The Delhi High Court has directed the Customs department to relax stringent conditions imposed on importers for the provisional release of seized imported goods worth over Rs. 43 crore. The seized consignments include perishable food products from the French brand ‘Monin’.
The bench of Justice Prathiba M. Singh and Justice Shail Jain have observed that whether there is under-declaration or not is yet to be adjudicated. At this stage, the goods cannot be permitted to be seized perpetually especially, considering that these are perishable goods. The imports themselves may come to a standstill if the conditions are not relaxed.
The petitioner/assessee, M and V Marketing and Sales Pvt. Ltd., a company engaged in the import and distribution of globally recognized food and beverage products, has been the authorized importer for the French brand ‘Monin’ in India for several years. The company’s imports typically include flavoured syrups and related products, which are used widely in the hospitality and food service sectors.
Until mid-2025, the firm had reportedly faced no major regulatory or customs disputes. However, in June 2025, the Directorate of Revenue Intelligence (DRI), Delhi, initiated an investigation into the company’s imports. Acting on the inquiry, the DRI conducted searches and subsequently seized multiple consignments under seizure memos dated July 1, 2025 and July 7, 2025.
The DRI’s investigation centres on allegations of under-declaration of the value of imported goods. Authorities claim that there exists a commercial arrangement between M and V Marketing and Monin India Pvt. Ltd. (a subsidiary of the French brand’s parent company) under which certain payments for marketing and promotional expenses are being made in India. The Customs department argues that these expenses ought to be included in the transaction value of the goods for customs duty purposes. If accepted, this would increase the assessable value and, consequently, the customs duty payable.
On July 22, 2025, when the matter first came up before the Delhi High Court, the petitioner highlighted the perishable nature of the seized goods and sought their urgent provisional release. They pointed out that they had already deposited ₹3.75 crore as a voluntary payment “under protest” and had also filed an application for provisional release.
The Court directed the Customs Department in Mumbai—who were in possession of the seized consignments—to decide on the provisional release application before August 1, 2025. On July 24, 2025, Customs issued a provisional release order, requiring the company to execute a bond for the entire assessable value of Rs. 43.21 crore. Furnish a bank guarantee/security deposit of Rs. 21 crore to cover the estimated differential duty, possible redemption fine, and penalties.
Case Details
Case Title: M And V Marketing And Sales Private Limited Versus Intelligence Officer DRI
Case No.: W.P.(C) 10489/2025 & CM APPL. 48296/2025
Date: 07th August, 2025
Counsel For Petitioner: Amar Dave, Sr. Adv.
Counsel For Respondent: Anurag Ojha, SSC
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Mariya is the Senior Editor at Juris Hour. She has 5+ years of experience on covering tax litigation stories from the Supreme Court, High Courts and various tribunals including CESTAT, ITAT, NCLAT, NCLT, etc. Mariya graduated from MLSU Law College, Udaipur (Raj.) with B.A.LL.B. and also holds an LL.M. She started as a freelance tax reporter in the leading online legal news companies like LiveLaw & Taxscan.
