Customs Seizure Memo on Detention of Goods Issued Post-Writ Filing: Delhi HC Rejects Delayed Petition, directs Provisional Release of Goods [Read Order]

The Delhi High Court in its recent ruling, directed the Customs Department to provisionally release export goods that had been detained since 13 January 2025, noting that the delay in issuing the seizure memo and holding the goods without proper procedure as “completely unacceptable”.

The petitioner Backbone Overseas, engaged in the business of export filed a petition under Article 226 and 227 seeking directions to the Customs Department for the unconditional and provisional release of export goods.

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The petitioner had filed a postal bill of Export (PBE) for ladies Polyvinyl Chloride (PVC) slippers valued at ₹9,29,145.6. These goods were put on hold by the Customs Department on 13 January 2025, no reasons were given and no seizure memo was even drawn for the same until 25 March 2025.

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The petitioner submitted that even after repeated letters to the Commissioner of Customs, requesting for release of the goods and seeking reasons for detention the petitioner received no response. The only communication received was dated 20 January 2025, wherein the Office of the Assistant Commissioner of Customs had stated that the matter had been referred to the Special Intelligence and Investigation Branch (SIIB).

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Chinmaya Seth, A K Seth and Palak Mathur, counsels for the petitioner further submitted that as per Circular No. 30/2013 dated 5 August 2013 issued by the Central Board of Excise and Customs (CBEC), wrongful detention of export goods is not advisable and continued detention of export goods in excess of three days must be brought to the notice of the Commissioner of Customs.

Despite repeated letters to the office of Commissioner of Customs, no response was received by the petitioner which prompted the filing of the present writ petition in question seeking release of goods.

On 25 March 2025, when the matter was listed Jatin Singh, counsel for the Customs Department sought an adjournment to take instructions. Again on the next date a further period of three weeks was sought citing that the SIIB was still examining the matter. The department submitted that there was an apprehension that the goods in question were grossly overvalued to claim duty drawbacks in an irregular and unlawful manner.

The bench comprising Justice Prathiba M. Singh and Justice Rajneesh Kumar Gupta noted the concern of the Department but stated that if such apprehension existed then suitable steps should have been taken by the Department but cannot hold up export goods in this manner.

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Further, emphasizing the requirement for expeditious clearance the bench referred to Circular Circular No. 30/2013 dated 5th August 2013, which stated that there should be no unjustified delay in releasing export goods unless they are prohibited goods.

The Court held that the Department only began taking action after the writ petition was filed and further stated that such delays were not permissible. The Court then directed the Customs Department to take a decision and provisionally release the goods within seven days.

Accordingly, the writ petition was disposed of.

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