Legal principle

Goods brought into Indian waters only for transhipment are still 'imported goods' under the Customs Act, so a prohibition covering import or transit applies to them, and the importer's intention is irrelevant to confiscation under Section 111.

Court decision

The writ appeal by customs was allowed, so the single judge's order releasing the goods was set aside. The court held the transit goods were imports for the notification, DRI at Chennai had jurisdiction, the treaty did not override Indian law, and the whole consignment of 4050 bags could stay seized. The disputed origin question was left to the authorities under the statute and rules.

Facts

Dhanalaxmi Food Pvt Ltd, a Nepal company, was the consignee of six containers of raw unshelled watermelon seeds (4050 bags, 1,61,490 kgs) shipped from Jebel Ali, UAE under two bills of lading dated 26.05.2025, to be transhipped at Chennai to Kolkata and then sent by road to Nepal. DGFT Notification No.6/2025-26 dated 02.05.2025 had inserted Para 2.20A in the Foreign Trade Policy 2023, prohibiting direct or indirect import or transit of all goods originating in or exported from Pakistan. DRI examined the containers at Chennai Port, found 300 bags labelled origin Pakistan, and seized the whole consignment on 27.06.2025. A single judge quashed the seizure and summons and ordered release for transhipment. Customs appealed to a Division Bench.

Key provisions

• Section 2(25), Customs Act, 1962 — Definitions