Shubh Impex Vs Union of India & Ors. (Delhi High Court)
In the case of Shubh Impex vs. Union of India, the Delhi High Court addressed a dispute over the classification of imported “hooks and eyes fastening strips.” Shubh Impex argued that the goods should fall under Custom Tariff Heading (CTH) 83081010, incurring a customs duty of ₹3.7 lakhs, while the respondents classified them under Chapter Heading 6212, resulting in a much higher duty of ₹16.82 crores. The petitioner challenged this classification and the corresponding assessment order. To appeal, Shubh Impex was required to make a pre-deposit of ₹1.27 crores, which it claimed would severely impact its business due to its financial condition. The Court acknowledged the financial strain this pre-deposit would cause and, while recognizing the availability of an alternative appellate remedy, reduced the pre-deposit to ₹5 lakhs, in addition to the already paid amount of ₹3.7 lakhs. The Court emphasized that this decision was made in consideration of the petitioner’s financial background and the merits of the case, noting that the discretion to reduce pre-deposit should be exercised only in rare and deserving cases. The writ petition was disposed of with instructions for the appeal to be heard promptly.
