Prenda Creations Private Limited Vs Union of India And others (Punjab Haryana High Court)
Refund is warranted when perishable goods perished due to departmental obstruction, and compensation of Rs. 50 Lakhs to be paid by erring officer
The Punjab and Haryana High Court has ruled in favor of Prenda Creations Private Limited, an importer whose consignment of Kiwi fruit perished due to delays caused by customs officials and a shipping company. The petitioner had imported four containers of Kiwi, but their clearance was obstructed because the Import General Manifest (IGM) was incorrectly filed at Mundra Port instead of the designated final destination, ICD Ludhiana. The court found that the customs officials had a statutory power under Section 30(3) of the Customs Act, 1962, to amend the IGM but instead improperly relied on a circular that put the responsibility on the shipping line. This procedural failure, combined with delays in complying with the court’s interim orders to release the goods, led to the entire consignment of perishable fruit becoming unfit for consumption after more than three months. The court noted that the customs department’s actions were illegal, especially as they ignored clearances from the FSSAI and Plant Quarantine Department. As a result, the court directed the refund of customs duty with 6% interest and ordered a compensation of ₹50 lakhs to be paid to the petitioner. The court specified that this compensation should be recovered from the erring officers responsible for the delay. The court also mandated the authorities to establish a new policy to prevent similar issues with perishable imports in the future.
