“This Position Is Completely Unacceptable”: Delhi HC Slams Customs Over 72-Day Export Delay, Orders Provisional Release of Goods Within 7 Days — “Genuine Exports Must Be Facilitated”
Safiya Malik
In a significant directive concerning the timely release of export consignments, the Division Bench of the Delhi High Court comprising Justice Prathiba M. Singh and Justice Rajneesh Kumar Gupta has mandated the Customs Department to make a decision within seven days regarding the provisional release of goods detained at the Foreign Post Office, New Delhi. The court observed that despite the consignment being held since 13th January 2025, neither a seizure memo nor a Panchanama was drawn until 25th March 2025.
The Court further noted, "this position is completely unacceptable to the Court" and directed the Customs Department to release the goods subject to reasonable conditions.
The petitioner, Backbone Overseas, approached the Delhi High Court under Articles 226 and 227 of the Constitution of India seeking a writ for the provisional and unconditional release of goods meant for export. The consignment, containing ladies PVC slippers valued at Rs. 9,29,145.6/-, was detained on 13th January 2025 at the Foreign Post Office, New Delhi. The petitioner submitted that the detention was made without providing any reason or issuing a seizure memo.
Repeated communications were sent by the petitioner to the Commissioner of Customs on 20th January and 12th March 2025 requesting the release of the goods and an explanation for their detention. However, no response was received.
The only communication received was a letter dated 20th January 2025 from the Office of the Assistant Commissioner of Customs, stating that the matter had been referred to the Special Intelligence and Investigation Branch (SIIB), ACC Export, New Customs House, IGI Airport, New Delhi.
Petitioner’s counsel argued that as per Circular No. 30/2013 dated 5th August 2013 issued by the Central Board of Excise and Customs (CBIC), "wrongful detention of export goods is not advisable" and any continued detention exceeding three days must be brought to the attention of the Commissioner of Customs.
It was further submitted that despite adherence to these procedural guidelines and repeated efforts by the petitioner, no action was taken by the Customs authorities. Hence, the petitioner was compelled to file the present writ petition.
When the matter came up before the Court on 25th March 2025, an adjournment was sought on behalf of the Customs Department by Mr. Jatin Singh, who submitted that the matter was under consideration by SIIB. On 26th March 2025, it was again submitted that more time was needed.
The Court was informed by Customs Inspector Mr. Suryadeo Kumar that the seizure memo was finally issued on 25th March 2025. The Department contended that there was an apprehension of overvaluation of goods with the intent to unlawfully claim duty drawbacks.
The Court responded by stating that if the Customs Department harbours such apprehensions, they must take appropriate steps, but "the consignment cannot be held up in this manner".
The Circular No. 30/2013 was quoted extensively in the proceedings. The Circular reiterates earlier instructions from Circular No. 01/2011 dated 4th January 2011 and clearly states:
"Provisional release of export goods that are suspected of being mis-declared or where declaration is to be confirmed by further enquiry/test or detained/seized for mis-declaration of quantity/value/description should be given on execution of Bond and suitable security to cover the redemption fine and penalty... Continued detention of export goods in excess of three days must be brought to the notice of the Commissioner of Customs."
The Circular also notes the issue of port congestion and the concern raised by the Inter-Ministerial Committee for boosting MSME exports. It states:
"There can be no justification to hold up export consignments for long periods unless the export goods are prohibited... Essentially genuine exports must be facilitated."
The petitioner further submitted that a summons was issued by the Customs Department on 25th March 2025 demanding documents such as:
- Statement under Section 108 of the Customs Act, 1962.
- Purchase invoices, purchase orders, supplier ledger and transaction details
- Foreign buyer purchase order, past export details with invoices and transactions.
- GSTR-2A/2B and GSTR-3B for January 2025.
- Foreign remittance receipts against previous exports.
The Court noted that action was initiated by the Customs Department only after the filing of the writ petition. It recorded, "The delay in this manner would not be permissible as consignments of the Petitioner and other similarly placed persons are held up, when expedited steps are not taken for clearing of goods."
It also stated that "the delay in issuance of the seizure memo and Panchanama, without any communication, despite repeated requests, is contrary to the principles laid down in the CBIC Circular."
On the Department's contention regarding overvaluation, the Court remarked, "If the said apprehension exists... then suitable steps would have to be taken... but the consignment cannot be held up in this manner."
The Court reiterated that "genuine exports must be facilitated and there should be no delays or hold-ups of export goods" unless the goods are prohibited under law.
The Division Bench directed that:
"Within a period of seven days, the Customs Department shall take a decision in this matter and provisionally release the goods, subject to any reasonable conditions that it deems appropriate on facts."
The Court also directed the petitioner to:
"Appear before the Customs Department on 27th March, 2025, i.e. tomorrow along with all the requisite documents as has been sought in the notice dated 25th March 2025."
With these directions, the writ petition and all pending applications were disposed of.
Advocates Representing the Parties
For the Petitioner: Mr. Chinmaya Seth, Mr. A.K. Seth and Ms. Palak Mathur
For the Respondents: Mr. Jatin Singh
Case Title: Backbone Overseas vs. Assistant Commissioner of Customs, Foreign Post Office, New Delhi and Anr.
Neutral Citation: 2025: DHC:1999-DB
Case Number: W.P.(C) 3711/2025 & CM APPLs. 17331-32/2025
Bench: Justice Prathiba M. Singh, Justice Rajneesh Kumar Gupta
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