Surinder Singh And Ors Vs Chief Commissioner of Customs (High Court Delhi)
Delhi High Court upheld the compounding fees imposed by the Chief Commissioner of Customs on three petitioners under Section 137(3) of the Customs Act, 1962. The petitioners were apprehended for illegally transporting foreign currency and challenged the imposed fees of ₹2,30,000, ₹5,60,000, and ₹2,00,000, set at approximately 7.7%, 4%, and 4% of the seized currency values respectively. These fees were determined in line with Rule 5(5) of the Customs (Compounding of Offences) Rules, 2005. The petitioners argued that, as mere carriers, the compounding fees fell on the higher end of the permissible range. However, the court found no fault with the fees, stating that the amounts represented a reasonable fraction of the seized currency. The Chief Commissioner’s directive required payment within 30 days, with proof submitted to the Compounding Authority, and the court granted an additional 30-day extension for compliance. Consequently, the court dismissed the petition, deeming the compounding fees appropriate and lawful, and concluded that no grounds for interference existed under Section 226 of the Indian Constitution. All pending applications were also dismissed, and the case was closed on these terms.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
