Customs Act, 1962

The case arose from allegations of irregularities in the grant of an advance licence for import of cotton fabrics, leading to a criminal complaint against a company, its directors and four public servants under the IPC, Prevention of Corruption Act and Customs Act. The company and its directors filed a declaration unde…

M/S. MSCO Pvt. Ltd. imported stainless‑steel plates under a 1977 customs notification that granted a concessional duty provided the goods were used to manufacture specified articles and the finished articles were sold only to "industrial units". The company supplied certificates that the plates were used accordingly, b…

Liberty India, a partnership firm operating a small‑scale industrial undertaking, claimed a deduction under s.80‑18 of the Income‑Tax Act for profits arising from Duty Entitlement Passbook (DEP8) and duty‑drawback credits that were posted to its profit and loss account. The Assessing Officer rejected the claim, holding…

M/s Prodelin India (P) Ltd., a joint‑venture Indian company 75% owned by a U.S. firm, assembled VSAT antennas using components supplied by the foreign partner and paid a monthly technical service fee for post‑import activities such as training and design assistance. The Deputy Commissioner of Customs added 10% of the i…

Mohd. Akhtar Hussain was first convicted under the Gold (Control) Act, 1968 for possession of 7,000 tolas of foreign‑marked gold and sentenced to seven years' rigorous imprisonment with a fine. While serving that sentence, he was later convicted under the Customs Act, 1962 for smuggling gold worth Rs.12.5 crore and exp…

The assessees, Pennar Industries Ltd., imported hot‑rolled non‑alloy steel raw material duty‑free under Notification No. 30/1997 of the DEEC scheme, subject to an export obligation. They did not export the finished goods themselves but arranged third‑party exports after the DGFT amended the licence to permit such expor…

Mis. Polygas Acrylic Mfg. Co. Ltd. imported Methyl Methacrylate Monomer (MMM) described in the invoice as "regenerated second grade". The Customs Department rejected this description, issued a show‑cause notice alleging misdeclaration and claimed the goods were of prime quality, leading to provisional clearance on a lo…

The Collector of Customs imposed a penalty on M/s Elephant Oil and Industries Ltd. for importing beef tallow, which was deemed a canalised item under the Import Policy. The importer argued that the Open General Licence (OGL) permitted the import and that the penalty was unwarranted after the goods were ordered to be re…

The Directorate of Enforcement arrested Deepak Mahajan under Section 35 of the Foreign Exchange Regulation Act (FERA) and produced him before a magistrate, who ordered his judicial remand under Section 167(2) of the Criminal Procedure Code (CrPC). Mahajan challenged the magistrate's jurisdiction, relying on the earlier…

M. Ahamedkuti was intercepted for smuggling gold and was granted bail on 12‑Feb‑1988. The Kerala Home Secretary later issued a detention order under COFEPOSA on 25‑Jun‑1988, which was executed on 2‑Aug‑1988. The appellant challenged the order on grounds of unexplained delays in passing and executing the order and, cruc…

The appellant, a customs house agent, was involved in the clearance of a seized container of electronic goods and later faced suspension of its licence, which was restored by the Tribunal. The Commissioner of Customs filed an application under Section 1290(4) of the Customs Act, 1962, but delayed it by ten days and sou…

The Supreme Court examined whether offences under the Central Excise Act, 1944 and the Customs Act, 1962 are non‑cognizable and, if so, whether they are bailable. It held that Section 9A of the Excise Act and Section 104(4) of the Customs Act expressly deem the offences non‑cognizable, and that the statutes themselves,…

Parasrampuria Synthetic Ltd imported a large number of printed drawings, designs and plans under a foreign technology‑transfer agreement for setting up a polyester plant. The importer claimed that the items fell within Serial No. 10 of Customs Notification No. 25/95 (dated 16‑03‑1995), which provides a nil rate of duty…

Phoenix International Ltd, a footwear exporter, obtained a Value Based Advance Licence (VBAL) permitting duty‑free import of "printed PVC" (PVC leather cloth) under Notification No. 79/95‑Cus, Section 25(1) of the Customs Act. The customs officer classified the imported sheets as "shoe uppers" (heading 6406.10) because…

The case involved six accused persons charged under the Customs Act for allegedly exporting sandalwood and tiles clandestinely. The trial courts in two separate proceedings acquitted all accused, but the Madras High Court convicted them in a common judgment, relying on evidence from only one of the trials. The Supreme …

The respondent, a proprietorship importing assorted consumer goods, mis‑declared the country of origin, quantity and value of the consignment, leading to seizure of the goods. The Commissioner of Customs rejected the invoice value under Section 14(1) of the Customs Act and determined the assessable value using Rules 6A…

The Court examined whether cinder, the unburnt portion of coal left after its use as fuel in factories, is liable to excise duty under Entry 26.21 of the Central Excise Tariff Act, 1985. It held that cinder is not a product of manufacture because coal is used only as fuel and no transformation creates a new substance; …

ISPAT Industries Ltd imported iron ore pellets that were off‑loaded from the mother vessel at Bombay Floating Light (BFL) onto barges and taken to Dharamtar jetty. The Customs authorities added the barge transportation charges to the assessable value under Section 14 of the Customs Act, 1962, invoking Rule 9(2) of the …

Garden Silk Mills Ltd. and other importers brought several appeals challenging the Customs Department’s addition of landing charges to the CIF price of polyester yarn imported under CIF contracts for the purpose of determining assessable value under Section 14(1)(a) of the Customs Act, 1962. The appellants argued that …

Mis Moorco (India) Ltd., a manufacturer of volumetric displacement type flow meters, imported components and accessories for use in its meters. The Assistant Collector classified the accessories under tariff heading 90.26, a general heading, relying on clause (c) of Rule 3 of the General Rules for Interpretation of the…

The Union of India challenged the validity of Notification Nos.102/87‑CE and 103/87‑CE which granted exemption from excise duty on iron and steel scrap from ship‑breaking only to importers who had paid customs duty at Rs.1,400 per Light Displacement Tonnage (LDT). The respondent, N.S. Rathnam & Sons, had paid a lower c…

The Commissioner of Customs appealed against the CESTAT order that had allowed M/s Aryan Electronics to overturn the valuation of imported VCD lens parts. The importer had declared a transaction value of Rs.36 per piece, which the Commissioner rejected and, applying Rule 6 of the Customs Valuation Rules, 1988, fixed th…

The Commissioner of Customs (Import) issued a show‑cause notice to M/s Hico Enterprises demanding recovery of duty on the basis of alleged contravention of conditions of Notification No. 203/92‑Cus relating to a Transferable Value Based Advance Licence (VABAL) that the appellant had purchased from the original licence …

Mihir Textiles Ltd. and another importer sought refund of customs duty on the basis that they were eligible for the 40% concessional rate under Entry 84.66 of the Customs Tariff Act, 1975. Both had cleared their goods after paying full duty and later applied for registration of the import contract as a "project import"…

Mis Clariant (India) Ltd, a manufacturer of leather chemical products, entered into a Technical Collaboration Agreement with Sandoz Quinn for the import of raw material. The Customs Department demanded that a technical know‑how fee of Rs 5,00,000 be added to the assessable value of the raw material under Customs Valuat…

Essar Steel Ltd imported goods under the Project Imports Regulations, 1986 and paid duty based on a declared assessable value of DM 46.75 million. The Customs Department increased the assessable value to DM 84.15 million, leading the importer to pay an additional Rs 6.02 crore under protest. The Customs Tribunal ordere…

Zuari Industries Ltd, a fertilizer manufacturer, sought to import a 6 MW captive power plant as part of a substantial expansion of its NPK plant under Project Import Regulations. The Ministry of Chemicals & Fertilisers issued an Essentiality Certificate stating that the power plant was essential for the fertilizer proj…

The Supreme Court considered two appeals where vehicles carrying essential commodities were seized under the Essential Commodities Act, 1955. The Deputy Commissioner ordered the release of the vehicles on payment of a fine based on the market price of the vehicles, which the High Court struck down, holding that the fin…

The case concerned the customs duty exemption for magnetic tapes (IT software) imported by ONGC and Tullow India Operations Ltd. for seismic surveys under petroleum exploration contracts. The exemption notification required the importer to produce an essentiality certificate from the Directorate General of Hydrocarbons…

The petitioners, including Living Media India Ltd., challenged Notification No. 49/89 Customs which imposed a 30% ad valorem duty on glazed newsprint imported for news magazines between 1 March 1989 and 24 January 1990. The Union later offered to levy only 15% and to refund any excess, subject to the Customs Act. The p…

The Assistant Collector of Customs intercepted a fishing vessel carrying 194 ingots of silver, suspecting smuggling. The accused were convicted under several statutes, including section 135(1)(a)(ii) of the Customs Act, 1962. The Bombay High Court set aside the conviction under the Customs Act, holding that the phrase …

The case concerned the validity of the "pre‑import condition" introduced by the 2017 amendments to the Foreign Trade Policy 2015‑2020 and related customs notifications, which required exporters to pay IGST and compensation cess on inputs imported under an Advance Authorization (AA) and to satisfy a physical export requ…

The appellants imported oil from the UAE and declared it as Base Oil SN 50, but the Directorate of Revenue Intelligence re‑classified it as High Speed Diesel (HSD) and seized it. The Adjudicating Authority, CESTAT and the High Court each held the oil to be HSD, relying on three laboratory reports that tested only a por…

Chandra Sekhar Jha was intercepted in 2013 while smuggling gold and was penalised Rs 75 lakhs. He appealed the penalty before the Customs, Excise and Service Tax Appellate Tribunal in 2017, but the Tribunal dismissed the appeal because he had not made the pre‑deposit required under Section 129E of the Customs Act. The …

The appellant purchased 78 consignments of zinc and copper that had been stored at the Port of Bombay after the original consignees failed to lift them. The Board of Trustees of the Port of Bombay levied demurrage charges of Rs.2,81,67,333 and granted only partial remission, which the appellant challenged. The Supreme …

The Assistant Collector of Customs appealed against Anam Electrical Manufacturing Co. challenging the levy of a ten‑percent surcharge and the handling of a refund claim under the Central Excise Act, 1944 and the Customs Act, 1962. The Supreme Court examined whether the surcharge could be upheld and, more importantly, w…

M/s GMR Energy Ltd. imported hot‑section turbine parts under a Long‑Term Assured Parts Supply Agreement (LTAPSA) with GE USA, re‑exporting the used parts and paying customs duty on the invoice value. The Customs Commissioner, relying on Rules 4 and 9 of the Customs Valuation Rules, added one‑third of the invoice value,…

Cargill India Pvt Ltd exported soyabean meal and filed free shipping bills without claiming duty drawback. It later applied to convert those bills into drawback shipping bills under Rule 12(1)(a) of the Customs, Central Excise Duties and Service Tax Drawback Rules, 1995, invoking Circular No 04/2004 which the Commissio…

The case concerned the validity of several amendments to the Export-Import (EXIM) Policy 2002-2007 made by Notification No. 28 (Jan 28, 2004) and subsequent public notices and notifications (Jan 28 2004 Public Notice, Apr 21 & 23 2004 Notifications). Exporters alleged that these changes were retrospective, ultra vires,…

IndusInd Media & Communications Ltd imported a set of equipment for a cable TV "Head End" and declared the items individually under various tariff headings. The Customs Department alleged that the declaration was false, the goods were undervalued, and that software and related services, which were embedded in the equip…

The Central Excise Commissioners issued show‑cause notices to Apollo Tyres Ltd. and its directors/officers for alleged duty evasion and imposed penalties. Both the company and the officers appealed before the Customs, Excise and Gold (Control) Appellate Tribunal, and while the appeals were pending, the Kar Vivad Samadh…

The case concerned the liability for demurrage and detention charges on ten consignments of cold‑rolled coils imported by M/s Imler International and M/s Shri Lakshmi Steels. The goods were detained by the Directorate of Revenue Intelligence (DRI) and Customs on suspicion of mis‑declaration, leading the Mumbai Port Tru…

The appellants, customs officers, were accused of dishonest misappropriation of goods they had seized and were holding in trust. The Sub‑Divisional Magistrate found a prima facie case under Sections 120B and 409 IPC and summoned the appellants, who sought discharge on the ground that prosecution required prior sanction…

The Steel Authority of India Ltd. (SAIL) imported plant equipment under two contracts that also included fees for basic design, engineering, and foreign supervision. The customs authorities added these fees to the assessable value of the equipment under Rule 9(1)(e) of the Customs Valuation Rules, 1988, treating the co…

The appellant, Pooja Batra, filed a writ petition seeking the release of her husband, Deepak Kumar (Deepak Batra), who had been detained under Section 3 of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (COFEPOSA). The Detaining Authority based the detention on alleged mis‑declara…

The petitioners challenged the constitutional validity of the amendments to the Customs Act, 1962 and the arrest provisions in the Central Goods and Services Tax Act, 2017, arguing that offences under these statutes remain non‑cognizable and that authorized officers must obtain a magistrate's warrant, relying on the Om…

The appellant Department of Customs appealed against the discharge of Sharad Gandhi, who was accused of attempting to export a sand‑stone Buddha head classified as an antiquity. The prosecution relied on Sections 132 and 135(1)(a) of the Customs Act, 1962 for false declaration and fraudulent evasion of a prohibition. T…

The appellant, Rabindra Chandra Paul, imported two consignments of refined soybean oil from Bangladesh at a C&F price of Rs 24.50 per kg. The Customs Department, doubting the declared value, asked for a cost break‑up and later invoked Rule 7A of the Customs Valuation Rules, 1988, rejecting the raw‑material cost but acc…

Madan Lal Anand and two others were detained under section 3(1) of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (COFEPOSA) on allegations that they used benami firms to obtain duty‑exempt advance licences, imported polyester yarn, failed to export the goods as required and sold …

The Collector of Customs appealed against the Customs, Excise and Gold Appellate Tribunal's order that upheld the respondents' claim for refund of auxiliary duty on timber imported from Burma. The respondents argued that, because timber from Burma was fully exempted under Notification No. 265/1982 and its successors, o…

The Collector of Customs appealed against a Customs Tribunal order that had allowed Western India Plywood Mfg. Co. Ltd. to obtain a refund of auxiliary duty paid on timber imports from Burma. Under the Customs Tariff Act, 1975 timber attracted a basic duty of 60%, but a notification under Section 25 of the Customs Act …

The case concerned the customs tariff classification of a signal decoder used by a cable operator to decode satellite signals received via a dish antenna. The Revenue (Commissioner of Customs) argued that the decoder should be classified under Entry 8528 of the Customs Tariff Act, 1975 as a "reception apparatus for tel…

The liquidator of ABG Shipyard sought release of goods stored in customs bonded warehouses without payment of customs duty, invoking the moratorium under the Insolvency and Bankruptcy Code (IBC). The Central Board of Indirect Taxes and Customs (CBIC) issued demand notices and sought to sell the goods under the Customs …

The Union of India amended the import policy for peas and other pulses, shifting them from a free to a restricted category and imposing quantitative import limits through notifications and a trade notice issued under the Foreign Trade (Development and Regulation) Act, 1992 (FTDR Act). Importers challenged the validity …

Modi Rubber Ltd. imported polypropylene liner fabric (PPLF) for use as a protective liner in tyre‑manufacturing machinery and argued that it should be classified as a component part of the machines under ICT Item 72(3), attracting a lower duty. The Customs Department classified the fabric under Item 53 as a textile man…

Pernod Ricard India (P) Ltd., a spirit manufacturer, imported Concentrate of Alcoholic Beverages (CAB) and was issued two show‑cause notices demanding differential customs duty. After several rounds of adjudication and remand, the Customs Commissioner applied Rule 6 of the 1988 Customs Valuation Rules to determine valu…

The respondents sought to import a stuffed leopard trophy, a species listed in Appendix I of CITES and Schedule I of the Wildlife (Protection) Act, 1972. They obtained a conditional licence from the DGFT and clearance from the Chief Wildlife Warden, both of which were expressly subject to CITES approval. CITES issued a…

The respondent, a railway passenger, was found wearing a waist‑chain of 820 g that was pure gold coated with mercury to appear silver. A customs officer seized the chain and the respondent was charged under the Gold (Control) Act, 1968 and the Customs Act, 1962. The trial court acquitted him, holding the chain was mere…

Alpesh Na Vinchandra Shah and his brother were arrested for mis‑declaring import consignments and evading customs duty. Both were detained under section 3(1) of the COFEPOSA Act. They later applied for settlement under section 1278 of the Customs Act; the Settlement Commission accepted full duty payment, granted immuni…

The Supreme Court examined whether it could compel Parliament to enact a law disqualifying candidates against whom serious criminal charges have been framed and whether it could direct the Election Commission to deny such candidates the use of a party's reserved symbol. The Court held that disqualification is a matter …

The Madras Bar Association challenged the constitutional validity of the National Tax Tribunal Act, 2005, which sought to transfer appellate jurisdiction from High Courts to a newly created National Tax Tribunal (NTT) for deciding substantial questions of law in tax matters. The Supreme Court held that while Parliament…

The Minerals and Metals Trading Corporation of India Ltd., acting as a canalising agent, placed a purchase order with a foreign exporter for tin mill black plate coils on behalf of the Steel Authority of India Ltd. (SAIL). The coils were shipped on the high seas and the bill of lading was endorsed in favour of SAIL bef…

K. Mohan & Co. imported metallised polyester film rolls from Japan and paid customs duty and countervailing duty under section 3 of the Customs Tariff Act. The firm claimed a refund on the basis of notification No. 228/76 issued under section 25(1) of the Customs Act, which exempts "articles made of plastics" except th…

Bharat Heavy Electricals Ltd (BHEL) imported pressure gauges for steam turbines and paid basic customs duty of 40% under heading 90.24 and an auxiliary duty of 5%. BHEL claimed a refund of the auxiliary duty, invoking Notification No. 35/79 (exemption for parts of articles falling under heading 84.04/05) and Notificati…

The dispute concerned whether Adani Power Ltd. was entitled to an adjustment in its monthly tariff payments – including carrying costs – after the Ministry of Commerce and Industry withdrew SEZ duty and service‑tax exemptions in 2015‑16. The parties relied on Article 13 of their Power Purchase Agreements, which provide…

The respondents, Anil Chanana and another, were intercepted at Delhi airport with two pairs of diamond earrings and $1,900, leading to their arrest for false declaration and evasion of customs duty under the Customs Act, 1962. They applied for compounding of the offences under Sections 132 and 135(1)(a) and for settlem…

The appellants, Indian public corporations engaged in manufacturing, imported technical drawings, designs and manuals from foreign collaborators on media such as paper and diskettes under technical collaboration agreements. The Customs Commissioner issued show‑cause notices under Section 28(1) of the Customs Act allegi…

The insured, M/s. Mudit Roadways, held fire and customs duty insurance policies with New India Assurance Co. Ltd. for a bonded warehouse in Raigad, Maharashtra. A fire broke out on 14 March 2018; the insurer repudiated the claim, alleging that the fire occurred in an uninsured area and resulted from the insured's negli…

Nestle India Ltd, a 100% export‑oriented undertaking (EOU), manufactured instant tea wholly from indigenous raw materials and cleared it to two sister units under Notification 8/97‑CE and Notification 23/2003‑CE. The Commissioner issued a show‑cause notice asserting that, because the tea was captively consumed and not …

NCC Blue Water Products Ltd., a 100% export‑oriented unit, manufactured shrimp and shrimp seeds and sold them in the domestic tariff area (OTA) without the removal authorization of the Development Commissioner, contrary to the Exim Policy. The revenue issued a notice demanding excise duty under the proviso to Section 3…

M/S Colgate Palmolive (India) Ltd imported dentifrice products from Nepal and claimed exemption from customs duties under Notification No. 37/96 issued pursuant to the India‑Nepal Treaty of Trade. After the introduction of Section 3A of the Customs Tariff Act in 1998, a Special Additional Duty (SAD) was levied on the i…

MIS O.N.G.C. Ltd imported 3‑D seismic tapes and claimed exemption from customs duty under the 1999 notification, which required an Essentiality Certificate (EC) issued by the Directorate General of Hydrocarbons and a valid Petroleum Exploration Licence (PEL). The original licence expired on 14‑Nov‑1997; ONGC applied fo…

Sharp Business Machines Pvt. Ltd., a small‑scale copier manufacturer, imported copiers in SKD/CKD form and declared a total value of Rs 99,612. The Collector of Customs, relying on quotations submitted with the licence application, valued the goods at Rs 7,15,485, held that the company had misdeclared the value and the…

The Commissioner of Customs, Kolkata, rejected a claim for Duty Entitlement Pass Book (DEPB) credit made by Peerless Consultancy Services Pvt. Ltd. on the ground that the steel balls exported were grossly over‑invoiced and the declared Present Market Value (PMV) was inflated. The Commissioner issued a show‑cause notice…

The case concerned appeals by the Commissioner of Customs against the confiscation of a consignment of readymade garments exported by Mis Brooks International for duty drawback. The revenue authorities seized the goods, invoking Sections 113(c) and (d) of the Customs Act, 1962, alleging that the market value of the goo…

M/s Container Corporation of India Ltd. (CONCOR) claimed a deduction under Section 80‑IA of the Income Tax Act, 1961 for profits earned from its Inland Container Depots (ICDs) for assessment years 2003‑04 to 2005‑06. The Assessing Officer rejected the claim, the Tribunal allowed deduction only for rolling stock and not…

HCL Technologies Ltd. claimed deductions under Section 10A of the Income Tax Act, 1961 for freight, telecommunication, insurance and software development expenses incurred in exporting software and providing technical services abroad. The Assessing Officer excluded these expenses from the total turnover, leading to a h…

Fortis Hospital Ltd., the successor of Wockhardt Hospital & Heart Institute, imported medical equipment under a duty exemption notification but later breached the post‑import conditions. The Customs Department issued a show‑cause notice under Section 124 of the Customs Act, confiscated the equipment and offered redempt…

The appellant imported second‑hand photocopier machines in January 2005 under the "general imports" category of the Foreign Trade Policy (FTP) 2004‑09. The Customs authority treated the machines as "restricted" under para 2.17 of the FTP, relying on DGFT circulars and seized them. The Supreme Court held that the machin…

The respondents imported Tape Deck Mechanisms (TDMs) from Yamato at a declared price of S$250 per set, whereas earlier orders with Mohan Impex were at S$343.45 per set. The Directorate of Revenue Intelligence seized the goods and the Collector of Customs found deliberate under‑invoicing, mis‑declaration of value and ev…

The Collector of Central Excise, Madras filed statutory appeals against orders of the Customs, Excise and Gold Control Appellate Tribunal and sought condonation of delay for those appeals. A Single Judge of the Supreme Court dismissed the condonation applications under Order VI Rule 2(14) of the Supreme Court Rules, 19…

Spaco Carburetiors (India) Ltd imported a special purpose complex machine used to plug holes in carburetor bodies with lead shots. The Revenue classified it under entry 84.59 of the Customs Tariff (residuary entry) attracting 60% duty, while the importer argued it fell under entry 84.45/48 (machine tools) attracting 40…

The appellant Vijay Kumar was detained under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (COFEPOSA) after the Directorate of Revenue Intelligence seized smuggled gold biscuits linked to him. He was already in custody on a charge under section 135 of the Customs Act when the det…

The Supreme Court examined the constitutional validity of Section 45(1) of the Prevention of Money Laundering Act, 2002, which imposes two additional conditions for granting bail when the offence involves a scheduled offence punishable with imprisonment of more than three years under Part A of the Schedule. The Court h…

Sun Export Corporation (appellant No. 1) and its partner imported stainless‑steel tubes in 1973‑74 under licences held by Laxmi Engineering Co. They were authorised by letters of authority to clear the goods from the Bombay Port Trust warehouses, but failed to do so. The goods were subsequently confiscated by the Custo…

M/s Munjal Showa Ltd imported goods and claimed exemption from customs duty under DEPB licences that were later discovered to be forged. Upon being notified of the forgery, the company paid the duty under protest, but the Customs Department issued a show‑cause notice demanding duty, interest and penalty. The Tribunal c…

The Supreme Court considered whether Notification 5/2019, issued under Section 8A of the Customs Tariff Act to raise the import duty on goods from Pakistan to 200%, applied retrospectively to bills of entry that had been presented and self‑assessed before the notification was uploaded to the e‑gazette at 20:46:58 on 16…

Sony India Ltd. imported various components of colour televisions (CTV) under a duty‑free exemption notification. The Revenue issued a show‑cause notice alleging that Sony had evaded customs duty by misdeclaring completely knocked‑down (CKD) kits as mere components, thereby breaching the Exim Policy 1992‑97 and invokin…

Kesoram Rayon imported 832 bales of rayon grade wood pulp and warehoused them in its private bonded warehouse on 16 June 1984 for a permitted period of three months under s.61(1)(b) of the Customs Act. The permitted period expired on 15 September 1984, but the goods remained in the warehouse without an extension. A dem…

The appellant, Navayuga Engineering, had imported hydraulic piling rigs under an exemption notification but later violated the conditions, leading to confiscation proceedings under Section 124 of the Customs Act. The appellant paid a fine under Section 125 to redeem the goods and contested the liability to also pay cus…

M.P. Steel Corporation imported a vessel and disputed the customs duty assessed on its light displacement tonnage. After paying duty, the corporation appealed the Collector's order before the Customs, Excise and Gold (Control) Appellate Tribunal (CEGAT), which allowed the appeal, but the Supreme Court later set aside C…

A Panama‑registered vessel carrying Ukrainian crew entered Indian territorial waters without authorization and was arrested by the Coast Guard. The Customs Department seized the cargo and later confiscated the vessel under the Customs Act, 1962. The chief officer and other crew members filed applications seeking paymen…

Rishiroop Polymers imported Acrylonitrile‑Butadiene Rubber (NBR) from Germany and Korea. The Designated Authority, under the Customs Tariff Act, found that such imports caused material injury to the domestic industry and imposed an anti‑dumping duty. The Customs, Excise and Gold (Control) Appellate Tribunal later conve…

Share Medical Care, a charitable hospital society, imported medical equipment in 1992‑93 and obtained customs duty exemption under paragraph 2 of Notification No. 64/88. The society later applied for exemption under paragraph 3, claiming eligibility as a non‑profit rural institution, but the Deputy Director General (Me…

M/s Granules India Ltd imported 96 tonnes of acetic anhydride in 1993 under an advance licence issued before 19 May 1992 and claimed exemption from customs duty under Notifications 203/1992 and 204/1992. The exemption was withdrawn by Notification 183/1993 dated 25 November 1993, but a clarificatory Notification 105/19…

The Directorate of Revenue Intelligence intercepted eight kilograms of foreign gold allegedly smuggled by the Jalan brothers, who were arrested and placed in judicial custody. While they remained in custody, the Detaining Authority under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1…

Xerox India Ltd. imported three multi‑functional machines that combine printing, scanning, copying and fax functions and sought classification under heading 8471.60 of the Customs Tariff Act, 1985. The Deputy Commissioner and subsequent authorities classified the machines under the residual heading 8479.89, prompting a…

M/s. U.K. Enterprises imported integrated circuits from Hong Kong and the Customs authorities deemed the declared value to be severely undervalued, fixing a transaction value of Rs.23.4 lakh and demanding differential duty of Rs.4.91 lakh. The Commissioner imposed a penalty of Rs.50,000 under Section 114A and a redempt…

M/S Chaudhary Ship Breakers imported an old vessel under a Memorandum of Agreement (MOA) at a price of US$992,887.20. After inspection revealed corrosion, the parties executed an addendum reducing the price to US$929,388.60, which was reflected in the bill of entry. The Deputy Commissioner later assessed customs duty b…

The State of Maharashtra detained Jayendra Vishnu Thakur under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (COFEPOSA) on 5 February 1992 based on customs statements that silver smuggled from Dubai was intended for him. The detention order was served only on 13 August 1993, afte…

Amin Merchant imported eight consignments of goods classified under Customs Tariff sub‑heading 2208.10 and paid duty at the rate of Rs 300 per litre or 400% whichever was higher, as prescribed in the Finance Act. He contended that the Finance Minister’s budget proposals for 1993‑94 and 1994‑95 required a lower duty (85…

The respondents imported goods that were exempt from basic customs duty under a notification issued under Section 25(1) of the Customs Act when the goods entered Indian territorial waters and were stored in a bonded warehouse. When the goods were later removed from the warehouse, the exemption was withdrawn and the res…

The petitioners, partners of a diamond trading firm, were found by Customs officers to possess over 3,200 carats of diamonds and other valuables after a search based on secret information. The officers seized the goods under Section 110 of the Customs Act, 1962, asserting a reasonable belief that the diamonds were smug…

The appellant, a regular importer of electric decorative lighting (M/s. Diyas Mantra Lighting Private Ltd. and its directors), was issued a show‑cause notice under s.28 of the Customs Act, 1962 alleging non‑declaration of brand names and undervaluation of imports from a related party in the UK. The assessing authority …

The Union of India detained B. Sankar under Section 3 of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (COFEPOSA) for alleged hawala transactions involving Rs. 42.9 lakh. The Karnataka High Court set aside the detention, holding that the underlying offence under the repealed Fore…

The petitioner, Poonam Lata, filed a writ petition under Article 32 seeking habeas corpus for her husband Shital Kumar, who had been detained under section 3(1) of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (COFEPOSA) on 28‑Feb‑1986. After a rejected representation and confirm…

The importer M/s. Ganesh Das Bhojraj claimed exemption from customs duty on green beans under Notification No.129/76-Cus, but the Central Government amended the exemption by Notification No.40/87-Cus, imposing a 25% duty. The importer contended that the 1987 notification, although published in the Gazette of India, was…

Bussa Overseas & Properties Ltd. sought a refund of excess provisional customs duty under Section 18(2) of the Customs Act, 1962. The customs authority directed the claim to be made under Section 27(2) and the appellants contested this, filing a writ petition. The High Court dismissed the writ and, on review, rejected …

M/s Uniworth Textiles Ltd., an export‑oriented unit, imported furnace oil on behalf of its sister concern and claimed exemption under Notification No. 53/97‑Cus. The Customs Commissioner issued a show‑cause notice demanding duty and penalty more than six months after the import, invoking the proviso to Section 28 of th…

The case concerned import of Styrene‑Butadiene Rubber (SBR) of the 1900 series, which the importer M/s Ballarpur Industries Ltd. declared as ‘Lutex‑701’ and ‘Lutex‑780’ in its Bills of Entry. The Commissioner of Customs issued show‑cause notices alleging mis‑declaration and demanding confiscation, anti‑dumping duty, in…

The appellants, husband and brother of the petitioner, were detained under Section 3(1) of the Conservation of Foreign Exchange and Prevention of Smuggling Activities (COFEPOSA) Act on the grounds of alleged misdeclaration of an export consignment (claimed as alloy steel forging but allegedly metal scrap) and over‑invo…

The appellants, manufacturers of edible oils, challenged two Central Government notifications that prohibited the import of crude palm oil through Kerala ports, arguing that the notifications were ultra vires the Foreign Trade (Development and Regulation) Act, 1992 and violated Article 14 by arbitrarily discriminating …

M/s. Gira Enterprises imported cyanuric chloride from China, declaring a value of US$5,001 per metric ton. The Customs Commissioner, relying on a computer printout that allegedly showed other imports of the same chemical at US$1,950 per metric ton, reassessed the value to US$1,860 per metric ton under Rule 5 of the Cus…

During a joint operation in January 1999, Nirmal Singh was apprehended and offered a choice to be searched before a magistrate or a gazetted officer under Section 50 of the ND PS Act. He chose a gazetted officer, and a search uncovered two kilograms of heroin; he also made a confession to a customs officer under Sectio…

The respondents, Rupa & Co. Ltd., are manufacturers of textile garments who imported various machines for fabric processing, inspection, knitting and dyeing under the Export Promotion Capital Goods (EPCG) Scheme and claimed a 100% customs duty exemption under Notification No. 29/97-Cus. The Revenue Department denied th…

The petitioners, Jain Brothers, who import automobile spare parts, challenged Section 3(2) of the Customs Tariff Act, 1975, on the ground that including customs duty in the valuation of imported goods for the purpose of levying an additional duty equal to excise duty was unconstitutional and ultra vires. The Supreme Co…

Hyderabad Industries Ltd. and others imported asbestos fibre, which they obtained by separating the fibre from its parent rock using manual and mechanical means, and paid customs duty under entry 25.01.32. They challenged the levy of additional duty under Section 3(1) of the Customs Tariff Act, 1975 and the liability t…

The appellant owned the vessel M.V. Indian Resolve which arrived at Calcutta carrying a mixed cargo that included 1,22,400 cigarettes. A shortage of 45,000 cigarettes was later discovered, and the Additional Collector of Customs invoked Section 115(1)(e) of the Customs Act, 1962 to confiscate the vessel, deeming the mi…

The Trustees of Port of Madras sued M/s. Nagavedu Lungi and Co., the exporter‑consignor, and other parties for recovery of demurrage and incidental charges arising from textile goods that were illegally detained in the customs area of the Port of Madras by the Collector of Customs. The City Civil Court dismissed the su…

The Supreme Court of India delivered a consolidated judgment on multiple appeals arising from the 1993 Bombay serial blasts case under the Terrorist and Disruptive Activities (Prevention) Act, 1987 (TADA). The appeals challenged convictions and acquittals of various accused persons involved in the conspiracy, landing, …

The Supreme Court examined 19 appeals filed by the State of Maharashtra against acquittals in the 1993 Bombay serial bomb blast case, focusing on conspiracy charges under the Terrorist and Disruptive Activities (Prevention) Act (TADA) and the Indian Penal Code. It reiterated the limited circumstances in which an appell…

The Department of Revenue Intelligence (DRI) intercepted a truck carrying a large quantity of hashish and, during the investigation, obtained confessional statements from Raj Kumar Karwal and Kirpal Mohan Virmani. The appellants argued that these statements should be excluded under Section 25 of the Evidence Act becaus…

The appellant, Commissioner of Customs, appealed against the Tribunal’s order that the royalty and licence fees payable under a technical assistance and trademark agreement (TAA) between M/s Ferodo India Pvt. Ltd. (the respondent) and its foreign licensor should be added to the customs value of imported raw materials. …

The importers (Grand Slam International and others) brought goods by air to Delhi, where Customs detained the cargo and later issued detention certificates. The International Airports Authority of India (IAAI) and Central Warehousing Corporation (CWC), approved custodians under Section 45 of the Customs Act, levied dem…

The Gramophone Company of India sought to prevent the import of cassette recordings it alleged were pirated and destined for transit to Nepal. It applied to the Registrar of Copyrights under s.53 of the Copyright Act, 1957, to have the cassettes declared prohibited imports. The Calcutta High Court allowed the Registrar…

The appellants imported cigarettes, stored them in a bonded warehouse in West Bengal and sold them to the master of a foreign‑going ship as ship stores without paying customs duty. They claimed the sales were "in the course of import" and therefore exempt from West Bengal sales tax under the 1954 and 1994 Acts. The Cou…

The importers, including Stoneman Marble Industries, were found to have imported rough marble blocks without the required licence and with mis‑declarations, leading to confiscation of the goods under Section 111(d) of the Customs Act, 1962. The Customs, Excise and Gold (Control) Appellate Tribunal reduced the redemptio…

The Union of India and the Collector of Customs appealed against a Bombay High Court order that allowed the exporter S.R. Dugar to re‑export four consignments of raw silk yarn. The silk had been imported by Ms. Renu Pahilaj under an advance import licence that was later cancelled. The licence required the silk to be us…

The appellants, Shri Jee Sales Corporation and another, imported PVC resin relying on Notification No. 66 dated 15 March 1979 which exempted customs duty on such imports up to 31 March 1981. After they had opened letters of credit and the goods arrived, the Government issued Notification No. 205 on 16 October 1980 with…

The Supreme Court examined whether mobile service providers (MSPs) could claim CENVAT credit on excise duties paid for mobile towers and prefabricated buildings (PFBs) used in their networks. The dispute arose from conflicting decisions of the Bombay High Court, which held the towers and PFBs to be immovable property a…

The Commissioner of Customs alleged that Mis. Phoenix International Ltd (PIL) and its subsidiary Mis. Phoenix Industries Ltd (PIND) split the import of synthetic shoe components—uppers by PIL and soles, insoles and sock liners by PIND—to evade customs duty and obtain a concessional rate under Notification No. 45/94-Cus…

The petitioner, a police SHO, was alleged to have misbehaved with a process server who was serving court summons, leading the process server to lodge a private complaint under s.195 CrPC. The Chief Metropolitan Magistrate (CMM) ordered registration of an FIR under s.186 and s.341 IPC and directed police investigation u…

The Directorate of Revenue Intelligence alleged that Suresh Kumar & Co. Impex Pvt. Ltd. and its directors under‑declared the retail selling price of imported branded food items, thereby evading customs duty. A show‑cause notice was issued, and the Adjudicating Authority confirmed the demand, interest and penalty. The C…

The firm P.V. Mohammad Barmay Sons owned three vessels and, without Reserve Bank of India permission, purchased and fitted foreign engines, contravening Sections 5(1)(a) and (b) of the Foreign Exchange Regulation Act, 1947. A raid in 1974 led to a notice, show‑cause proceedings and a penalty of Rs 50,000 imposed under …

Hari Prasad Chhapolia was convicted under the Customs Act, 1962 and the Gold (Control) Act, 1968; the High Court set aside the Customs conviction but upheld the Gold conviction. He appealed to the Supreme Court under special leave, but died while the appeal was pending. His legal heirs filed an application for substitu…

The respondent imported a chemical known as 'Sancticizer 429' and challenged the customs duty levied on it. The Assistant Collector classified it as a polymeric plasticizer under heading 39.01/06 of the Customs Tariff Act, 1975, a view upheld by the Appellate Collector. The Customs, Excise and Gold Control Appellate Tr…

M/s Bisco Limited imported 595 cases of second‑hand steel‑mill machinery to be stored in a notified public bonded warehouse. Because heavy rain made the warehouse inaccessible, the appellant obtained permission from the Superintendent under Section 64(d) to unload 264 cases outside the warehouse but within its factory …

The appellants were acquitted under Section 135(1)(b) of the Customs Act, 1962, and the Directorate of Revenue Intelligence filed an appeal against the acquittal under Section 378 of the Code of Criminal Procedure, 1973, after a 72‑day delay, seeking condonation under Section 5 of the Limitation Act, 1963. The Delhi Hi…

Daewoo Motors India Ltd imported plant and equipment under the Export Promotion Capital Goods (EPCG) Scheme, which required it to meet export obligations equal to six times the CIF value of the imports. The company furnished bank guarantees for licences exceeding Rs 100 crore. Although the export‑obligation period was …

Northern Plastics Ltd. imported X‑ray and graphic art films and claimed a concessional customs duty under a government notification, which was denied by the Assistant Collector of Customs. The Additional Collector later allowed clearance on full duty, prompting Hindustan Photo Films Ltd. (HPF), a business rival, and th…

Mohammad Aslam Khan was convicted under Section 22 read with Section 8(c) of the NDPS Act for possession of 50,000 Mandrex tablets seized from flat No.102 in Andheri. The prosecution relied on an agreement allegedly signed by the appellant, seized from the premises, and on statements made by the appellant under Section…

Costao Fernandes, a customs preventive officer, chased a vehicle suspected of smuggling gold and, during a scuffle, the driver died. He was prosecuted under Section 302 IPC, while claiming immunity under Section 155 of the Customs Act, 1962. The trial court and High Court denied the protection, alleging lack of prior i…

The appellant, C.I.T., Mumbai, challenged the assessment that the twisting and texturising of partially oriented yarn (POY) did not constitute "manufacture" under Section 80IA of the Income Tax Act, 1961. The Court examined expert testimony that POY is a semi‑finished yarn which, after undergoing a thermo‑mechanical pr…

Tamil Nadu Newsprint and Papers Ltd. imported machinery under a specific contract registered with customs under tariff heading 84.66 and had already received concessions on basic and additional customs duties under Notification 268/76. The company later claimed a total exemption from auxiliary duty under Notification 6…

The appellant imported seven hard disk drives pre‑loaded with computer software. Customs classified the consignment under heading 84.71 of the Customs Tariff Act, 1975, attracting a 25% duty, whereas the appellant contended that the goods should fall under heading 85.24, attracting only 10% duty as computer software. T…

The case concerns refunds of excise and customs duties collected contrary to law. The Supreme Court examined the validity of Section 11-B of the Central Excises and Salt Act, 1944, as amended in 1991, which restricts refunds to claimants who have not passed on the burden of duty to others. The Court overruled its earli…

Sheshank Sea Foods Pvt. Ltd. imported raw materials under an advance licence that incorporated Exemption Notification No. 116 (30‑April‑1988) issued under Section 25(1) of the Customs Act, 1962, with a condition that the materials not be sold, loaned, transferred or otherwise disposed. The Customs authorities alleged t…

Spice Telecom imported 30 radio terminals in 1998 and claimed exemption from customs duty under Notification No. 11/97 (as amended) which exempts BTS ancillary equipment. The Revenue argued that the radio terminals are independent equipment and not ancillary, rejecting the claim. The Customs Tribunal, relying on techni…

The appellants, exporters of garments under the Duty Entitlement Pass Book (DEPB) scheme, filed shipping bills claiming export benefits, but the goods were intercepted and found to be cheap garments grossly mis‑declared and heavily over‑invoiced. The Commissioner of Customs ordered confiscation of the goods under Secti…

Gulam Hussain Shaikh Chougule was convicted under Section 135 of the Customs Act for allegedly smuggling 207 silver ingots aboard a trawler intercepted by customs officers. During the investigation, his statement was recorded by a gazetted customs officer under Section 108 of the Customs Act, without the safeguards of …

Roche Products Ltd, a pharmaceutical manufacturer, imported the raw material isoxamine under an Open General Licence after the two‑year period permitted by its industrial licence for the manufacture of sulphamethoxazole (SMX) had expired. The company declared itself an "Actual User" and that its registration was not ca…

Nabha Power Ltd (NPL) and Talwandi Sabo Power Ltd (TSPL) entered into Power Purchase Agreements (PPA) with Punjab State Power Corporation Ltd (PSPCL) for a 700 MW coal‑fired project. They claimed that deemed export benefits under Paragraph 8.3 of the Foreign Trade Policy (FTP) 2009‑2014 were available at the bid cut‑of…

The appellant, M/s Shah Nanji Nagsi Exports Pvt. Ltd., exported corn starch and filed 54 shipping bills between July and October 2017 under the Foreign Trade Policy. Due to a clerical omission by its customs broker, the declaration of intent to claim the Merchandise Exports from India Scheme (MEIS) was entered as “No” …

M/s Patanjali Foods Ltd. (formerly Ruchi Soya Industries Ltd.) challenged the customs department’s encashment of bank guarantees that were furnished as security under interim High Court orders. The company argued that such encashment could not be treated as "payment of duty" for purposes of a refund under Section 27 of…

The Supreme Court examined whether the GST Council’s recommendations are binding on Parliament and the States, and whether the import of goods on a CIF basis creates an inter‑state supply that makes the Indian importer the deemed recipient of shipping services. It held that the Council’s recommendations are merely pers…

Oswal Spinning & Weaving Mills Ltd imported 58 bales of woollen rags, which Customs officials later identified as acrylic rags and confiscated under the Customs Act. The importer was offered the option to pay a redemption fine under section 125; the fine was reduced by the Board and the goods were ordered to be mutilat…

Sterlite Industries imported a Fully Automated Sequential X‑ray Spectrometer and claimed classification under sub‑heading 9027.30 of the Customs Tariff Act, 1975, seeking a lower duty rate and a partial exemption under Notification 46/96. The Customs Department classified the equipment under sub‑heading 9022.19, imposi…

M/s Bangalore Wire Red Mills imported a high reversible mill in 1982 and warehoused it without paying duty, executing a bond under Section 59(1) of the Customs Act, 1962. A notice dated 7 March 1985 required clearance within fifteen days, but the goods were only cleared on 9 September 1988, at which time duty was paid …

Chowgule & Co. Private Ltd. and V.S. Dempo & Co. imported second‑hand tankers that were converted into transhippers for topping‑up iron ore at Mormugao harbour. The Customs authorities demanded that the companies file Bills of Entry for the vessels, treating them as "goods for home consumption" under s.46 of the Custom…

The Union of India appealed against a Madras High Court order directing payment of a reward to informant C. Krishna Reddy for information that led to customs duty evasion proceedings. The respondent claimed a reward of Rs.1,71,43,272, while the department had sanctioned only Rs.10 lakh. The Supreme Court examined wheth…

The appellant, Bhana Khalpa Bhoi Patel, was charged under Sections 135(1-A) and 135(1-B) of the Customs Act, 1962 and Section 25 of the Gold Control Act, 1968 for involvement in the smuggling of contraband gold. The prosecution relied on statements recorded under Section 108 of the Customs Act from several co‑accused a…

The appellants, importers of PVC resins and aluminium products, relied on government notifications under Section 25(1) of the Customs Act, 1962 that exempted their goods from customs duty up to a specified date. The Central Government later issued withdrawal notifications before the expiry dates, citing changing market…

ITC Limited, a paper manufacturer, paid customs duty on waste paper after mistakenly claiming an exemption. It later filed a refund claim for duty paid between July 2001 and March 2002 under Section 27 of the Customs Act. The claim was rejected by the Assessment Committee, Commissioner of Appeals and the Customs, Excis…

Bhavya Apparels Private Ltd appealed a customs duty assessment. The Customs Appellate Tribunal dismissed the appeal for failure to pre‑deposit Rs 3 crores as required under Section 129E of the Customs Act, 1962, and the Gujarat High Court affirmed that order. The Supreme Court held that Section 129E applies only when t…

The Supreme Court examined whether Notification No. 281/Cus/76, which grants a partial exemption from customs duty, applies to rod bushes and camshaft bushes imported by Jain Engineering Co. The Court held that the notification does extend to parts of internal combustion piston engines listed under Heading 84.06, and t…

The Industrial Development Bank of India (IDBI), as a secured creditor, sought to enforce its charge over imported machinery that had been stored in a private bonded warehouse and remained unpaid of customs duty. The company was wound up on 1 December 2003, and the Official Liquidator applied for possession of the good…

The Directorate of Revenue Intelligence (DRI) intercepted Ms. Pushpa Lekhumal Tolani at Delhi airport on a tip that she was carrying gold and diamond jewellery concealed in her baggage and attempting to pass through the Green Channel without duty. A search under the Customs Act, 1962 uncovered 44 jewellery items worth …

The Supreme Court examined the validity of a detention order issued under Section 3(1) of the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (COFEPOSA) against Vinod K. Chawla, who was alleged to have evaded customs duty by under‑invoicing electronic imports and remitting proceeds thr…

The Union of India sought to detain Dimple Happy Dhakad and Nisar Pallathukadavil Aliyar under the Conservation of Foreign Exchange & Prevention of Smuggling Activities Act, 1974 (COFEPOSA) for allegedly smuggling over 3,300 kg of gold from the UAE. Detention orders dated 17‑05‑2019 were served on 18‑05‑2019, while the…

The appellant's factory was raided and 28 packages of synthetic fabrics were seized under Section 110(1) of the Customs Act, 1962 on 29 May 1969. A show‑cause notice required by Section 124(1)(a) was served only on 19 December 1969, exceeding the six‑month period prescribed in Section 110(2). The appellant argued that …

The case concerned importers of specialised transhipper vessels who claimed exemption from customs duty under Notification No. 262‑Customs dated 11 October 1958, which exempted "ocean‑going vessels". The Customs authorities insisted that the vessels were not "ocean‑going" and required the importers to file Bills of Ent…

The case concerned show‑cause notices issued under Section 28 of the Customs Act, 1962 by the Commissioner of Customs (Preventive), Mumbai, to re‑assess duty on imported goods that had been cleared for home consumption. The respondents challenged the jurisdiction of the preventive commissioner, arguing that only a "pro…

Shakti LPG Ltd. imported steel plates in 1996 and warehoused them under the Customs Act, 1962. The initial one‑year warehousing period was repeatedly extended until January 2001, after which the importer surrendered the goods in December 2004. When an auction was scheduled for September 2005, the importer sought to sto…

Bombay Dyeing & Manufacturing Co. Ltd entered into a contract with a U.S. firm to import a plant for manufacturing dimethyl terephthalate and applied for registration under the Project Import (Registration of Contract) Regulations, 1965. The contract was approved for a CIF value of US$17 million plus dismantling and te…

The appellant, a privately run Modern Heart Institute and Research Centre, applied for a certificate under Notification No. 64/88‑Customs (issued under Section 25 of the Customs Act, 1962) to import sophisticated hospital equipment without paying customs duty. The Director General of Health Services refused the certifi…

The Sunita Devi Singhania Hospital Trust, a charitable hospital, imported equipment under Notification 64/88-Cus which exempted it from customs duty provided it reserved 10% of beds for low‑income patients and offered free outpatient treatment to at least 40% of patients. The Customs, Excise and Service Tax Appellate T…

Aggarwal Industries Ltd. imported 500 metric tons of crude sunflower seed oil under a contract dated 26 June 2001 at US$435 per metric ton, but shipment was delayed until 5 August 2001. The Customs authority rejected the contract price as the transaction value, arguing that the international market price had risen shar…

Maheshwary Handling Agency Pvt. Ltd., a cargo clearing and forwarding company, used storage facilities at Kandla Port and was levied penalty rent for storing cargo beyond sixty days under a circular issued by the Traffic Manager on 31 August 1998. The agency challenged the circular, arguing that after the 1997 amendmen…

Priya Blue Industries Ltd imported a ship, paid customs duty under protest and later filed a claim for refund of Rs 79,64,648 under Section 27 of the Customs Act, 1962. The refund claim was rejected, as were subsequent appeals before the Customs, Excise and Gold (Control) Appellate Tribunal and the Supreme Court. The c…

The respondents, media companies, imported pre‑recorded audio cassettes and compact discs and paid royalties to foreign artists. The Customs Department assessed duty on a higher value, arguing that the royalty must be added to the transaction value under Section 14 of the Customs Act and Rule 9(1)(c) of the 2007 Custom…

Paras Laminates imported goods and claimed they fell under tariff item 84.60, but customs classified them under 73.15(2). After losing before the Collector of Customs, the importer appealed to the Customs, Excise and Gold (Control) Appellate Tribunal. A two‑member bench doubted the correctness of an earlier three‑membe…

Tarsem Kumar was intercepted by Customs in 1970, and Rs.93,500 in cash, gold sovereigns and his car were seized and placed under the custody of the Customs department. After the Customs seizure was quashed, the Income Tax Department issued a warrant under section 132 of the Income‑Tax Act to seize the cash from the Cus…

The Union of India challenged the Bombay High Court's orders directing the release of large quantities of yellow peas imported by M/s. Raj Grow Impex LLP and M/s. Harihar Collections, which were imported in excess of the quantitative limits and without the required licence under the 2019 FTDR notifications. The issue w…

Century Metal Recycling Pvt. Ltd. regularly imported aluminium scrap for alloy production and declared a transaction value of Rs.81.31 per kg. The customs authorities rejected this value, citing a Valuation Alert and compelled the importer to consent to a valuation by the authorities, thereby waiving its right to provi…

The appellant, the Commissioner of Customs (Port) Chennai, appealed against the CESTAT order that excluded royalty and technical know‑how fees from the transaction value of capital goods imported by Mis. Toyota Kirloskar Motor Pvt. Ltd. for setting up an automobile plant. The dispute centered on whether such payments, …

The private importers of edible oils challenged the differential customs duty rates granted to the State Trading Corporation (STC) under Section 25(2) of the Customs Act, 1962, alleging a violation of Article 14. The government had canalised edible‑oil imports through STC and, citing high international prices and the n…

The petitioners imported edible oil on the vessel M.V. Kotta Ratu, which made an initial arrival at Bombay on 11 July 1981 but could not secure a berth and sailed to Karachi before returning on 23 July and finally discharging cargo on 31 July 1981. Customs authorities levied duty at 150% on the basis that the "inward e…

The Steel Authority of India, a public sector steel manufacturer, imported graphite electrodes from China and challenged a notification imposing anti‑dumping duty on such imports. The challenge was dismissed by the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) which upheld the Designated Authority's metho…

Mis. Virlon Textile Mills Ltd., a 100% export‑oriented unit manufacturing polyester yarn, sold its products against foreign exchange in the Domestic Tariff Area (DTA) under permission granted by para 9.10(b) of the Export‑Import Policy (1997‑2002). The Revenue issued a show‑cause notice demanding differential duty, arg…

The Supreme Court examined writ petitions filed by licensed gold dealers challenging several provisions of the Gold Control Act, 1968 (as amended) and its associated rules on the grounds that they violated Articles 14, 19(1)(g), 301 and 302 of the Constitution. The petitioners argued that sections 16(7), 52, 79 (and it…

The Commissioner of Central Excise appealed against the exemption claimed by M/s Ginni Filaments Ltd., a 100% Export Oriented Unit manufacturing filament yarn, for items such as air‑conditioner sheets, tables and chairs. The assessee had obtained a CT‑3 certificate under Notification No. 123/81‑CE allowing removal of t…

The Commissioner of Customs issued a show‑cause notice to Indian Oil Corporation alleging that the company had misdeclared the value of imported petroleum products by including demurrage charges paid to ship owners. The Revenue demanded additional customs duty and penalty, but the Customs Excise and Gold (Control) Appe…

Maliyakkal Abdul Azeez was convicted under Section 135(1) of the Customs Act for smuggling gold and sentenced to three years' rigorous imprisonment, later reduced to two years. He had earlier been detained for two years under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act (COFEPOSA), a …

The appellants, Kothari Filaments, imported lithopone but some bags contained tetracycline HCl, a restricted chemical. Customs issued a show‑cause notice under Sections 111(d), 111(m) and 112(a), (b) of the Customs Act, 1962 alleging mis‑declaration, duty evasion and imposed confiscation and penalties. The appellants c…

On 31 December 1998, a Border Security Force (BSF) Assistant Commandant intercepted a jeep near the Indo‑Bangladesh border carrying 44 bags of sugar and arrested the driver for failing to produce transport documents. The seized sugar was handed to the customs inspector and the driver was produced before a Sub‑Divisiona…

Kalema Tumba, a Zaire national, arrived at Bombay Airport and his baggage was searched by Narcotics Control Bureau officers based on prior intelligence, leading to the seizure of 2 kg of heroin. The seized heroin was identified through a chemical analyser report and the appellant’s own statement under Section 108 of th…

The appellants, Pine Chemical, imported gum rosin and declared it as 'OFF' grade with a CIF value of US$410 per tonne. Laboratory tests and intelligence reports later established that the actual grade was 'WG', a higher quality with a CIF value of US$465 per tonne, constituting a misdeclaration. The appellants voluntar…