Case Details: Victory Ventures Inc. vs. Union of India (2026) 42 Centax 131 (Bom.)
Judiciary and Counsel Details
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- Aarti Sathe & G.S. Kulkarni, JJ.
- Shri Abhishek A. Rastogi with Ms Pooja M. Rastogi, Ms Meenal Songire, Ms Aarya More, for the Petitioner.
- Shri Vijay Kantharia with Ms Sangeeta Yadav, for the Respondents.
Facts of the Case
The importer, a small entrepreneur, imported a small consignment. This consignment was seized on account of alleged misclassification and misdeclaration of value. Subsequently, an adjudication order was passed without serving any show cause notice on the importer, on the ground that such notice had been waived by him. The importer submitted that the goods had completely deteriorated and could not fetch any value in the market. Therefore, the department was free to deal with the goods and recover any amounts from their sale. The importer challenged the adjudication order. The matter was then placed before the High Court.
High Court Held
The High Court held that the adjudication order could not be sustained because it was passed without serving a show-cause notice on the importer. It was further observed that the importer was a small entrepreneur, and the entire exercise of importing the small consignment had been rendered a sheer waste solely due to the classification issue. The Court also noted that the concerned officers were required to adopt an approach that would enable small businesses to operate effectively while simultaneously protecting the department’s interests. Accordingly, the adjudication order was quashed. The department was directed to issue a demurrage waiver certificate. It was also instructed to appropriate any amount realised from the sale of the goods and to pay any surplus amount, if applicable, to the importer towards warehousing charges.
List of Cases Cited
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- Victory Ventures Inc. v. Union of India — Writ Petition No. 13178 of 2023, decided on 13-2-2024 by Bombay High Court — Followed [Paras 1, 8]
