The Bombay High Court has issued notice to the Customs Authority for Advance Rulings challenging an advance ruling order on the ground that it is a non-speaking and arbitrary order.
A Division Bench comprising Justice Suman Shyam and Justice Advait M. Sethna heard the matter in Writ Petition challenging an order of the Customs Authority for Advance Rulings (CAAR), which declined to render an advance ruling on the eligibility of EPE Encapsulant Film (EVA+POE+EVA), used in the manufacture of solar photovoltaic modules, for exemption under Notification No. 25/1999-Cus.
The petitioner was represented by Senior Advocate Sujit Ghosh along with a team of advocates. No one appeared on behalf of the respondent authority during the hearing.
The primary relief sought was the quashing of an order dated January 20, 2026, passed by the Deputy Commissioner and Secretary of the Customs Authority for Advance Rulings. According to the petitioner, the impugned advance ruling fails to provide adequate reasons and therefore constitutes a non-speaking order. The company contended that such an order is arbitrary and unsustainable in law.
A speaking order is a fundamental requirement of administrative and quasi-judicial decision-making, as it enables affected parties to understand the basis of a decision and facilitates effective judicial review. The challenge before the High Court raises questions regarding compliance with these principles in the context of advance ruling proceedings under customs law.
After hearing the submissions and perusing the statements made in the writ petition, the Bench directed issuance of notice to the respondent authority. The matter has been made returnable on July 15, 2026. The Court also permitted service through Hamdast and directed the petitioner to furnish copies of the writ petition to the Registry for issuance of notice.
The Bombay High Court’s consideration of the matter could provide important guidance on the extent to which customs advance ruling authorities are required to record reasons while deciding applications.
The matter is scheduled for further consideration before the Bombay High Court on July 15, 2026, when the Customs Authority for Advance Rulings is expected to respond to the allegations raised in the petition.
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