Delhi HC imposes Rs 35,000 cost on customs dept for prolonging matter related to tariff hike on flat panel display units

The petitioners argued that they would be put to irreparable harm and injury if all the pending consignments were classified and taxed at the tariff rates in terms of the amended hike in import tariff. It was also argued that without amending the Customs Tariff Act, the tariff duty payable in respect of imported goods till February 1 could not have been increased simply through a notification.

The companies also informed the court that while they were willing to pay the tariff for the imported goods with effect from the date of the increased tariff, they “ought not to be burdened” with the increased tariff for past imports.

The high court then issued a notice seeking the CBIC’s stance on February 20.

Customs officials fail to be present in court

A bench of Justices Prathiba Singh and Shail Jain, noting the delay on the CBIC’s part, recorded that since February, “these matters have been listed on six dates” and that the department had thus far not explained the reason for amending the import tariff in February from the principal notification of 2017.

On August 7, the court directed officials of the CBIC to be present on the next date of hearing, but no such official was present on September 15.

“A short matter is unnecessarily being prolonged by the Respondents. The entire industry, which is importing such All-in-One units, has filed these writ petitions before this Court and are currently clearing their goods after depositing the Customs duty, which is made subject to the outcome of this writ petition. Considering the same, the matter deserves to be taken seriously by the department, which clearly it is not,” the bench recorded in its order on September 15.

Directing the CBIC to pay costs of Rs 5,000 for each of the seven writ petitions, which should be deposited in the DHCBA Natural Calamities Relief Fund, the court said, “If the same is not deposited, the right to file the affidavit shall stand closed.”

The court further ordered that a CBIC official who is well-versed with the matter should be present in the court on the next date of hearing, November 19.