Dhillon Overseas Vs Central Board of Indirect Taxes & Customs And Others (Punjab And Haryana High Court)
Summary: The Punjab and Haryana High Court allowed the writ petition filed by M/S. Dhillon Overseas concerning continued non-release of imported “Low Alloy Scrap” detained by Customs authorities. The goods arrived on 18.12.2023 and the Bill of Entry No. 9307732 was presented on 19.12.2023. Upon examination, Customs treated the goods as “Wire Bundles” rather than “Low Alloy Scrap”, resulting in reassessment and additional duty, which the petitioner paid on 14.02.2024. A communication dated 18.03.2024 was thereafter issued concerning waiver of detention charges and a detention certificate, but the goods remained in the custody of respondent No.5 even after “out of charge” was granted on 18.04.2024.
The Court noted that the relevant Handling of Cargo in Customs Areas Regulations, 2009, including Regulation 6, governed responsibilities relating to handling of detained goods. An interim order dated 16.12.2024 had directed release of the goods subject to surety bonds. A subsequent contempt proceeding, COCP-2388-2025, recorded that the petitioner had furnished surety bonds, but the goods were nevertheless not released. The Court also considered the respondents’ reliance upon a delivery order requirement and Circular No. 24/2015 – Customs. The Court rejected the objection based on an alleged misstatement concerning the goods being perishable, noting that its order dated 01.10.2025 had already directed deletion of that observation as an inadvertent error.
