“Completely Unacceptable”: Delhi High Court Pulls Up Customs For Prolonged Detention Of Export Goods Despite Dept's Circular

A division bench of Justices Prathiba M. Singh and Rajneesh Kumar Gupta observed, “This position is completely unacceptable to the Court…consignment cannot be held up in this manner…expedited steps are not taken for clearing of goods.”

Petitioner's export consignment of 'ladies PVC slippers' was put on hold by the Customs Department in January this year.

Petitioner claimed no reasons were given and no seizure memo was drawn until he approached the High Court. It was also submitted that despite repeated letters to the Commissioner of Customs, requesting for release of the goods, no action was taken.

The Department on the other hand submitted that there is an apprehension that the PVC slippers are grossly overvalued with an intention to claim duty drawbacks in an irregular and unlawful manner.

It was submitted that the matter has been referred to the Special Intelligence and Investigation Branch and three weeks may be granted.

This position, the Court was prompted to remark, “is completely unacceptable to the Court, in as much as since 13th January, 2025, no seizure memo has been drawn as well as no Panchama has also been drawn by the authorities.”

The Court referred to the Circular dated 05th August, 2013 issued by the Central Board of Excise and Customs stating that wrongful detention of export goods is not advisable and in fact continued detention of export goods in excess of three days must be brought to the notice of the Commissioner of Customs.

Thus, the Court said that if the Department has any apprehension of undervaluation, “suitable steps would have to be taken by the Department in respect thereof but the consignment cannot be held up in this manner.”

It added that the CBIC Circular itself recognises that there is a need for expedited clearing of goods unless they are prohibited goods.

“The delay in this manner would not be permissible as consignments of the Petitioner and other similarly placed persons are held up, when expedited steps are not taken for clearing of goods,” Court finally said and directed the Department to provisionally release the goods, within seven days.

Appearance: Mr. Chinmaya Seth, Mr. A.K. Seth and Ms. Palak Mathur, Advocates for Petitioner; Mr. Jatin Singh, Advocate for Respondent

Case title: Backbone Overseas v. Assistant Commissioner Of Customs, Foreign Post Office , New Delhi And Anr.

Citation: 2025 LiveLaw (Del) 393

Case no.: W.P.(C) 3711/2025

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