Bombay High Court strikes down Customs Circular Limiting Shipping Bill Amendments citing Violation of section 149 of Customs Act [Read Order]

The High Court of Bombay has struck down Para 3(a) of Customs Circular No. 36/2010, which imposed time limits for amending shipping bills, citing a violation of Section 149 of the Customs Act, 1962.

The decision came as a relief to Colossustex Private Limited and Todi Rayons Private Limited, who had challenged the circular’s validity.

The petitioners, Colossustex Private Limited and Todi Rayons Private Limited had sought the court’s intervention through a writ petition under Article 226 of the Constitution of India.

The petitioners, represented by Ms. Neha Anchlia and Mr. Anand Kanse, challenged Customs Circular No. 36/2010 and the order issued by the Assistant Commissioner of Customs, which had rejected their application for amending shipping bills.

The case revolved around the amendment of shipping bills for goods imported and exported by the petitioners under different export promotion schemes.

The petitioners had requested the Customs authorities to amend their shipping bills to align them with the appropriate schemes, as provided for in Section 149 of the Customs Act, 1962.

As per Section 149 of the Customs Act, 1962, no amendment shall be allowed after the goods have been exported except on the basis of the documentary evidence that was in existence at the time the goods were exported.

However, the Assistant Commissioner of Customs rejected their request, citing Customs Circular No. 36/2010, which imposed a three-month time limit for such amendments from the date of the Let Export Order. The petitioners contended that this circular was ultra vires Section 149 of the Customs Act.

The respondent revenue, represented by Mr. Karan Adik and Mr. Dhananjay B. Deshmukh reiterated the findings.

The bench noted that prior to the 2019 amendment to Section 149, Customs Circular No. 36/2010 had prescribed time limits for amendments without any legal authority to do so. This, the Court declared, rendered the circular illegal.

The Court observed that the 2019 amendment to Section 149 did not provide retrospective validity to the circular. Furthermore, the circular did not qualify as a regulation under the Customs Act, making it invalid.

The bench also referred to the decision by the Gujarat High Court in the case of M/s. Mahalaxmi Rubitech Ltd., which had similarly struck down the circular, deeming it ultra vires of Article 14 of the Constitution and Section 149 of the Customs Act.

The Bombay High Court ruled in favour of the petitioners, striking down Customs Circular No. 36/2010 and ordering the Customs authorities to accept the petitioners’ application for amendment of the shipping bills.

The division bench comprising G.S. Kulkarni and Jitendra Jain concluded that exporters and importers shall have the opportunity to amend shipping bills as required by law, without arbitrary time limits imposed by circulars lacking legal authority.

To Read the full text of the Order CLICK HERE

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