In a notable judgment, the Bombay High Court aided Patanjali in saving ₹62 lakh in customs duty by ensuring that their consignment was assessed just 25 minutes before a tariff hike took effect. This decision underscores the court’s role in addressing the precise timing of customs duty calculations and the importance of accurate documentation in such cases.
Key Details:
- The Incident:
- Patanjali’s consignment was under threat of incurring significantly higher customs duties due to an impending tariff hike. The company argued that the consignment had arrived and was ready for assessment before the new tariffs came into effect.
- Court’s Examination:
- The court meticulously reviewed the timeline of the consignment’s arrival and the customs procedures. It was established that the consignment was indeed in the customs area and ready for assessment 25 minutes before the new tariffs were implemented.
- Ruling:
- Based on the evidence presented, the Bombay High Court ruled in favor of Patanjali, allowing the consignment to be assessed under the old tariff rates. This decision saved the company ₹62 lakh, reflecting the court’s attention to detail and commitment to fair assessment based on accurate timing.
- Implications:
- This ruling highlights the critical nature of timing in customs duty assessments and the importance for companies to ensure precise documentation of their shipments. It also sets a precedent for how similar cases might be handled in the future, emphasizing the need for clear and timely customs procedures.
This decision by the Bombay High Court demonstrates the judiciary’s role in ensuring fairness in commercial operations and the meticulous nature of legal scrutiny in matters involving significant financial implications.