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
Supreme Court Issues Notice on Vedanta’s Appeal Against Denial of Interest on Export Duty Refund
The Supreme Court issued notice in a civil appeal filed by Vedanta Limited, challenging a ruling of the Calcutta High Court that denied the company interest on a delayed refund of export duty paid on iron ore exports.
Madras High Court
Madras High Court Quashes CESTAT Order Granting Provisional Release of Imported Goods for Lack of Reasons
The Madras High Court has quashed an order passed by the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai, which had allowed provisional release of imported goods holding that the Tribunal’s order was a non-speaking one and failed to disclose reasons.
No Penalty Against Customs Broker In A Poppy Seeds Smuggling Case Without Clear Findings: Calcutta HC
The Calcutta High Court has set aside penalties imposed on a Customs Broker in a case involving alleged smuggling of poppy seeds concealed in a transshipment consignment, holding that penalties under the Customs Act cannot be sustained without clear findings of knowledge, intention, or abetment.
Final Orders Can’t Be Reopened in Writ Jurisdiction: Calcutta High Court Refuses to Entertain Delayed Challenge to Customs Demand
The Calcutta High Court has dismissed a writ petition challenging a customs demand and earlier adjudication orders, holding that once statutory orders have attained finality and are challenged after an unexplained delay, the Court will not exercise its writ jurisdiction.
Telangana High Court
Customs Dept. Can’t Seize Imported Goods Without Completing Adjudication; Telangana HC Orders Conditional Release
The Telangana High Court while ordering the conditional release of the Second-Hand Printing Machines held that the customs department cannot seize imported goods without completing adjudication.
Lower Court
Customs Duty Evasion | Mumbai Court Grants Bail to Accused in DRI Duty-Free Gold Diversion Case
The Court of the Additional Chief Judicial Magistrate, 19th Court, Esplanade, Mumbai, has granted bail to Ms. Rajpreet Kaur, who was arrested by the Directorate of Revenue Intelligence (DRI), Mumbai, in connection with an alleged case of diversion of duty-free imported gold into the domestic market.
CESTAT
CESTAT Upholds Helicopter Confiscation for Private, Non-Revenue Use Violating Customs Duty Exemption Conditions
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi, has upheld the confiscation of a helicopter imported by Indian Metal and Ferro Alloys Limited (IMFA) for violation of post-import conditions under the customs exemption notification, while simultaneously setting aside penalties imposed on the company’s Vice-Chairman and Senior Manager.
Rs. 1.57-Crore Customs Demand on Cancer Therapy Equipment Quashed Citing Time-Barred Notice: CESTAT
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai has set aside a customs duty demand of Rs. 1.57 crore raised against a Hospital in connection with the import of a “TrueBeam” Linear Accelerator system used for cancer treatment.
Extended Limitation Not Applicable in Natural Rubber Latex Classification Dispute: CESTAT
The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has set aside a customs duty demand of over ₹92 crore raised holding that the show cause notice was barred by limitation and unsustainable in law.
Others
Baggage Rules, 2026: Duty-Free Allowance Raised From Rs. 50K To Rs. 75K, Higher Jewellery Limits for Returning Passengers
The Central Government has notified the Baggage Rules, 2026, bringing major relief to international passengers arriving in India by enhancing duty-free allowances for personal goods, including jewellery and electronic items. The new rules came into force on February 2, 2026, and formally replaced the Baggage Rules, 2016, according to a notification issued by the Central Board of Indirect Taxes and Customs (CBIC).
Ahmedabad Customs Seize Gold Worth Rs. 1.52 Crore from Jeddah Passengers at Airport
The Air Intelligence Unit (AIU) of Customs, Ahmedabad, has seized gold jewellery worth approximately Rs. 1.52 crore from four passengers arriving from Jeddah, following suspicious baggage scans at Sardar Vallabhbhai Patel International Airport.
Ahmedabad Customs Seize Rs. 1.52 Crore Gold Smuggled by Women at Airport
Ahmedabad Customs officials have intercepted multiple gold smuggling attempts at the Sardar Vallabhbhai Patel International Airport, seizing high-value gold jewellery and bullion concealed through innovative methods, officials said on Sunday.
DRI | Surat Businessman Arrested for Alleged Rs. 10 Crore Customs Duty Evasion Through Undervaluation of Imports
The Directorate of Revenue Intelligence (DRI) has arrested a Surat-based businessman in connection with an alleged customs duty evasion case involving nearly Rs. 10 crore. The arrest follows an investigation into the suspected undervaluation of imported glass beads sourced from China.
CBI Registers Bribery Case Against 3 Customs Officials Allegedly Involved In Mizoram Smuggling Nexus
The Central Bureau of Investigation (CBI) has registered a bribery case against three Customs officials, including a retired Superintendent and two Inspectors, for alleged abuse of official position and receipt of illegal gratification in connection with the release of smuggled goods in Mizoram.
Exclusive Visuals Suggest Illegal Transport and Adulteration of Light Diesel Oil Near Mumbai Port
Exclusive visuals that surfaced on social media on Wednesday have raised serious concerns over the alleged illegal transportation, transfer, and possible adulteration of Light Diesel Oil (LDO) in the Mumbai metropolitan region.
