Calcutta High Court Orders Customs Dept. to Decide on Release of Imported Mining Tyres Withheld for Over 8 Months
The Calcutta High Court has directed the Customs Department to conclude its investigation and take a decision regarding the release of goods imported by Adishwar Impex Pvt. Ltd. within a fixed timeframe. The company had approached the Court after its imported consignment of off-the-road (OTR) tyres was withheld for over eight months.
The bench of Justice Raja Basu Chowdhury emphasized that the prolonged seizure of goods—originally imported under Bills of Entry dated 24th September and 16th October 2024—could not be justified solely on the ground that the investigation was “in progress.”
The bench instructed the customs department to finalize the investigation within four weeks of the Court’s order, and if necessary, issue a show cause notice within two weeks thereafter.
The petitioner, Adishwar Impex Pvt. Ltd. had imported tyres purportedly meant for use in mining and excavation vehicles. The company claimed exemption from BIS certification based on a CBEC instruction dated 30th January 2002, arguing that the tyres fell under the “off-road” category. However, the customs authorities seized the goods citing doubts about their classification and potential commercial use in buses and trucks.
Despite a test report from Gujarat Test House stating that the tyres were predominantly for mining purposes—although also usable on roads—the customs department refused to release the goods. This led the petitioner to challenge the seizure under Section 110(1) of the Customs Act, 1962, which allowed seizure of goods considered “prohibited” and liable for confiscation.
The Customs Department had argued that the tyres were misclassified under HSN Code 40118000 (applicable for mining/industrial tyres with lower duty), while they should have been under 40112010 (commercial vehicle tyres with higher duty and licensing requirements). The Court, however, found that the evidence already gathered—including the test report—was sufficient for the authorities to reach a determination.
The Court relied on the Supreme Court’s judgment in Goodyear India Ltd. v. Union of India [1997 (92) ELT 14 (SC)], which held that incidental road use does not make a vehicle tyre subject to road-use regulations if its dominant use is off-road. Applying this rationale, the Calcutta High Court observed that the primary usage of the tyres should guide the applicability of BIS certification and customs classification.
The court directed that the investigation be concluded within four weeks. Show cause notice, if any, to be issued within two weeks thereafter. If proceedings are dropped or goods not released, the petitioner is entitled to apply for provisional release. Provisional release, if granted, to be subject to the highest duty and penalty, with an undertaking to use the tyres only for off-road purposes. The Customs authority also acted on the petitioner’s demurrage waiver application under Rule 6(1)(l) of the Handling of Cargo in Customs Area Regulations, 2009.
Case Details
Case Title: Adishwar Impex Pvt. Ltd. Versus Principal Commissioner Of Customs & Ors.
Case No.: WPO NO.257 OF 2025
Date: 10th July, 2025
Counsel For Petitioner: Sudhir Mehta, Senior Advocate
Counsel For Respondent: Bhaskar Prosad Banerjee, Advocate
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