Backbone Overseas Vs Assistant Commissioner of Customs (Delhi High Court)
The Delhi High Court addressed a petition filed by Backbone Overseas, concerning the prolonged detention of their export goods by the Customs Department. The petitioner had filed a Postal Bill of Export (PBE) for ladies PVC slippers, valued at Rs. 9,29,145.6, on January 13, 2025. The consignment was held by Customs without any stated reasons or a seizure memo until March 25, 2025, despite repeated requests for release and clarification. The petitioner’s counsel highlighted Circular No. 30/2013, issued by the Central Board of Excise and Customs (CBIC), which mandates expedited clearance of export goods and requires that detentions exceeding three days be reported to the Commissioner of Customs. The court found the Customs Department’s delay “completely unacceptable,” particularly as no formal seizure memo or panchnama was issued for over two months.
The Customs Department, represented by Inspector Suryadeo Kumar, admitted that the seizure memo was only issued on March 25, 2025, after the writ petition was filed. Their justification for the detention was an apprehension of overvaluation to claim undue duty drawbacks. The court, however, emphasized that such apprehensions did not justify the prolonged and irregular detention, especially in light of the CBIC circular advocating for swift clearance of genuine exports. The court noted that the Customs Department only initiated action, including issuing summons and requesting documents, after the petitioner approached the High Court. The court criticized this reactive approach, highlighting the adverse impact of such delays on exporters. Consequently, the Delhi High Court directed the Customs Department to make a decision and provisionally release the goods within seven days, subject to reasonable conditions. The petitioner was instructed to cooperate with the Customs Department by providing all requested documents. The court disposed of the writ petition, emphasizing the need for timely customs procedures and adherence to CBIC guidelines.
