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Supreme Court Upholds Rs. 50 Lakh Cost on Customs Dept. for Delay in Releasing Kiwi

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The Supreme Court has upheld the order of the Punjab and Haryana High Court by which  Rs. 50 lakh cost was imposed on customs dept. for delay in releasing 89,420 kg of kiwi.

The bench of Justice J.B. Pardiwala and Justice R. Mahadevan heard Advocate Sourabh Kapoor who represented importer and dismissed the Special Leave Petition filed by the Customs Department challenging the order directing the department to pay the importer compensation calculated conservatively of Rs. 50 lakhs as the Kiwi worth weighing 89,420 kilograms were destroyed on account of delay in release by the respondents. 

The case arose when the petitioner, engaged in importing food items, brought four containers of kiwi from R.A. Logistics & Distribution LLC, Dubai, destined for ICD Ludhiana. Despite repeated requests to file a manual bill of entry under Section 46 of the Customs Act, citing the fruit’s short shelf life, customs authorities refused. The Import General Manifest (IGM) amendment was also denied, resulting in the fruit perishing in storage.

The court found that customs had the statutory power under Section 30(3) to amend the IGM but failed to act. Since the goods had been destroyed, retaining import duty would amount to unjust enrichment, the bench observed.

Case Details

Case Title: UNION OF INDIA & ORS. VERSUS M/S PRENDA CREATIONS PVT LTD & ANR. 

Case No.: Special Leave to Appeal (C) No(s). 19780/2025

Date:  08-08-2025

Counsel For  Petitioner: N.venkataraman, A.S.G.

Counsel For Respondent:  Sourabh Kapoor, Adv.

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Mariya Paliwala
Mariya Paliwalahttps://www.jurishour.in/
Mariya is the Senior Editor at Juris Hour. She has 7+ 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 her career as a freelance tax reporter in the leading online legal news companies.

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