Case Law Details
Shanus Impex Vs Union of India & Ors. (Delhi High Court)
Introduction: In a significant development, the Delhi High Court has quashed a Customs Circular, terming it contrary to the provisions of the Customs Act, 1962. The circular, bearing No.35/2017-Cus dated 16.08.2017, came under scrutiny as it was alleged to limit the discretion of the adjudicating authority, particularly in imposing conditions for provisional release. The court’s decision also nullifies an order dated 02.12.2023, wherein provisional release was granted subject to stringent conditions.
Detailed Analysis: The petitioner, Shanus Impex, challenged the Customs Circular on the grounds that Paragraph 2 of the circular contradicts Section 110A of the Customs Act. Section 110A provides the adjudicating authority with the discretion to provisionally release seized goods, subject to conditions and security as deemed necessary.
The court referred to a precedent, Additional Director General (Adjudication) v. M/s Its My Name Pvt. Ltd., wherein it was unequivocally stated that the circular curtails the authority’s discretion granted by Section 110A. The court declared Paragraph 2 of the impugned circular void and unenforceable, emphasizing that executive instructions cannot supplant statutory provisions.
The impugned order dated 02.12.2023, influenced by the circular, was also set aside. The court directed a fresh consideration of the petitioner’s application for provisional release before respondent no.6. Considering the perishable nature of the goods involved, a swift decision was mandated, with respondent no.6 instructed to pass a speaking order within four working days from the date of the judgment.
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