Delhi High Court Slams Customs Department for Arbitrary Denial of Goods Release

Customs Department Ordered to Release Goods; Faces Penalty for Harassment of Importers

In a significant ruling, the Delhi High Court has come down heavily on the Customs Department for arbitrary denial of provisional release of imported goods by Techsync and other petitioners. The court, presided by Justices Prathiba M. Singh and Shail Jain, directed the Customs Department to release the goods within two working days, subject to the filing of an Extended Producer Responsibility (EPR) Certificate application as per Public Notice 46/2023.

The case involved the import of goods declared as body massagers, which the Customs Department had previously seized on the grounds that they required clearance under the Medical Devices Rules, 2017, and needed an EPR Certificate under the Battery Waste Management Rules, 2022. However, the court found that these massagers, intended for general wellness and soothing purposes, do not fall under the Medical Devices Rules. Additionally, the court noted that the Customs Department had failed to inform the court about existing provisions allowing the EPR Certificate application to be filed post-release of goods.

The judgment highlighted the arbitrary nature of the Customs Department's actions, especially since similar goods imported by other companies were cleared without objections. The court condemned the harassment faced by the petitioners and imposed a cost of Rs. 25,000 on the Customs Department for each petition, to be deducted from the salary of Mr. Jainendra Jain, Assistant Commissioner of Customs.

The ruling reinforces the fundamental right under Article 19(1)(g) of the Indian Constitution, ensuring that businesses are not subjected to unjust and arbitrary actions by authorities. The case has been scheduled for compliance on December 9, 2025.

Bottom Line:

Provisional release of imported goods cannot be arbitrarily denied by Customs Department when similar goods of other importers have been cleared without objection. Importers can apply for EPR Certificate post-release of goods as per Public Notice 46/2023.

Statutory provision(s): Customs Act, 1962, Battery Waste Management Rules, 2022, Medical Devices Rules, 2017, Constitution of India - Article 19(1)(g)

Techsync v. Superintendent of Customs Siib Acc Imports, (Delhi)(DB) : Law Finder Doc Id # 2812378