The Delhi High Court has directed the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) to hear a high-value customs duty dispute on merits, setting aside a 273-day delay in filing the appeal.
The bench of Justice Prathiba M. Singh and Justice Rajneesh Kumar Gupta has imposed a cost of Rs. 50,000 on the appellant as a condition for condonation.
The case pertains to the import of fabric consignments from China and Hong Kong in 2014–2015. The importer had sought amendments to the Bills of Entry to claim exemption benefits under Notification No. 30/2004-CX. However, customs authorities rejected the request, citing that the goods had already been cleared and assessments finalized.
While the firm challenged this before the Commissioner (Appeals) and subsequently before the CESTAT, the latter dismissed the appeal on the ground of excessive delay and inadequate justification. The Tribunal noted that the appeal was filed almost nine months late and lacked a day-wise explanation.
In response, the High Court observed that procedural lapses should not defeat the cause of justice when no mala fides or deliberate delay is proven. It cited the substantial duty demand—approximately ₹1.59 crore, with an additional ₹4 lakh penalty—and emphasized the importance of adjudicating such matters on merits.
Referring to precedent, including the Supreme Court’s ruling in J.M. Ramachandra and Sons v. CEGAT and its own recent judgment in OVT India Pvt. Ltd. v. Commissioner of Customs, the Court stressed that “sufficient cause” must be assessed pragmatically and not with undue technicality.
The delay was thus condoned, subject to payment of Rs. 50,000 as cost to the Customs Department within four weeks. The appeal has been restored to its original position and is now scheduled to be heard by CESTAT on September 10, 2025.
Case Details
Case Title: M/S Siddhi Vinayak Importers Versus Commissioner Of Customs
Case No.: CUSAA 27/2024
Date: 23/07/2025
Counsel For Petitioner: Shikha Sapra
Counsel For Respondent: Anurag Ojha, Sr. Standing Counsel
