Court Upholds Customs Authority's Discretion in Re-Testing Seized Goods under 2017 Circular
In a significant ruling, the Delhi High Court, comprising Justices Nitin Wasudeo Sambre and Ajay Digpaul, dismissed a petition by M/s Akee International seeking a third re-testing of shawls alleged to contain banned Tibetan antelope hair. The judgment, delivered on April 16, 2026, emphasizes the discretionary power of adjudicating authorities in permitting re-testing under customs law, as per the circular dated July 28, 2017.
The case arose when the petitioner, M/s Akee International, challenged a Show-Cause Notice issued on January 25, 2024, after an initial test by the Wildlife Institute of India indicated the presence of Tibetan antelope hair in the shawls meant for export. A subsequent re-test, requested by the petitioner, yielded inconclusive results, prompting the petitioner to seek a third analysis.
The petitioner argued that principles of natural justice necessitated a third re-test to ensure compliance with the procedures outlined in Public Notice No. 97/2017. They cited similar precedents, including a 2017 judgment by the Allahabad High Court, to bolster their case for re-testing.
However, the court upheld the customs authority's decision, noting that the authority has the discretion to decide on re-testing based on the facts and circumstances. Justice Nitin Wasudeo Sambre, delivering the judgment, noted that the petitioner had already been granted one re-test and that any further testing could not be compelled without substantial justification.
The court found that the petitioner's request for a third re-test was primarily aimed at delaying proceedings, given the lack of action between 2022 and 2025. The bench concluded that the customs authority is best positioned to evaluate the necessity of further testing, as permitted by the 2017 circular, which allows for a second re-test only under specific circumstances.
The judgment reiterates the importance of adhering to established customs procedures and the limited scope of judicial intervention in administrative discretion. While dismissing the petition, the court left open the possibility for the customs authority to consider a third re-test if deemed necessary.
This ruling underscores the balance between ensuring procedural fairness and respecting the discretion vested in customs authorities under Indian law. The decision is likely to influence future cases involving disputes over the testing of seized goods.
Bottom Line:
Customs Law - Re-testing of seized goods - Discretion lies with the adjudicating authority to permit third re-testing under the circular dated 28th July, 2017, if deemed necessary. Mere insistence by the petitioner for third re-testing is insufficient to compel the authority unless a strong justification exists.
Statutory provision(s):
Circular dated 28th July, 2017, Public Notice No. 97/2017, Principles of Natural Justice, Customs Law
M/s Akee International v. Deputy Commissioner of Customs, (Delhi)(DB) : Law Finder Doc id # 2887213
