Misdeclaration of Broken Cashew Nut Pieces and Residues under Customs Act: Andhra Pradesh HC directs DRI to Expedite Decision considering perishable nature [Read Order]

The Andhra Pradesh High Court has directed the Directorate of Revenue Intelligence (DRI) to expedite its decision on a show-cause notice issued to an importer, taking into account the perishable nature of the goods. The DRI had issued a formal show-cause notice for misdeclaration of Broken Cashew Nut Pieces and Residues and violation of the Customs Act, 1962.

M/s Midsea International Private Limited, the petitioner, is engaged in the import of "vegetable waste (Broken Cashew Nut Pieces and Residues)" from Vietnam for use as cattle feed. The consignment arrived at Kakinada Sea Port and, after the petitioner paid IGST and other charges, all customs formalities were completed and a gate pass was issued on 08.07.2025.

While the petitioner was about to move the goods, DRI officials detained the containers and later issued a summons under Section 108 of the Customs Act, 1962. The petitioner challenged this action as illegal and arbitrary, alleging it violated their right to trade under Article 19(1)(g) of the Constitution.

The core issue before the Court was the alleged misdeclaration of the imported goods and the subsequent detention of the consignment by the DRI after all customs clearances had been obtained.

The Division Bench of Justice Battu Devanand and Justice A. Hari Haranadha Sarma noted that during the pendency of the writ petition, the DRI had issued a formal show-cause notice dated 19.09.2025 to the petitioner for the alleged misdeclaration of goods and violation of the Customs Act. The petitioner's counsel confirmed receipt of this notice and expressed readiness to submit an explanation immediately, requesting an early decision in view of the perishable nature of the goods.

The Court disposed of the writ petition, offering a pragmatic solution to the immediate problem. The Court permitted the petitioner to submit an explanation to the show-cause notice dated 19.09.2025, as expeditiously as possible, without waiting for the full 30 days prescribed.

It further directed respondent No. 6 (Joint/Additional Commissioner of Customs, Kakinada) to consider the explanation and pass appropriate orders in accordance with law within a period of two weeks, after affording a reasonable opportunity of hearing to the petitioner.

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