2026-VIL-1155-DEL-CU
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CUSTOMS High Court Cases

Customs – Finalisation of provisional assessment and release of bank guarantees –Petitioner imported goods and cleared them on provisional assessment under Section 18 of the Customs Act, 1962 on furnishing bonds and bank guarantees. The Petitioner approached the High Court complaining that the provisional assessments had remained unfinalised for more than nine years. It sought release of the bank guarantees and a writ of prohibition against finalisation. During the pendency of the Writ Petition, Orders-in-Original were passed in respect of the remaining Bills of Entry. An Order-in-Original directing absolute confiscation and imposing penalties had already been passed in respect of one Bill of Entry before the Writ Petition was filed, and it was not disclosed - Whether to keep Writ Petition pending in view of the Supreme Court order in GMR Airport Infrastructure Ltd on delay in adjudication - HELD - The direction of the Supreme Court has to be understood in the context in which it was made, namely a challenge to the High Court judgment on delay in adjudication and a large number of connected matters. It cannot be construed as a direction that every proceeding in which delay had at any stage been alleged must be kept pending irrespective of subsequent developments. The present case has travelled considerably beyond the stage of mere pendency of adjudication, as adjudication orders have already been passed. The controversy before the Supreme Court and the controversy which now survives are not identical - No useful purpose would be served by keeping the Writ Petition pending to await the outcome of the proceedings before the Supreme Court - Customs – Maintainability of Writ Petition when Orders-in-Original are passed – Alternative remedy of appeal under Section 128(1) of the Customs Act, 1962 – Non-disclosure of material fact – Whether the Petitioner ought to be relegated to the statutory appellate remedy and whether a writ of mandamus for release of bank guarantees or a writ of prohibition can be granted - HELD - Once an adjudication order has been passed, the Act provides a statutory appellate mechanism under Section 128(1). The adjudication orders are not merely formal orders recording finalisation of provisional assessments, as in one case absolute confiscation was ordered and penalties were imposed. The controversy now involves the legality of adjudicatory determinations, which are ordinarily required to be examined first by the statutory appellate authority. The question of delay is not rendered incapable of examination merely because adjudication orders have been passed, and the Petitioner can urge it before the appellate forum - The relief of mandamus for release of the bank guarantees cannot be considered in isolation from the adjudication orders. A party invoking jurisdiction under Article 226 must make full and candid disclosure of all material facts. The non-disclosure of the Order-in-Original passed before the institution of the Writ Petition is material, since prohibition was sought against finalisation of the very assessment already adjudicated. The Court expressed no opinion on the merits of the orders or on the consequence of the delay, which are left open - The Writ Petition is dismissed as not maintainable in its present form, with liberty to avail the statutory remedy of appeal under Section 128(1).
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