2005, which he did not avail, remaining in custody when a preventive detention order was issued under COFEPOSA on 3 May 2005. He challenged the order by filing a writ petition under Article 226, which the Bombay High Court …

D.R. Enterprises Ltd. imported a web printing machine in 1987 and claimed a concessional customs duty under the Open General Allowance (Notification No. 114/80-CUS). The Customs authorities disputed the claim, asserting that the machine's output capacity was only 25,000 copies per hour, below the required 30,000/35,000…

Shroff & Co., a partnership dealing in wines and spirits, imported liquor into Bombay and stored it in a bonded warehouse under the Maharashtra Foreign Liquor (Storage in Bond) Rules. The appellants challenged the inclusion of countervailing duty in the assessable value for octroi, arguing that the duty was not incurre…

The case concerned a senior judicial officer, R.R. Parekh, who was dismissed from service after two disciplinary inquiries found him guilty of misconduct for awarding sentences below the statutory minimum under Section 135 of the Customs Act, allegedly motivated by corrupt or oblique motives. The High Court had revisit…

The petitioner, a publisher of Marxist literature, imported books containing the writings of Mao, Marx, Engels and Lenin in 1978. Customs seized the books and, after issuing multiple show‑cause notices, ordered their confiscation under Section 111(d) of the Customs Act, 1962, invoking Notification No. 77 of 1956 which …

The Union of India amended a customs exemption notification under Section 25(1) of the Customs Act, 1962, withdrawing a 5% concessional duty for a high‑speed printing machine imported by A.B.P. Pvt. Ltd. The assessees challenged the amendment, arguing it was ultra vires and that the High Court correctly set it aside be…

The Customs authorities seized typewriters and calculating machines and, under Section 110(2) of the Customs Act, were required to issue a show‑cause notice within six months or return the goods. They sought and were granted an extension of six months under the proviso to Section 110(2) but did not give notice of the p…

The petitioners challenged the preventive detention of Venilal Mehta, his daughter Pragna Mehta and son Bharat Mehta under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974, alleging that the grounds of detention were not communicated in a language they understood, that their retract…

The appellant, Mis Carpenter Classic Exim Pvt Ltd, was found by the CESTAT to have under‑valued its import consignments by about 65% to evade customs duty, leading to penalties under Sections 112(a) and 114A of the Customs Act, 1962. The company argued that a payment of Rs. 25 lakhs made before the show‑cause notice sh…

Vishal Exports Overseas Ltd exported 4.8 lakh coffee mugs at a declared FOB price of US $3.40 per piece and claimed Duty Entitlement Pass Book (DEPB) credit. The Customs authorities alleged that the FOB value was inflated to Rs.157 per piece (US $3.40) and recomputed it at Rs.80 per piece, confiscated the goods and imp…

The petitioners challenged the preventive detention of the husband of A.C. Razia under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (COFEPOSA). The detention order relied on statements and retractions recorded in Malayalam, but the Central Government, which considered the detenu…

The respondent, V.P. Sayed Mohammed, was seized with 28 gold bars at Trichur railway station and charged under s.135(b) of the Customs Act, 1962 read with s.85(ii) of the Gold (Control) Act, 1968. Evidence included the inspector’s seizure report, a ticket collector’s testimony, a goldsmith’s certification that the bars…

Indu Nissan OXO Chemicals imported certain products and disputed their classification, leading the Customs authorities to levy a penalty of Rs 10 crore under Section 112(a) of the Customs Act, 1962. The company appealed to CESTAT, which conditioned the hearing on a pre‑deposit of Rs 2 crore under Section 129E, a requir…

The Supreme Court, by a 9-judge bench, answered a reference on the interpretation of Articles 301-304 of the Constitution concerning the validity of entry taxes levied by states. The majority held that taxes simpliciter are not within the contemplation of Part XIII of the Constitution, and the word 'free' in Article 30…

A. Kumar filed several writ petitions challenging a customs show‑cause notice under Section 124 of the Customs Act, a seizure order under Section 132‑A of the Income Tax Act, and the demurrage rates of the Madras Port Trust. The customs authorities had found that the imported stainless‑steel circles, declared as "defec…

The petitioners, Pratibha Processors and others, imported polyester filament yarn under an Open General Licence, warehoused the goods and later obtained an Advance Licence under the Duty‑Exemption Entitlement Certificate (DEEC) scheme, clearing the goods with nil duty. The Customs authorities, however, assessed the Bil…

The respondent, an exporter of coir yarn, initially obtained an "entry outwards" for vessel N and paid export duty at the 10% rate. Because the vessel lacked space, the goods were not exported and were later re‑shipped on vessel P after amending the shipping bills on 9 August 1966, by which time the export duty rate ha…

The respondent imported goods claiming they were accessories exempt from customs duty, paid duty under protest, and later sought a refund. The Assistant Collector granted a refund of about Rs 2.5 crore for certain items, deeming them accessories, while denying refund for others as spares. The Commissioner (Appeals) inv…

M/s. Gaurav Distributors (P) Ltd. purchased ball bearings that had been exported by SKF Bearing (I) Ltd. under export bonds and re‑imported them in March 1995. The appellant claimed exemption from customs duty under the proviso to Section 20 of the Customs Act, 1962, arguing that the phrase "goods exported in bond" sho…

M/s D.L. Steels imported two consignments of dried pomegranate seeds (anardana) from Pakistan and classified them under heading 1209.99.90 of the Customs Tariff, attracting 5% duty. The Customs authorities re‑classified the goods under heading 0813.40.90, imposing a 30% duty, leading to differential duty, penalty and i…

Khandelwal Metal & Engineering Works imported brass scrap and argued that the "additional duty" under Section 3(1) of the Customs Tariff Act was a counter‑vailing duty that could not be levied because brass scrap is not manufactured in India and that it should be treated as a "master alloy" exempted under Notification …

The State of Kerala issued a Government Order on 11 July 1986 promising exemption from building tax for hotels set up in the state, and subsequently amended the Kerala Buildings Tax Act, 1975 by inserting Section 3A on 6 November 1990 to give effect to that promise. M/s Manuelsons Hotels Private Limited relied on the p…

Hyderabad Industries Ltd. and another imported asbestos fibre before 1986 and were demanded additional customs duty under Section 3(1) of the Customs Tariff Act, 1975. The appellants argued that the fibre, obtained by merely separating it from the parent rock, was not a manufactured article and therefore not liable to …

The petitioners, Subhash Photographies, imported photographic machinery and claimed a concessional customs duty by classifying the equipment as "industrial plant" under Heading 98.01 of the Customs Tariff Act, 1975. The Customs authorities treated the machinery as falling under Chapter 90, levying a higher duty. The Ce…

The appellants, offshore drilling companies, operated oil rigs in India's designated offshore areas (continental shelf and exclusive economic zone) and sought to import stores for the rigs without customs duty, relying on the exemption for foreign‑going vessels under the Customs Act. The Revenue authorities, citing not…

The appellant, Dai-ichi Karkaria Ltd., imported raw materials for manufacturing goods supplied to ONGC under a customs duty exemption granted by Notification No. 210/82 (amended 1983) which was to remain in force until 10 September 1987. The Union of India later issued Notification No. 513/86, reducing the exemption to…

Sun Industries shipped plywood panels from Calcutta to Colombo and claimed drawback under Section 75 of the Customs Act. The vessel developed engine trouble, returned, and ran aground in Indian territorial waters, after which the cargo was salvaged. The Assistant Collector and Appellate Collector rejected the drawback …

The Commissioner of Customs, Mumbai issued a show‑cause notice demanding customs duty and penalty from M.M.K. Jewellers for a shortage of duty‑free gold detected during a stock‑taking in 1995. The respondent argued that the shortage was due to permissible manufacturing wastage, that the gold existed as dust/slurry, and…

The Commissioner of Customs and Central Excise, Goa appealed against M/s Adani Exports Ltd. challenging a High Court decision on an application under Section 130A of the Customs Act, 1962. The issue was whether the High Court is statutorily obliged to call for a statement of the case from the Appellate Tribunal before …

The appellants, manufacturers of polyester fibre yarn, imported di‑methyl‑terephthalate (DMT) and paid customs duty, using it to produce blended yarn that was exported. They sought a full drawback of the customs duty under Section 75 of the Customs Act, 1962 and Section 37 of the Central Excises & Salt Act, 1944, relyi…

State Bank of India (SBI) imported computer software and manuals from Ireland and paid customs duty on the full invoice value of US$4,084,475. SBI later claimed a refund, arguing that only the cost of the software for a single site (US$401,047) should be assessable, while the country‑wide licence fee (US$3,683,428) was…

M/s Sanjivani Non‑Ferrous Trading Pvt. Ltd. imported various grades of aluminium scrap and declared the transaction value in its Bills of Entry, which the Assessing Officer rejected as being too low and reassessed a higher value. The High Court directed the Deputy Commissioner to pass a speaking order rejecting the dec…

The Collector of Customs, Bombay, seized a shipment of polyethylene scrap imported by M/s Hardik Industrial Corporation after discovering that the material was actually serviceable and ready for use. The Collector ordered the goods to be assessed as serviceable material, enhanced in value, confiscated, and the importer…

Mis Appollo Tyres Ltd., while setting up a tyre manufacturing plant, entered into an agreement with General Tyre International Company to act as its purchasing agent for equipment. The agreement required the appellant to pay a 3% commission on the FOB value of each item procured. Customs assessed duty on the invoice va…

The complainant alleged that Border Security Force personnel, including the appellants, entered his shop, demanded Rs 10,000 as illegal gratification, ransacked the premises, seized goods and documents, and threatened him, constituting offences under IPC sections 395, 447 and 506. The appellants claimed that their acti…

The importer claimed that wool material it brought in was "wool waste" and therefore exempt from customs duty under Notification 240/76‑cus. An expert committee held the goods were not wool waste, leading the Additional Collector of Customs to levy duty and confiscate the consignment. The importer appealed to the Custo…

Ibrahim Nazeer was detained under Section 3(1)(i) of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act (COFEPOSA) after customs seized electronic goods from his baggage at Chennai airport. His wife filed a habeas corpus petition challenging the detention, arguing that the detaining authori…

M/S. Saraf Exports, a partnership engaged in manufacturing and exporting wooden handicrafts, claimed deductions under s.80‑IB of the Income Tax Act, 1961 for amounts received under the Duty Entitlement Pass Book (DEPB) and Duty Drawback schemes for AY 2008‑09. The Deputy Commissioner disallowed the deductions, a decisi…

Nanya Imports & Exports Enterprises, a partnership dealing in leather‑footwear materials, imported PU‑coated leather fabrics intended for use as insoles and midsoles. The goods were supplied in 50‑metre lengths and rolled for safe transport, but the Customs authority denied the exemption under Notification No. 20/99, c…

The importer C.L. Jain Woolen Mills brought polyester filament yarn from Korea, which was seized by customs under Section 111(d) of the Customs Act, 1962. The High Court quashed the seizure and ordered release of the goods without demurrage, a decision that became final after the Revenue's special leave petition was di…

Mis. SIV Industries Ltd., a 100% Export Oriented Unit, sought to withdraw (debond) from the EOU scheme and paid all customs and excise duties as required. The dispute centered on whether excise duty on the finished goods in stock at the time of debonding should be levied under Section 3(1) of the Central Excise and Sal…

The Customs department seized a large quantity of rough diamonds from M/s. M. Ambalal & Co. after the firm failed to produce a valid import licence. The firm was directed to pay duty, a redemption fine and penalty, but appealed claiming exemption under Notification No.247-Cus dated 02‑08‑1976, which exempts certain art…

The petitioners imported ball bearings that arrived at Madras port on 20 February 1989 but could not be unloaded due to a strike. They presented a bill of entry on 27 February, which was received on 28 February, and entry inward was granted on 2 March 1989. The rate of excise duty was increased on 1 March 1989, leading…

The appellants challenged the forfeiture of their properties under the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 (SAFEMA), arguing that the detention order against them under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (COFEPOSA) had been re…

The Supreme Court examined whether State entry‑tax statutes could levy tax on goods imported from abroad once they entered a local area for consumption, use or sale. It held that the import of goods ends when they cross India's customs frontier and are released for home consumption, after which the State has full compe…

The appellants, Milak Brothers, exported blanched, roasted and salted peanuts packed in vacuum containers, claiming that the processed product was a "processed food" and not a "groundnut kernel" for which export duty was levied under the Indian Tariff Act, 1934 and the Customs Tariff Act, 1975. The Revenue argued that …

Former civil servants, scholars and activists filed a writ petition under Article 32 seeking a court order directing the Union Government to cancel existing licences and stop granting new licences for the export of arms and military equipment to Israel amid the Gaza conflict. The petitioners alleged violations of inter…

The appellant, an Afghan national, was seized at Raja Sansi Airport with 22 packets of heroin and later arrested after a 15‑hour delay. He initially confessed to customs officials but later retracted, and was convicted under Sections 22 and 23 of the NDPS Act, a judgment affirmed by the High Court. On appeal, the Supre…

The importer South India Television Ltd. imported ceramic capacitors and diodes from Hong Kong and declared low invoice prices. The Customs Department issued a show‑cause notice alleging under‑invoicing and invoked Rule 8 of the Customs Valuation Rules to enhance the assessable value based on export declarations from t…

Relax Safety Industries imported a consignment described as "moulded plastic parts" and "plastic fabricated cups" and declared a low value. Subsequent investigation revealed that the goods were actually dust‑and‑mist respirators, earplugs and a mould, which had been grossly undervalued and mis‑declared. The Collector o…

Canon India imported digital still image video cameras which were cleared as exempt from customs duty by the Deputy Commissioner of Customs on 24 March 2012 under Notification No.15/2012. On 19 August 2014 the Additional Director General of the Directorate of Revenue Intelligence (DRI) issued a show‑cause notice under …

The appellant Kanhaiyalal was convicted under the Narcotic Drugs and Psychotropic Substances (NDPS) Act based primarily on a statement he gave to an officer under Section 67 of the Act. The key issues were whether such a statement could be used as a confession for conviction, whether it attracted the bar of Sections 24…

Sea Pearl Industries, a processor of seafood, entered into an agreement with an eligible export house to export its processed products. The export house opened a Letter of Credit in its own name, which was later endorsed to Sea Pearl and the foreign exchange credited to its account. Sea Pearl claimed a deduction under …

The petitioners, foreign nationals arrested for allegedly smuggling gold biscuits, were denied bail and subsequently detained under Section 3(1) of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (COFEPOSA). They challenged the detention, arguing that there was no compelling necess…

Sneh Enterprises imported lead‑acid batteries from Taiwan, which landed in Mumbai on 16‑April‑2002 and were trans‑shipped to Delhi where the Bill of Entry was filed on 22‑May‑2002. On the same day the Central Government issued a notification under Section 9A of the Customs Tariff Act, 1975 imposing an anti‑dumping duty…

The Commissioner of Central Excise challenged Gujarat Ambuja Exports Ltd.'s claim of a concessional customs duty rate on imported crude palm oil under Notification No. 21/2002-Cus (as amended by Notification No. 66/2004). The importer used the crude oil mainly to produce refined edible oil (about 75% of the output) and…

The appellants, Devchand Kalyan Tandel and Jayantilal, were charged under Section 135(1)(a) of the Customs Act, 1962 for transporting ten silver ingots without a transport voucher in a notified area under Section 11‑K. The prosecution recovered the ingots from a secret compartment of an ambassador car and established t…

The respondents imported 13,500 metric tonnes of RBD palm oil in stainless‑steel containers, which are a prohibited item, but the containers were painted to appear as mild‑steel. Customs issued show‑cause notices under Section 28 (duty not levied or short‑levied) and Section 124 (confiscation) of the Customs Act. The D…

A commercial vessel, M.V. Jag Darshan, was detained and rummaged by customs officers at Paradip Port, leading to the seizure of contraband goods. The Deputy Conservator of Paradip Port Trust, the second respondent, ordered the vessel to be moved to a distant anchorage, interrupting the rummage and allowing the contraba…

The appellant, a returning resident from Dubai, imported a used Volvo car under the Transfer of Residence Rules and paid customs duty based on an assessable value of Rs 53,305.44. The customs authorities later issued a show‑cause notice under Section 20(1) alleging a short levy, re‑valuing the car at a much higher amou…

The respondent, Mis. Ajay Kumar & Co., purchased a transferable Duty Entitlement Pass Book (DEPB) and associated licences originally issued to Mis. Parker Industries. The Commissioner of Customs issued show‑cause notices to the respondent demanding recovery of Rs.12,45,174 under Section 28(1) of the Customs Act, but th…

The Commissioner of Customs, Maharashtra, alleged that Galaxy Entertainment (I) Pvt. Ltd. undervalued a 20‑lane bowling alley imported from the USA by declaring a CIF price of US$15,000 per lane, whereas comparable imports were priced at US$30,000 per lane. The Department further claimed that a technical and installati…

The case involved the import of undenatured ethyl alcohol which the Customs Department alleged was undervalued and imported without a valid licence, leading to a demand for differential duty, penalties and confiscation. The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that the invoices showing a pri…

The case arose from a complaint filed by the Deputy Chief Controller of Imports and Exports alleging that several directors of Jain Sudh Vanaspati Ltd. conspired to illegally import beef tallow in violation of the Imports and Exports (Control) Act, 1947 and Section 120B of the IPC. The Delhi High Court, invoking Sectio…

The respondents were detained for carrying 551 foreign‑origin gold biscuits, and the Commissioner of Customs held that they failed to discharge the burden of proof under Section 123 of the Customs Act, ordering confiscation and penalties. The Appellate Tribunal set aside the confiscation orders, finding that the respon…

Mahindra & Mahindra Ltd. entered into a ten‑year technical know‑how agreement with Peugeot, a French firm, paying a lump‑sum of 15 million French Francs. The company later imported CKD engine packs and service parts. The Customs Assistant Collector held that the invoice price of the CKD packs was not the sole considera…

The police and customs officials recovered 101 silver ingots worth over Rs. 18 lakh from the appellant's wadi, which lay within the 50‑km specified area and the ingots were notified as specified goods. The appellant admitted the recovery but claimed he did not know how the ingots came to be there and had not filed any …

RBF Rig Corporation imported rig spares under a contract with ONGC and paid customs duty because it could not obtain Essentiality Certificates required for exemption. The Delhi High Court, exercising its writ jurisdiction under Article 226, directed ONGC to issue recommendatory letters and the DGH to issue the certific…

Udayani Ship Breakers Ltd. purchased a ship that had been imported by another Indian company for ship‑breaking. The ship was damaged after arrival in India and was sold to the appellant on an "as is where is" basis for a reduced price of Rs 12.01 crore, whereas the original import price was Rs 24.78 crore. The appellan…

The respondents applied for Constable‑Driver positions in the Haryana Police and answered "No" to the application queries whether they had ever been arrested or convicted. Verification later revealed that they had been arrested in connection with FIRs but were acquitted and released on bail without ever being taken int…

The Collector of Customs appealed against the orders of the Customs, Excise and Gold (Control) Appellate Tribunal (CEGAT) which had allowed two importers, Mis. Maruti Udyog Ltd. and Mis. Maestro Motors Ltd., to claim exemption under customs notifications. The Court examined whether goods imported in completely knocked …

The Customs Department filed a review petition challenging the Supreme Court's earlier decision in Canon India Ltd. v. Commissioner of Customs, which held that Directorate of Revenue Intelligence (DRI) officers were not "proper officers" under section 28 of the Customs Act, 1962. The Court examined whether there was an…

The Central Government issued a notification on 27 June 2006 banning the export of pulses and a subsequent notification on 4 July 2006 permitting export against irrevocable letters of credit opened before 22 June 2006. Exporters who had already obtained Let‑Export orders and complied with Section 51 of the Customs Act …

M/S. Star Industries imports roasted molybdenum ore concentrate for ferro‑alloy production and claims exemption from customs counter‑vailing duty under Notification No. 4/2006‑CE, which exempts "ores". The Customs Department contended that the imported material is a concentrate, not an ore, and therefore not covered by…

Essar Oil Ltd. imported plant and machinery stored in a private bonded warehouse and, fearing a budgetary duty increase, issued a cheque on 25‑Feb‑1999 declaring sufficient funds despite knowing the funds were unavailable. The cheque was presented on 27‑Feb‑1999, returned unpaid, and only honoured on 17‑Mar‑1999 after …

The appellants, contractors for ONGC, carried out offshore oil operations and moved goods between ONGC's rigs and the shore without payment of customs duty under a customs exemption. After ONGC shifted operations to Nhava Base, the Customs Department issued show‑cause notices alleging unauthorized loading, unloading an…

The Assistant Collector of Central Excise appealed after a Special Judge acquitted Duncan Agro Industries Ltd. and its directors of offences under the Central Excise Act and IPC 120‑B. The acquittal was challenged on the ground that confessional statements recorded by customs officers under Section 108 of the Customs A…

The Supreme Court considered a writ petition challenging the detention of Shital Kumar under section 3(1) of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (COFEPOSA). The petition raised three main points: (i) whether the period of parole granted earlier should be counted towards…

M/s. Grand Prime Ltd. imported raw silk and other silk products into Kolkata using an advance licence that was later found to be forged and was subject to a condition of re‑export. The importer failed to comply with the re‑export condition, did not appear before customs, and did not file a bill of entry, prompting the …

The appellant, O.P. Bhatia, exported ladies' skirts and declared a value far above the domestic market price, subsequently claiming a large drawback. The Customs Commissioner found that the export value was deliberately over‑invoiced, treated the goods as prohibited, confiscated them and imposed a fine and penalty. The…

The appellant, M. Natarajan, was charged under IPC sections 120B, 420, 467 and 471, and the Prevention of Corruption Act for preparing fabricated documents that facilitated the customs clearance of an imported car under the Transfer of Residence scheme. He claimed that the Kar Vivad Samadhan Scheme (KVSS) 1998, which g…

M/s Kajaria Exports Ltd. and others imported 5,000 metric tonnes of white cement and sought clearance under the Open General Licence provision of Appendix 6 List 8 Part III Item 33 of the 1984-85 Import and Export Policy. The authorities denied clearance, issuing a show‑cause notice that white cement was a canalised it…

The appellants, a sugar manufacturer, imported capital goods and placed them under customs bond warehousing. Their bond periods expired in December 1996 and January 1997, and an application for extension was rejected. After the Export Promotion Capital Goods (EPCG) Scheme was extended to agro‑industries, the appellants…

The Automotive Tyre Manufacturers Association (ATMA) and its members imported Nylon Tyre Cord Fabric and sought relief from an anti‑dumping duty imposed on imports from China under the Customs Tariff Act, 1975. The Designated Authority (DA) investigated, issued provisional duty, and later, after a change of officer, re…

Mis Bombay Oil Industries Pvt. Ltd. imported bleachable mutton tallow in April 1978 and claimed a 30% customs duty exemption under Notification 141‑CUS/76, which required the tallow to meet a colour specification. The Customs House tested the tallow using the Indian Standards method (IS 548) and found the colour exceed…

The petitioners, a consortium of newspaper publishers, challenged the imposition of customs and auxiliary duties on imported newsprint under the Customs Act, 1962 and the Customs Tariff Act, 1975, arguing that the levy infringed their freedom of speech and expression (Art. 19(1)(a)) and the right to practice a professi…

The aircraft of British Airways unloaded cargo at Delhi airport. Customs authorities issued show‑cause notices alleging that some packages were short and imposed a penalty under Section 116 of the Customs Act. The carrier argued that it was not the ‘person in charge’ of the aircraft under Section 2(31) and therefore co…

The Customs officials seized foreign exchange worth Rs.13,27,212 being exported from India. During investigation, a co‑accused, Mr. Dudani, gave a statement to customs officers under Section 108 of the Customs Act, implicating both himself and the petitioner, Mr. Sukhawani, in the contravention. The Additional Collecto…

The Directorate of Revenue Intelligence alleged that M/s Ganpati Overseas under‑invoiced imported tuners and saw‑filters from Hong Kong, evading customs duty. The department relied on unattested photocopies of the supplier's initial export declarations and statements recorded under Section 108, which were later retract…

Baccarose Perfumes and Beauty Products Pvt. Ltd (the appellant) challenged the Special Judge's order taking cognizance of alleged offences relating to the payment of Countervailing Duty (CVD) on invoice value instead of Maximum Retail Price (MRP). The company claimed that it had been granted immunity from prosecution u…

British Machinery Supplies Co., a manufacturer of sewing machines, imported rotating hooks with bobbin cases intended for industrial sewing machines. The Assistant Collector of Customs levied a higher duty under heading 84.2 (domestic sewing machines) instead of the 40% duty under item 84.41(1) (not elsewhere specified…

Northern Corporation imported MSCR defective sheets in 1984 and stored them in a customs warehouse. The Income Tax Department imposed a ban under Section 132(1) of the Income Tax Act, 1961, preventing the goods from being cleared. After the ban was lifted in 1988, customs demanded payment of duty at the higher rate pre…

The Research Foundation for Science, Technology and Natural Resource Policy challenged the Ministry of Environment's permission to import hazardous wastes, seeking a total ban, amendment of the Hazardous Wastes (Management & Handling) Rules, 1989 to conform with the Basel Convention, and a declaration that the Rules vi…

Gammon India Ltd. and Atlanta Infrastructure Ltd. formed a joint venture (Gammon‑Atlanta JV) to bid for a National Highways Authority of India (NHAI) road contract, which was awarded to the JV. Gammon imported a concrete batching plant and claimed exemption from customs duty under Notification No. 17/2001 (Condition 38…

Chandna Impex Pvt. Ltd., an importer of plywood and related products, was alleged to have undervalued imported goods, leading to a show‑cause notice under Section 124 of the Customs Act, confiscation under Section 111, a demand under Section 28AB and a penalty under Section 114A. The appellant appealed the Tribunal’s d…

The appellants, Gopaldas Udhavdas Ahuja and his widow, were found to possess primary gold that had been seized by Income‑Tax authorities in August 1974 and subsequently taken over by a Gold Control Officer under the Gold (Control) Act, 1968. They claimed they were unaware of the gold hidden in a secret compartment and …

The appellants imported bulk cloves and claimed that the customs duty should be assessed on the contract price of US$2600 per metric ton, which they alleged was the transaction value. The Customs Department, relying on Section 14(1) of the Customs Act, 1962 and Rules 4, 5 and 10A of the Customs Valuation Rules, 1988, d…

The Union of India appealed against a Bombay High Court order that directed customs authorities not to reject a refund claim on the ground of limitation under Section 27 of the Customs Act, 1962. The respondent, Kirloskar Pneumatic Co. Ltd., had imported goods, paid duty, and later sought a refund, filing a writ petiti…

The case concerned an Ultra Mega Power Project where the seller (Sasan Power Ltd.) claimed compensation for increased costs of a water‑intake system and customs duty on mining equipment, alleging these were "change in law" events under Article 13 of the Power Purchase Agreement (PPA). The seller argued that the Appella…

Universal Ferro & Allied Chemicals Ltd. (UFAC), a 100% Export Oriented Unit, entered into an agreement with Tata Iron & Steel Co. (TISCO) to convert raw manganese ore supplied free of cost into silicon manganese for a fee. The Revenue argued that such job‑work was not permitted under the EXIM Policy and that, under the…

The respondents Yash Pal and others were convicted by a trial court for offences under Sections 8 and 21 of the Narcotic Drugs and Psychotropic Substances Act, 1985 based largely on their confessions to customs officials after a heroin seizure. The High Court acquitted them, holding that the prosecution had failed to p…

Gumman Mal was found to be in possession of 28 gold biscuits with foreign markings hidden in a secret chamber of his safe. He admitted that the gold was brought from outside the country by an unknown person and that he held no permit under the Reserve Bank of India or the Gold Control Administrator. He was convicted un…

The exporter, Ganesh PolytEx Ltd., alleged that Transport Corporation of India Ltd. failed to deliver four consignments of yarn fabric to Benapole Customs in Bangladesh, seeking compensation under the Consumer Protection Act. The National Consumer Disputes Redressal Commission ordered the transporter to pay the claimed…

The appellant Gurdev Singh challenged the detention of his son, Swarn Singh Sandhu, under Section 3(1) of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (COFEPOSA), alleging misuse of the Duty Entitlement Pass Book (DEPB) export incentive scheme and forging shipping bills. The det…

Motorola India imported raw materials under Notification No. 30/1997 which exempted such imports from customs duty provided they were used to manufacture pagers. The company ceased pager production, leaving a portion of the duty‑free material unused, and the Customs Commissioner levied duty, interest and penalty allegi…

The Cochin Port Trust sought to recover ground rent and demurrage for containers that remained unclaimed by consignees after customs clearance, arguing that the steamer agents should not be liable beyond the 75‑day limit set by the Tariff Authority. The Supreme Court examined whether the passage of title, endorsement o…

The Commissioner of Customs ordered duty and penalties on Mis. Gujarat Perstorp Electronics Ltd. for importing drawings, designs and plans (FEEP) under a technical know‑how agreement, classifying them as manuals rather than "books" and denying exemption under Chapter 49.06. CEGAT set aside the order, relying on a large…

The Collector of Customs appealed against the CEGAT order that had accepted the importer’s declared price for zip rolls as the transaction value despite the importer’s forged certificate of North Korean origin. The Supreme Court held that Rules 3 and 4 of the Customs Valuation Rules presume a genuine transaction value …

Jain Exports (P) Ltd. and its managing director imported two consignments of refined industrial coconut oil in September 1982. The Customs Collector issued show‑cause notices alleging that industrial coconut oil was a canalised item under Appendix 9 para 5 of the Import Policy 1980‑81 and ordered confiscation under sec…

The wife of a man detained under the COFEPOSA Act challenged his preventive detention, arguing that the detaining authority had not applied its mind and had ignored the stringent bail conditions imposed by the magistrate. The Supreme Court examined the factual matrix, which showed the detainee’s involvement in a large‑…

The appellant, M/s Alex Enterprises, had obtained customs duty drawback of Rs.42,90,226 on export consignments whose sale proceeds were never repatriated, thereby violating Section 142B of the Customs Act. The Customs authorities ordered recovery of the drawback amount along with a penalty of Rs.20,00,000 and directed …

M/s. Lohia Sheet Products imported copper/brass waste and scrap for making handicrafts and claimed exemption under Notification No.8/96‑CE (Entry 74.04) which provides a NIL rate of additional customs duty. The Customs authorities and the Tribunal rejected the claim, holding that the exemption applied only to waste gen…

The appellant, Reginamary Chellamani, was arrested for alleged offences under Sections 8(c), 20(b)(ii)(C), 22(c), 23, 28 and 29 of the NDPS Act read with Section 135 of the Customs Act, after a contraband substance exceeding the commercial quantity was seized from her. She had been in pre‑trial detention for 4 years, 1…

The respondent, a class‑I civil contractor, completed work on the Koyna Hydro Electric Project funded by the World Bank and claimed duty drawback as a "deemed export" under the Exim Policy 1992‑1997. After multiple rejections by the DGFT, a Policy Interpretation Committee in 2002 allowed the drawback, which was paid in…

M/s. Sanghvi Reconditioners Pvt. Ltd., a ship‑repair unit, was found to have imported engineering cargo as "ship spares" and then sold the goods to a third party, thereby fraudulently claiming exemption under Notification No.211/83. The Customs Commissioner demanded duty, penalty and interest; the appellant withdrew it…

Varsha Plastics Pvt. Ltd. imported a consignment of LDPE/HDPE granules from the United States and declared a low invoice price. The Customs Authority rejected the transaction value as unrealistically low, enhanced the valuation using prices from foreign journals as directed by Standing Order No. 7493/99, confiscated th…

Adani Power Ltd., operating a coal‑based power plant in the Mundra SEZ, challenged the levy of customs duty on electricity exported from its SEZ unit to the Domestic Tariff Area (DTA) under several notifications issued between 2010 and 2016. The Gujarat High Court, in a 2015 judgment, held that no lawful charging event…

The Anti‑Corruption Bureau raided Natwarlal Damodardas Soni's residence and seized 100 gold biscuits of foreign origin concealed in a jacket; the Customs authorities subsequently took possession. Soni, who was absent at the time, was later convicted under sections 135(a) and (b) of the Customs Act, 1962 and the Defence…

The importer M/s Seiko Brushware India brought pig‑hair bristles into India and sold them in 1998‑2000. The Delhi Sales Tax Act, 1975, Section 7 lists pig‑hair bristles as tax‑free goods, meaning no sales tax is payable on their sale. The Commissioner of Customs denied the benefit of Exemption Notification No. 34/98‑Cu…

M/s. Swastika Enterprises imported an old vessel and, despite claiming exemption, was assessed additional customs duty of Rs. 1,52,20,000 through an endorsement on the Bill of Entry. The appellants challenged the demand by filing a writ petition, and while the Kar Vivad Samadhan Scheme was introduced during the pendenc…

M/s. Jaswal Neco Ltd., a pig‑iron manufacturer, imported low‑ash metallurgical coke between June and August 1998 under export‑obligation exemptions. It failed to fulfill the export condition and was assessed a demand of Rs 7.21 crore comprising basic customs duty, special customs duty, special additional duty, and anti…

The Directorate of Revenue Intelligence seized about 1,913 kg of silver from the appellants, issuing a show‑cause notice which was later discharged by the adjudicating authority. The Customs, Excise & Gold (Control) Appellate Tribunal ordered confiscation of the entire seized silver, directing confiscation of 194.250 k…

The respondents imported fourteen consignments of Butyl Acrylate Monomer (BAM) and cleared them duty‑free as "adhesives" under advance licences issued under the DEEC scheme. The Commissioner of Customs held that BAM was not an adhesive, invoked the extended period of limitation and demanded customs duty. The Customs, E…

The petitioner, an NRI, was arrested at Delhi airport for allegedly smuggling watches through the green channel. He sought a direction for home‑cooked food and, more importantly, the right to settle the customs duty liability under Section 127B of the Customs Act, arguing that Section 123, which bars settlement for cer…

The appellant, Indian Textile Paper Tube Co. Ltd., imported goods that were initially classified under a higher duty heading and later obtained a refund order after the Appellate Collector re‑classified them under a lower duty heading. The Central Government, exercising suo motu power under Section 131(3) of the Custom…

M.S. Shoes East Ltd imported a 1993 Rolls Royce car in 1996 and filed a Bill of Entry on 31 August 1996, but customs clearance was only granted in March 2005. The dispute centered on whether the assessable value for customs duty should reflect the car's price at the time of import or be reduced to account for depreciat…

The Commissioner of Customs, Mumbai initiated recovery proceedings against Mis. Virgo Steels and Associated Cement Company Ltd for duty‑free steel imported after the cement project was abandoned, in violation of the Deemed Export Scheme. Virgo Steels admitted the illegality in a letter, expressly waived its right to a …

Grasim Industries imported 14,700 Karbate Tubes, artificial graphite components of heat exchangers, and sought classification under Chapter 84 (sub‑heading 8419.50) of the Customs Tariff Act, 1975. The Revenue argued that Note I(a) of Chapter 84 expressly excludes such items as "other articles of Chapter 68" and theref…

Rexnord Electronics & Control Ltd. obtained two Export Promotion Capital Goods licences requiring export of specified values within five years and furnished a bond undertaking to pay interest on any duty shortfall. The company failed to meet its export obligations, leading to demand notices for customs duty plus 15% in…

The respondents, M/s Orient Enterprises, imported skimmed milk powder which the Customs Collector deemed undervalued and ordered confiscation, allowing redemption on payment of a fine, penalty and additional duty. The revenue’s appeal against the Tribunal’s order that the goods were lawfully imported was dismissed, and…

The State of Maharashtra charged three men with attempting to smuggle 43 silver ingots out of India, violating the Foreign Exchange Regulation Act, the Imports and Exports (Control) Act and the Customs Act. The accused, who were the driver of a jeep, the driver of a truck and a cleaner, argued that they were unaware of…

The Union of India appealed against the Bombay High Court’s order dismissing Solar Pesticides Pvt. Ltd.’s claim for refund of additional customs duty paid on imported copper scrap used as raw material for copper oxychloride. The issue was whether the doctrine of unjust enrichment applies when imported raw material is c…

Mirah Exports Pvt. Ltd. and other importers brought ball bearings from SKF at discounts of 50‑70% to the published price list. The Customs authorities issued show‑cause notices alleging undervaluation and relied on the 1981‑82 price list, contending that discounts above 20% were not admissible under Section 14 of the C…

In the civil appeal filed by M/s. Weston Components Ltd. against the Commissioner of Customs, New Delhi, the appellant challenged the imposition of a redemption fine after its imported goods had been released on the execution of a bond. The goods were released to the appellant following an application and bond executio…

Saikou Jabi, a Gambian national, was intercepted at Bombay airport with approximately 1 kg of heroin concealed in a suitcase. The baggage was screened on an X‑ray machine and the contraband was recovered from the suitcase, not from a personal search of Jabi. He was charged under Sections 21, 23, 28 and 29 of the NDPS A…

The respondents, manufacturers of textile fabrics, were found to have cleared goods without paying excise duty and were served a show‑cause notice on 6 January 1999. They sought relief under the Kar Vivad Samadhan Scheme, 1998, which allowed settlement of tax arrears quantified or notified on or before 31 March 1998, b…

The Union of India challenged the validity of the Goods and Services Tax (Compensation to States) Act, 2017 and the accompanying Compensation Cess Rules, arguing that Parliament lacked legislative competence to levy a compensation cess and that the levy amounted to double taxation on the same taxable event. Mohit Miner…

The Union of India initiated customs proceedings against Padam Narain Agarwal and others for alleged export fraud, issuing summons under Section 108 of the Customs Act to record their statements. The respondents, refusing to cooperate, were later charged with offences under Sections 174 and 175 of the IPC, and they app…