Bombay High Court
The Commissioner Of Customs Ns Gen Jnch ... vs B K Rekhatex (Hk) Ltd on 22 January, 2026
Author: B. P. Colabawalla
Bench: B. P. Colabawalla
2026:BHC-OS:2570-DB
1-cuapp-62-2025.doc
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
CUSTOMS APPEAL NO.62 OF 2025
WITH
INTERIM APPLICATION (L)NO.1342 OF 2026
IN
Digitally
signed by
SMITA
SMITA
RAJNIKANT
CUSTOMS APPEAL NO.62 OF 2025
RAJNIKANT JOSHI
JOSHI Date:
2026.01.29
16:54:57
+0530
The Commissioner of Customs
NS-Gen, JNCH, NhavaSheva .. Appellant.
Versus
B K Rekhatex (HK) Ltd., .. Respondent.
Mr. Jitendra Mishra with Niyati Mankad, Priyanka Singh and
Ritesh Dube, Advocates for the Appellant.
Mr. Prakash Shah, Sr.Advocate with Mr. Mihir Mehta and Kshitij
Kasi Viswanath i/b. PDS Legal, Advocates for the Respondent.
CORAM: B. P. COLABAWALLA &
FIRDOSH P. POONIWALLA, JJ.
DATE: JANUARY 22, 2026
P. C.
1 Being aggrieved by the Final Order No. 85891/2025 dated
6th June, 2025, passed by the Learned Customs, Excise and Service Tax Appellate Tribunal ("CESTAT"), the Appellant, Commissioner of Customs, has filed the above appeal under Section 130 of the Customs Page 1 of 18 JANUARY 22, 2026 S.R.JOSHI ::: Uploaded on - 29/01/2026 ::: Downloaded on - 30/01/2026 21:39:24 ::: 1-cuapp-62-2025.doc Act, 1962, on a number of questions of law stated in paragraph 6 of the memorandum of appeal, terming them to be substantial questions of law.
2 In the above appeal, the dispute pertains to 200.58 Metric Tons of Copper Wire Rod 8MM Electrolytic Tough Pitch Copper Wire Road as per ASTM B49 ("the subject goods") exported by Union Copper Rod LLC, UAE ("Union Copper") under four Bills of Lading bearing Nos. AGNJEANSA00465 dated 20.11.2019, ASCOKHLNSA1900054 dated 01.12.2019, ASCOK14 ptHLNSA1900063 dated 07.12.2019 and MSLJEANSA2521 dated 04.12.2019.
3 The Respondent claims to have paid the price of the subject goods though four letters of credit established in the month of December 2019.
4 The bills of lading mentioned the Consignee "to order" and the Consignor had made a blank endorsement on each of the four bills of lading. M/s Shine Metal Industries ("Shine Metal"), which was to purchase the subject goods from the Respondent, was shown as the notified party and not a consignee.
Page 2 of 18JANUARY 22, 2026 S.R.JOSHI ::: Uploaded on - 29/01/2026 ::: Downloaded on - 30/01/2026 21:39:24 ::: 1-cuapp-62-2025.doc 5 The agent of the Shipping Line in India filed the Import General Manifest ("IGM") bearing Nos. 2239803, 2240493, 2240974 and 2241062, as required under Section 30 of the Act, indicating M/s Shine Metal as the Importer.
6 M/s Shine Metal filed 4 Bills of Entry bearing Nos. 5862748 dated 28.11.2019, 5987411 dated 07.12.2019, 6005868 dated 09.12.2019 and 6021988 dated 10.12.2019, for home consumption without the original documents, including Bills of Lading.
7 The Respondent claims that the original documents, including original bills of lading, were sent to M/s Shine Metal, through its Bank from Hong Kong. According to the Respondent, M/s Shine Metal failed to retire the documents and pay the price of the subject goods, and hence, the original documents were returned to the Respondent's Banker by the Banker of M/s Shine Metals. According to the Respondent, M/s Shine Metals never paid the price of the subject goods and the Respondent continues to hold the original bills of lading and is the owner of the subject goods.
Page 3 of 18JANUARY 22, 2026 S.R.JOSHI ::: Uploaded on - 29/01/2026 ::: Downloaded on - 30/01/2026 21:39:24 ::: 1-cuapp-62-2025.doc 8 The Respondent came to know that the Directorate of Revenue Intelligence ("DRI") carried out an extensive search at the premises of M/s Kerry Indev Logistics, where the subject goods in question are docked. The subject goods valued at Rs. 8,85,12,304 were seized by the officers of DRI vide seizure memo dated 09.01.2020.
9 It is the case of the Respondent that in view of the failure of M/s Shine Metals to pay the price of the subject goods, the Respondent had initially agreed to sell the said goods to one Sagun Copper Conductors Private Limited, Hubballi ("Sagun Copper"). To enable the said Sagun Copper to file Bills of Entry and clear the goods for home consumption, the Shipping Line, at the request of the Respondent, amended the 14 pt Bills of Lading by naming Sagun Copper as "the Consignee".
10 Be that as it may, the DRI issued a show cause notice dated 01.12.2020 to M/s Shine Metal and others seeking, inter alia, to confiscate the subject goods. Undisputedly, the said notice was not addressed or issued to the Respondent by the DRI. The show cause notice proceeded on the assumption that M/s. Shine Metal is the importer of the subject goods.
Page 4 of 18JANUARY 22, 2026 S.R.JOSHI ::: Uploaded on - 29/01/2026 ::: Downloaded on - 30/01/2026 21:39:24 ::: 1-cuapp-62-2025.doc 11 Accordingly, the Respondent filed Writ Petition No. 2129 of 2021 before this Court, challenging the action of the DRI in seizing the subject goods. This Court, vide its Order and Judgement dated 25.03.2022, inter alia, held that the relief claimed in the writ petition is dependent on the decision of the issue of title of goods, which was remanded to the Department to consider. Hence, the Writ Petition was dismissed on the basis that it involved disputed questions of fact.
12 Subsequently, in light of the aforesaid Order and Judgement dated 25.03.2022, the Respondent, through its Advocate's letter dated 19.07.2022, made detailed representations before the Department claiming that it was rightfully entitled to the said goods in question. The Respondent, through its Advocate's email and letter dated 22.12.2022, also requested the Department to place the Appellant's case before the Commissioner to decide upon the title of the goods.
13 Without granting any opportunity of hearing, the Deputy Commissioner passed the Order-in-original dated 28.12.2022, rejecting the request for IGM amendment and for change in consignee name.
Page 5 of 18JANUARY 22, 2026 S.R.JOSHI ::: Uploaded on - 29/01/2026 ::: Downloaded on - 30/01/2026 21:39:24 ::: 1-cuapp-62-2025.doc 14 Aggrieved by the Order-in-Original dated 28.12.2022, the Respondent preferred an Appeal under Section 128(1) of the Act before the Learned Commissioner (Appeals).
15 The Learned Commissioner (Appeals), vide his order-in-
appeal dated 26.04.2023, held that (i) the issue of ownership stands resolved undisputedly, in the hands of the Respondent; and (ii) the original authority ought to have allowed the amendment to the IGM in favour of the Consignee.
16 The order-in-appeal dated 26.04.2023 appears to have been reviewed and accepted by the concerned Committee of Commissioners, JNCH, Mumbai.
17 Due to the passage of time and ongoing litigation, M/s Sagun Copper expressed its inability to purchase the imported goods.
One Nikom Copper Private Limited ("Nikom Copper") had expressed its willingness to purchase the goods in question.
18 Accordingly, the Customs Broker, on behalf of Nikom Copper, vide his letters dated 30.05.2023, 29.08.2023, 30.08.2023 and 20.09.2023, requested the Deputy Commissioner to amend the IGM Page 6 of 18 JANUARY 22, 2026 S.R.JOSHI ::: Uploaded on - 29/01/2026 ::: Downloaded on - 30/01/2026 21:39:24 ::: 1-cuapp-62-2025.doc and cancel the bills of entry of the previous importer and also provided an NOC issued by M/s Sagun Copper.
19 Since no response was received by the Respondent or its Advocates for amendment to the IGM, Nikom Copper expressed its inability to purchase the imported goods, and accordingly, the Respondent has now approached one M/s G.K Wire Industries.
20 Basis the revised BLs provided by 2 Shipping Lines, manual amendment in Item No. 88 of IGM No. 2240493 dated 30.11.2019 for BL ASCOKHLNSA1900054 and Item No 130 of IGM No. 2241062 dated 07.12.2019 for BL ASCOKHLNSA1900063 has been carried out by the department and the Consignee's name and address was amended to M/s G. K. Wire Industries under the provisions of Section 30 of the Customs Act, 1962.
21 Vide letters dated 10.12.2024 and 12.12.2024, the Customs Broker of M/s G.K. Wire Industries requested the Deputy Commissioner to amend the consignee's name from M/s Sagun Copper to M/s G.K. Wire Industries in Bills of Entry Nos. 5987411 dated 07.12.2019, 6021988 dated 10.12.2019 and amend the name of the Page 7 of 18 JANUARY 22, 2026 S.R.JOSHI ::: Uploaded on - 29/01/2026 ::: Downloaded on - 30/01/2026 21:39:24 ::: 1-cuapp-62-2025.doc customs broker from M/s H. G. Mehta and Co. Pvt. Ltd. to M/s A. S. Vasan and Sons (Bombay).
22 The Assistant Commissioner, vide letter dated 06.03.2025, directed the Customs Broker of M/s G. K. Wire Industries to produce all relevant documents for amendment.
23 In the meantime, the Respondent approached the CESTAT for the reliefs stated therein and for permitting the new buyer, M/s G. K. Wire Industries, to file Bill of Entry for the subject goods and allow clearance thereof on payment of duty.
24 Vide the impugned Order and Judgment dated 06.06.2025, the CESTAT held thus:
"19. In light of the above, there is no scope for perspective of the impugned order as cause of grievance to the appellant. Any action that proceeds on a different assumption is, in the light of no challenge to the impugned order, at the peril of consequence of patent breach of judicial discipline. The impugned order, clear as it is, is not ambivalent and does not to be interfered with."
25 The present appeal is filed by the Department against the above Order of the CESTAT.
Page 8 of 18JANUARY 22, 2026 S.R.JOSHI ::: Uploaded on - 29/01/2026 ::: Downloaded on - 30/01/2026 21:39:24 ::: 1-cuapp-62-2025.doc 26 We have heard Mr. Jitendra Mishra, the learned Counsel for the Appellant, and Mr. Prakash Shah, the learned Senior Counsel for the Respondent.
27 Mr. Mishra submitted that the Learned CESTAT has erred in treating the amendment to the IGM as a procedural act under Section 30(3) of the Customs Act, ignoring the CBEC Circular No. 14/2017-Cus dated 11.04.2017.
28 Mr. Mishra further submitted that ownership of the subject goods is under dispute and requires adjudication.
29 Mr. Mishra further submitted that CESTAT misconstrued the limited scope of the Order-in-appeal dated 26.04.2023, which permitted only amendment to the IGM without affecting the Bills of Entry filed by M/s Shine Metal, seizure of goods and other liabilities of M/s Shine Metal.
30 Mr. Mishra produced a copy of the Order No. 83/2025-26/ Commr./ NS-III/ CAC/ JNCH dated 10.06.2025 passed by the Commissioner of Customs, JNCH, III, whereby, inter alia, the subject goods were confiscated.
31 Mr. Mishra submitted that the Respondent cannot be allowed to clear the goods as the Respondent has no title to it.
Page 9 of 18JANUARY 22, 2026 S.R.JOSHI ::: Uploaded on - 29/01/2026 ::: Downloaded on - 30/01/2026 21:39:24 ::: 1-cuapp-62-2025.doc 32 Mr. Mishra submitted that amendment of bills of entry and detention waiver certificate were not the subject matter of proceedings before the lower authority and no such relief can be granted.
33 Mr. Mishra submitted that if the goods are allowed to be cleared on payment of duty, then the Respondent be directed to pay interest on the duty amount.
34 On the other hand, Mr. Shah submitted that the Appellant cannot be said to have been aggrieved by the order of the CESTAT impugned in this appeal and in any event no substantial question of law arises in the present appeal.
35 Mr. Shah submits that the ownership of the Respondent of the subject goods is no longer in dispute in view of Order-in-appeal dated 26.04.2023 passed by the Commissioner of Customs (Appeals).
36 Mr. Shah further submitted that the Department has accepted the said order-in-appeal of the Learned Commissioner of Customs (Appeals) as no appeal is filed by the Department before the CESTAT against the said order of the Commissioner of Customs (Appeals).
37 Mr. Shah further submitted that the Respondent has now agreed to sell the subject goods to one M/s G. K. Wire Industries, who has given its consent to purchase the same and has approached the Page 10 of 18 JANUARY 22, 2026 S.R.JOSHI ::: Uploaded on - 29/01/2026 ::: Downloaded on - 30/01/2026 21:39:24 ::: 1-cuapp-62-2025.doc Department for amendment of the IGM.
38 Mr. Shah further submitted that the Department has accepted the said M/s G. K. Wire Industries as the buyer of the subject goods, and in compliance with the Order of the Learned Commissioner of Customs (Appeals) dated 26.04.2023, amended the IGM in respect of two consignments out of four consignments. Mr. Shah relied upon letter dated 18.07.2025, of the Assistant Commissioner of Customs, Import Noting, JNCH, in support of his above submissions.
39 Mr. Shah submitted that the said M/s G. K. Wire Industries are ready and willing to clear the goods for home consumption on payment of applicable duty of customs without claiming benefit of Notification No. 25/1999-Cus dated 28.02.1999.
40 Mr. Shah submitted that the goods could not have been confiscated without notice to the Respondent in terms of Sections 124 and 125 of the Customs Act.
41 Mr. Shah further submitted that the Respondent is ready to secure the proportionate redemption fine by depositing Rs. 1,47,00,000.00 in cash in this Court within 15 days from the uploading of this order.
42 Mr. Shah further submitted that no interest is payable on the duty that would be reassessed by the Appellant. M/s Shine Metal Page 11 of 18 JANUARY 22, 2026 S.R.JOSHI ::: Uploaded on - 29/01/2026 ::: Downloaded on - 30/01/2026 21:39:24 ::: 1-cuapp-62-2025.doc had claimed the exemption from payment of duty. The bills of entry filed by M/s Shine Metal have to be reassessed by the Appellant as benefit of exemption claimed by M/s Shine Metal from payment of basic customs duty is disputed by the Appellant. The Respondent has submitted that the subject goods will be cleared without claiming benefit of any exemption and by paying duty at the applicable rate. In terms of Section 47(2) of the Customs Act, duty is to be paid within one day from the date on which the bill of entry is returned to the Importer by the Proper Officer for payment of duty in case of reassessment.
43 Mr. Shah further submitted that no interest is payable on the Integrated Goods and Service Tax in view of the judgment of this Court in the case of A. R. Sulphonates Private Limited-2025 (393) ELT 246 (Bom).
44 Mr. Shah further brought to our attention that post the hearing before this Court on 14.01.2026, the Respondents carried out amendments to other 2 IGM Nos 2239803 and 2240974 corresponding to the Bills of Lading Nos. AGNJEANSA00465 dated 20.11.2019 and MSLJEANSA2521 dated 04.12.2019 respectively.
45 In view of the submissions made by both sides and considering the fact that the IGM has been amended in respect of all the 4 Bills of Lading in dispute, it is not necessary for us to examine whether the Appellant can be said to have been aggrieved by the impugned order of the CESTAT or whether the above appeal raises a Page 12 of 18 JANUARY 22, 2026 S.R.JOSHI ::: Uploaded on - 29/01/2026 ::: Downloaded on - 30/01/2026 21:39:24 ::: 1-cuapp-62-2025.doc substantial question of law or that the subject goods were rightly confiscated or not. The contentions of both sides are kept open.
46 We are of the opinion that let the Respondent pay or cause to be paid an amount equal to interest on the amount of basic customs duty to be determined by the Appellant pursuant to this order "under protest" along with the duty. The said amount [towards interest] shall be treated as a deposit with the Appellant. The Respondent shall be permitted to contest the payment of interest before the CESTAT in the appeal proposed to be filed by the Respondent. In the event, the appeal filed by the Respondent is allowed, the Appellant shall refund the amount equal to interest paid by the Respondent as set out hereinafter.
47 In view of the judgment of this Court in the case of A. R. Sulphonates Private Limited-2025 (393) ELT 246 (Bom), no interest is payable on the IGST component.
48 We are of the view that this appeal can be disposed off by giving the following directions, which would protect the interest of both sides:
(a) Subject to the Respondent herein depositing Rs.
1,47,00,000.00 in cash towards redemption fine in this Court within 15 days from the uploading of this order, the Appellant shall permit clearance of 200.058 MTs of Copper Wire to M/s G. K. Wire Industries valued at Rs. 8,85,12,304 on payment of the applicable Basic Customs Duty, Page 13 of 18 JANUARY 22, 2026 S.R.JOSHI ::: Uploaded on - 29/01/2026 ::: Downloaded on - 30/01/2026 21:39:24 ::: 1-cuapp-62-2025.doc applicable interest thereon, and the applicable IGST, without claiming exemption under Notification No. 25/1999-Cus dated 28.02.1999.
(b) On the Respondent depositing the amount of Rs.1,47,00,000/-, as aforesaid, the Appellant shall, within 7 days, carry out the amendment in the four Bills of Entry (set out hereafter) filed by the M/s. Shine Metal Industries by substituting the name of M/s. G.K. Wire Industries as the importer, and its customs broker as A.S. Vasan and Sons (Bombay). The details of the aforesaid four Bills of Entry in which the amendment is to be carried out are as under:-
(i) Bill of Entry No. 5987411 dated 07.12.2019 corresponding to Bill of Lading No. ASCOKHLNSA1900054 dated 01.12.2019 in IGM 2240493 dated 30.11.2019,
(ii) Bill of Entry No. 6021988 dated 10.12.2019 corresponding to Bill of Lading No. ASCOKHLNSA1900063 dated 07.12.2019 in IGM 2241062 dated 07.12.2019,
(iii) Bill of Entry No. 5862748 dated 28.11.2019 corresponding to Bill of Lading No. AGNJEANSA00465 dated 20.11.2019 in IGM No. 2239803 dated 22.11.2019; and
(iv) Bill of Entry No. 6005868 dated 09.12.2019 corresponding to Bill of Lading No. Page 14 of 18 JANUARY 22, 2026 S.R.JOSHI ::: Uploaded on - 29/01/2026 ::: Downloaded on - 30/01/2026 21:39:24 ::: 1-cuapp-62-2025.doc MSLJEANSA2521 dated 04.12.2019 in IGM No. 2240974 dated 06.12.2019.
(c) Pursuant to the above amendment, the Appellant shall provide to the Respondent assessed Bills of Entry presented online on the customs automated system within 3 days of the amendment and permit the importer to pay the Basic Customs duty, without claiming any exemption, along with an amount equal to the interest as may be computed by the Appellant, under protest, as well as the IGST [without interest] and allow the clearance of the goods imported under the above 4 Bills of Entry within 3 days of payment of the amounts mentioned herein.
(d) The Appellant shall issue a certificate for waiver of detention charges and demurrage in terms of Handling of Cargo in Customs Areas Regulations, 2009 and Sea Cargo Manifest and Transshipment Regulations, 2018 and shall assist the Respondent or Messrs. G. K. Wires in the implementation of the detention and demurrage waiver certificate to be issued pursuant to this order.
(e) The Respondent is permitted to file an appeal against the Order in Original No. 83/2025-26/ Commr./ NS-III/ CAC/ JNCH dated 10.06.2025 before the CESTAT, Mumbai, within 4 weeks from the uploading of this order, challenging Page 15 of 18 JANUARY 22, 2026 S.R.JOSHI ::: Uploaded on - 29/01/2026 ::: Downloaded on - 30/01/2026 21:39:24 ::: 1-cuapp-62-2025.doc the confiscation of 200.058 MTs of Copper Wire. In this appeal, the Respondent can also raise the issue that it is not liable to pay any interest on the BCD determined by the Appellant.
(f) The deposit referred to in paragraph (a) above, as well as the interest paid under protest by the Respondent, shall be subject to the outcome of the proposed appeal that the Respondent may file against the Order in Original No. 83/2025-26/ Commr./ NS-III/ CAC/ JNCH dated 10.06.2025 before the CESTAT, Mumbai.
(g) In case the appeal is filed within 4 weeks from the date of uploding of this Order, the CESTAT shall decide the appeal on merits without going into the question of limitation. In other words, if the appeal is filed within 4 weeks of uploading of this order, the delay is hereby condoned.
(h) In case no appeal is filed within 4 weeks from the uploading of this order, the Appellant shall be permitted to withdraw Rs. 1,47,00,000 [to be deposited by the Respondent] within 7 days of expiry of four weeks from the uploading of this order.
(i) In case, the Respondent fails to deposit Rs. 1,47,00,000/-
within 15 days, the subject goods shall vest in Government of India in terms of Section 126 of the Customs Act.
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(j) In case the amount is deposited by the Respondent, the Learned Prothonotary and Senior Master to invest the same in interest bearing fixed deposit/s, initially for a period of 365 days, and thereafter to be renewed from time to time, and the same shall abide by any orders passed by the CESTAT in the appeal proposed to be is filed by the Respondent challenging the Order-in-Original No. 83/2025-26/ Commr./ NS-III/ CAC/ JNCH dated 10.06.2025 passed by the Commissioner of Customs, JNCH, III.
(k) In case the Respondent succeeds on the issue of interest paid under protest on the basic Customs duty in the Appeal proposed to be filed before the CESTAT, Mumbai, the Appellant shall refund the amount paid under protest towards interest, to the Respondent or G.K. Wire Industries on the expiry of the Appeal period of challenging the order of CESTAT.
49 It is clarified that we have not examined the merits of the case and this order is restricted only to clearance of 200.58 Metric Tons of Copper Wire Rod 8MM Electrolytic Tough Pitch Copper Wire Road as per ASTM B49 of which the Respondent is the owner and without in any manner affecting the liability of all other Noticees, including M/s Shine Metals, arising out of the Order-in-Original dated 10.06.2025. In other words, none of the Noticees shall be able to contend that they are Page 17 of 18 JANUARY 22, 2026 S.R.JOSHI ::: Uploaded on - 29/01/2026 ::: Downloaded on - 30/01/2026 21:39:24 ::: 1-cuapp-62-2025.doc discharged or derive any benefit pursuant to this order.
50 Liberty to apply in the event of non-compliance and/or any clarification required.
51 In view of the disposal of this Appeal, nothing survives in the above Interim Application and it is disposed of accordingly.
52 This order will be digitally signed by the Private Secretary/ Personal Assistant of this Court. All concerned will act on production by fax or email of a digitally signed copy of this order.
[FIRDOSH P. POONIWALLA, J.] [B. P. COLABAWALLA, J.] Page 18 of 18 JANUARY 22, 2026 S.R.JOSHI ::: Uploaded on - 29/01/2026 ::: Downloaded on - 30/01/2026 21:39:24 :::