Customs official cannot arbitrarily disregard statutory orders of customs clearance

Bombay High Court Criticizes Customs Officer for Overreach and Orders Review of Detained Goods. Court mandates expedited show cause process for dry dates shipment accused of misdeclaring origin
In a significant decision dated October 8, 2025, the Bombay High Court has reprimanded a customs official for overstepping legal bounds, resulting in the detention of a shipment of dry dates. The court has ordered the Customs Authorities to issue a show cause notice to the importer, Make India Impex, within four weeks and adjudicate the matter within six weeks thereafter. The decision stems from the alleged misdeclaration of the country of origin of the goods, suggesting they originated from Pakistan rather than Dubai.
The issue arose when Make India Impex filed a writ petition seeking the release of approximately 56 tons of dry dates detained by customs despite receiving clearance under Section 47 of the Customs Act, 1962. The petitioner argued that the sixth respondent, Mr. Sumit Kataria, arbitrarily forced the return of the cleared goods to the Customs Freight Station (CFS), disregarding statutory procedures and principles of natural justice.
Justice M.S. Sonak and Justice Advait M. Sethna criticized the customs officer's actions, noting the absence of a formal procedure or show cause notice, which is essential for challenging a clearance order. The court highlighted that the customs officer's reliance on intelligence information did not substitute for the legal process required to address misdeclaration allegations.
The judgment emphasized the rule of law, asserting that statutory powers must be exercised within legal frameworks. The court further directed that if the timeline for issuing and adjudicating the show cause notice is not adhered to, the detained goods must be released upon payment of a redemption fine or provision of a bank guarantee.
This case underscores the importance of adhering to statutory procedures and the principles of natural justice, particularly when government actions result in significant civil consequences for the affected parties. The judgment provides a critical reminder of the boundaries of executive power and the necessity of legal compliance.
Bottom Line:
Customs - Exercise of statutory powers - Government official cannot arbitrarily disregard statutory orders of customs clearance or principles of natural justice without legal justification.
Statutory provision(s): Customs Act, 1962 Sections 47 and 106, Constitution of India Article 226
Make India Impex v. Union of India, (Bombay)(DB) : Law Finder Doc Id # 2790974