Bombay High Court Directs Customs to Pass Speaking Orders on Contested Camera Imports.


09 September 2025 Civil Writ Petition >> Civil & Consumer Law   |   Custom Duty >> Tax Laws  

Bombay High Court has directed Customs Authorities of Nhava Sheva to pass reasoned speaking orders on 17 Bills of Entry of a importer of digital cameras, holding that importers cannot be disentitled from their right to claim exemption and consequent remedies merely because their submissions were made under protest.

The case of Canon India Pvt. Ltd. v/s The Union of India Through Secretary, Department of Revenue, Ministry of Finance & Another was filed after the petitioner company imported lots of "Digital Still Image Video Cameras" during September 2014 to January 2015, claiming exemption from Basic Customs Duty under Notification No. 25/2005. Customs officials, however, declined to accept the exemption by resorting to an explanation to the notification and were not willing even to accept Bills of Entry filed with exemption claims.

Faced with mounting demurrage, the importer lodged 17 Bills of Entry under protest, paying duty in full without prejudice to its claim. Nine of them were paid without any speaking order and eight others were provisionally levied, once again without reasons.
 
 
 
 

The importer argued that without speaking orders, its right of appeal statutorily under the Customs Act was being hindered. The Customs Department responded that since the importer had filed the Bills of Entry without claims for exemption, there was no requirement to issue the said orders.

Declining this argument, the Court held that Customs cannot avoid their responsibility by failing to pass an order reasoned when claims under protest are raised. Drawing upon earlier Madras High Court judgments in Ingram Micro and Micromax Informatics, the court reaffirmed that protest entries transfer the importer's right of exemption claims, and authorities need to record their reasons in speaking orders.

The Court noted that without these orders, the importer is deprived of an efficacious appellate remedy. It therefore granted the writ petition and ordered Customs to pass and communicate speaking orders within three months after hearing the petitioner. What is striking in the order is that the Court specifically stated it was not determining the issue on merits of the claim for exemption, reserving all contentions for determination in the future.

This decision reinforces the procedural safeguards of importers, reaffirming the fact that the natural justice and fair hearing requirement cannot be circumvented by administrative inactivity.


Section 17, Customs Act - 1962  

Customs Act, 1962