Jaiprakash Associates Limited Vs The Office of The Commissioner of Customs Air Cargo Complex Import & Anr. (Delhi High Court)
Summary: The Delhi High Court has quashed the Order-in-Original dated 02.06.2026 confirming differential customs duty of Rs.5,89,366/-, interest and a penalty of Rs.4,00,000/- against Jaiprakash Associates Limited in respect of Digital and Network Video Recorders imported on 15.09.2023. The Court held that the underlying customs liability arose from a pre-CIRP transaction and therefore constituted a “claim” under the Insolvency and Bankruptcy Code, 2016 even though the differential duty had not been adjudicated when CIRP commenced.
CIRP commenced on 03.06.2024. A public announcement was issued on 06.06.2024, with 17.06.2024 as the prescribed last date for submission of claims. The Customs Department did not submit its claim before the Resolution Professional. Meanwhile, the Customs Department issued a Pre-Notice Consultation letter on 24.07.2025 and a Show Cause Notice dated 10.09.2025 concerning denial of the benefit of Serial No.499A of Notification No.50/2017-Customs and the resulting differential duty. The CoC approved Adani Enterprises Limited’s Resolution Plan on 31.10.2025, and the NCLT approved it on 17.03.2026. Clause 4.12.1 of the Approved Resolution Plan expressly provided for extinguishment and NIL treatment of specified pre-CIRP claims that were not submitted, rejected or not verified.
