Delhi HC lambasts Customs department for not obeying Court orders; Imposes cost of ₹10k [Read Order]

Re-Assessment Notice - Delhi High Court - Tax Scan

The division bench of Delhi High Court yesterday criticized Customs department for disobeying court orders. The Court further set aside the order of the Department rejecting the refund claim of the assessee in the instant case.

The Petitioner YU Televentures Pvt. Ltd approached the High Court for refund of excess additional customs duty paid under Section 3 (1) of the Customs Act, 1962 read with Serial Number 263A and condition no. 16 of Notification No. 12/2012-CE dated 17th March 2012.

The Petitioner company sells, inter alia, electronic products such as mobile phones etc. As part of its business activities, the Petitioner imported mobile handsets including cellular phones. 10 Bills of Entry (B/Es) were filed by it in January 2015 – February 2015. On these B/Es, the Petitioner paid additional customs duty @ 6%, even though the Petitioner was liable to pay only 1% CVD. The Petitioner refers to Serial No. 263A of Notification No. 12/2012 – CE dated 17th March 2012 which was applicable to mobile phones and provided for an effective rate of duty @ 1% of CVD for mobile phones, provided no CENVAT Credit on inputs or capital goods has been availed.

“In view of the conscious violation of the law by Respondent No. 4 Mr. Pranjal Singh, to require a copy of this order to be sent to Respondent No. 3 i.e., the Commissioner of Customs Air Cargo Export, Refund Section New Customs House with a direction to him to call for an explanation from Mr. Pranjal Singh Deputy Commissioner Refund on the administrative side and take further action as he considers appropriate in accordance with law”, said in the order.

A bench comprising of Justice S Muralidhar and Justice Nazimi Waziri set aside the order of the customs department dated 7 June which rejected a refund to Yu Televentures.

The court also imposed cost of Rs.10,000/- that the customs department will have to pay Yu Televentures within four weeks.

The Court also directed to pay the Petitioner the amount of refund as claimed together with interest due thereon up to the date of refund not later than two weeks.

Read the full text of the order below.