Legal principle

Once a provisional assessment is finalised by an adjudication order, the importer must normally challenge it in appeal under Section 128, where arguments about delay can also be raised. A writ petitioner who hides a material adjudication order is likely to be refused relief.

Court decision

The Delhi High Court dismissed the writ petition as not maintainable in its present form. The importer was given liberty to appeal to the Commissioner (Appeals) under Section 128(1) against the Orders in Original dated 21.01.2022, 31.03.2026 and 15.06.2026. All points on merits and on delay are left open, and the time spent in the writ petition is to be considered in any application for condonation of delay.

Facts

Kuku Overseas imported Christmas lights, rope lights, LED strips and iron buckles from China under nine bills of entry dated 17.10.2014 and 07.05.2015. Customs assessed them provisionally (a temporary assessment pending final duty) under Section 18, and the importer gave bank guarantees of Rs.19,19,400. In 2024 the importer filed a writ petition complaining that the assessments had stayed provisional for over nine years, and asked for release of the bank guarantees and an order stopping finalisation. It did not disclose that an Order in Original dated 21.01.2022 had already absolutely confiscated the goods of one bill of entry under Sections 111(d) and 111(m) and imposed penalties under Sections 112(b)(i) and 114AA. Two more Orders in Original were passed on 31.03.2026 and 15.06.2026 for the other bills.

Key provisions

• Section 128(1), Customs Act, 1962 — Appeal to Commissioner (Appeals)