Customs Duty Weekly Flashback (01–07 February 2026) presents a consolidated overview of the key developments in Indian Customs law during the week, featuring important judgments of the Supreme Court and various High Courts, CESTAT and significant circulars, notifications, and policy announcements issued by the Customs authorities, and noteworthy orders and rulings impacting customs duty, valuation, classification, exemption, and import–export procedures.
This weekly roundup serves as a quick and reliable reference for trade, industry, and professionals to stay informed about the latest legal and regulatory changes under the Customs Act, 1962.
Supreme Court
State Liable for Theft of Seized Silver: Supreme Court Upholds Compensation to Bullion Trader
The Supreme Court has dismissed the Special Leave Petition (SLP) filed by the Andhra Pradesh government against a High Court judgment that held the State liable to compensate a bullion trader after seized silver was stolen from police custody. The apex court declined to interfere with the High Court’s findings, thereby allowing the ruling directing payment of compensation or return of silver to attain finality.
Delhi High Court
Absolute Confiscation Without Redemption Can’t Be Challenged After Delay in Filing Appeal: Delhi High Court Dismisses Importer’s Writ
The Delhi High Court has dismissed a writ petition filed by the importer challenging the absolute confiscation of imported betel nuts and denial of the option of redemption, holding that a litigant who fails to pursue the statutory appellate remedy within limitation cannot later invoke writ jurisdiction to reopen the matter.
Whether Valuation of Seized Goods Without Independent Evidence Raises a Question of Law? Delhi High Court Says No
The Delhi High Court has dismissed an appeal challenging the valuation of smuggled foreign-origin cigarettes, holding that no substantial question of law arose for consideration under Section 130 of the Customs Act, 1962.
Madras High Court
Diversion of Duty-Free Raw Cashew Nuts Violates ‘Actual User’ Condition Under Advance Authorisation: Madras High Court
The Madurai Bench of the Madras High Court has ruled that diversion of duty-free imported Raw Cashew Nuts (RCN) to unauthorised units and sale in the local market amounts to a clear violation of the ‘Actual User’ condition under the Advance Authorisation Scheme.
CESTAT
Gold Smuggling | Statements Under Customs Act Can’t Sustain Penalty Without S. 138B Compliance: CESTAT
The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has set aside penalties imposed under the Customs Act, 1962, after holding that the seized gold was not smuggled and that reliance on statements recorded under Section 108 was legally unsustainable in the absence of compliance with Section 138B.
Broken DVD and Retracted Statement Unreliable Evidence: CESTAT Quashes Rs. 40 Lakh Penalty on IRS Officer
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Kolkata Bench, has set aside penalties totaling Rs. 40 lakh imposed on IRS officer Vikash Kumar citing that the department failed to substantiate its allegations with legally admissible evidence, particularly relying on a broken DVD and a retracted statement.
Customs Can’t Reduce Declared Import Value to Levy ADD: CESTAT Quashes Anti-Dumping Duty Demand
The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has quashed a massive anti-dumping duty (ADD) demand exceeding ₹6.5 crore on melamine imports, ruling that Customs authorities cannot reject a higher declared transaction value merely to artificially trigger anti-dumping duty liability.
Mere Violation of CHALR Can’t Justify Penalty Against Customs Broker Without Proving Illegal Import: CESTAT
The Delhi Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) has held that breach of Customs House Agents Licensing Regulations (CHALR), 2004, by itself, cannot sustain penalty under Section 112(a)(i) of the Customs Act, 1962 in the absence of specific allegations and proof of involvement in illegal import.
Smuggling Penalty Not Sustainable Solely On Statements: CESTAT
The Delhi Bench of Customs, Excise & Service Tax Appellate Tribunal (CESTAT) has set aside a Rs. 10 lakh penalty imposed under Section 112(a)(i) of the Customs Act, holding that statements recorded under Section 108 cannot be relied upon to sustain a smuggling-related penalty unless the mandatory procedure under Section 138B is followed.
Customs Dept. Bound To Grant Cash Refund Of CVD, SAD Paid In Pre-GST period, Even If Payment Was Made After GST Rollout: CESTAT
The Ahmedabad Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) has held that Customs department were bound to grant cash refund of Countervailing Duty (CVD) and Special Additional Duty (SAD) paid in the pre-GST period, even if the payment was made after the rollout of GST.
Read More: Service Tax Weekly Flashback: 08 To 14 February 2026
