Supreme Court Set to Hear Empire Exports in Betel Nut Import Case Challenging Calcutta HC Order of Fresh Adjudication [Read Judgement]

The case traces its origins to a series of customs proceedings concerning the importation of betel nuts below the minimum import price fixed by the Director General of Foreign Trade (DGFT) by the petitioner Empire Exports.

The Commissioner of Customs (Preventive), West Bengal, had initially ordered confiscation of the goods and imposition of redemption fine and penalty, holding that the imports violated DGFT’s notifications under the Foreign Trade (Development and Regulation) Act, 1992.

Also Read: Can Customs Deny Advance Authorisation Benefit for MisclassifiedImports? Supreme Court Stays Kerala HC Relief to Nitta Gelatin

However, the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) had set aside the confiscation, relying on the decision in International Seaport Dredging Ltd. v. C.C. & S.T., Visakhapatnam (2016), holding that such imports were not prohibited goods. The Department appealed this decision before the High Court under Section 130 of the Customs Act.

Recent GST Rulings You Can’t Ignore! Are you updated? Click here

Before the High Court, Bhaskar Prasad Banerjee, Counsel for the Customs Department, contended that the Tribunal’s decision ignored binding precedents and misconstrued the DGFT’s statutory power. They argued that importation below the DGFT’s fixed CIF value rendered the goods liable for confiscation.

On the other hand, Mr. N. Chowdhury and Mr. Deepak Sharma, Counsel for Empire Exports, urged that the goods were not prohibited under the Customs Act and that the declared transaction value should prevail.

Also Read: Book Entries of Unverified Bank Overdrafts Not Genuine IncomeTax Liabilities: Supreme Court sustains Delhi HC Order

The High Court Bench of Justice T.S. Sivagnanam and Justice Hiranmay Bhattacharyya noted that the Tribunal had failed to consider crucial judicial precedents, including Union of India v. Navin Kumar Jha (2016) which would have bound the tribunal.

Holding that these rulings confirmed the Central Government’s authority to regulate imports in the national interest, the High Court set aside the CESTAT order and remanded the matter to the Tribunal for fresh consideration in accordance with these judgments.

The Supreme Courtbench of Justice B.V. Nagarathna and Justice R. Mahadevan has listed the matter for further hearing on January 13, 2026 for further adjudication.

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates