Consumer Laws : Customs Department officers cannot be proceeded against under the Consumer Protection Act, 1986

Kerala High Court Invalidates Consumer Forum Orders Against Customs Department. Court Rules Customs Officers' Statutory Functions Are Not "Service" Under Consumer Protection Act

In a significant ruling, the Kerala High Court has set aside orders from the District Consumer Forum and the State Consumer Commission against the Customs Department, clarifying that the statutory duties performed by customs officers do not fall under the definition of "service" as per the Consumer Protection Act, 1986. The judgment was delivered by a division bench comprising Mr. Sushrut Arvind Dharmadhikari and Mr. Syam Kumar V.M.

The case originated from a complaint regarding the clearance of unaccompanied baggage imported by a passenger, Chellappan, from Riyadh. Following Chellappan's death, his widow filed a complaint alleging negligence in the delivery of the baggage. The District Consumer Forum initially directed the Customs Department to compensate the complainant, which was subsequently modified by the State Consumer Commission.

The Deputy Commissioner of Customs challenged these orders, arguing that customs officers, while performing statutory duties, do not render "service" for consideration as defined under Section 2(o) of the Consumer Protection Act, thereby excluding them from the jurisdiction of consumer courts.

The High Court upheld this argument, emphasizing that the statutory functions of the Customs Department are governed by the Customs Act, 1962. Section 155 of the Customs Act provides protection against legal proceedings for actions done in good faith under the Act, reinforcing the immunity of customs officers from consumer complaints.

The bench also criticized the learned Single Judge for relegating the petitioner to seek an alternate remedy before the National Commission, stating that consumer courts lack jurisdiction in such matters. Consequently, the orders of the District Consumer Forum and State Consumer Commission were nullified.

The ruling underscores the delineation between statutory functions and consumer services, affirming that consumer laws do not apply to governmental duties executed in good faith. The judgment serves as a precedent, safeguarding statutory bodies from consumer litigation concerning their official functions.

Bottom Line:

Customs Department officers, while performing statutory duties under the Customs Act, 1962, cannot be proceeded against under the Consumer Protection Act, 1986, as the functions of the Customs Department do not fall under the definition of "service" under the Act.

Statutory provision(s): Consumer Protection Act, 1986 Section 2(o), Customs Act, 1962 Section 155

Deputy Commissioner of Customs v. Belsi, Chellappan Nadar, (Kerala)(DB) : Law Finder Doc Id # 2796056