Gkem International PVT LTD & Ors. vs. Commissioner Of Customs Icd Ppg And Other Icds
Held
The Court held that the Order-in-Original was passed within the statutory period prescribed under Sections 28(9) and 28(9A) of the Customs Act, 1962, as the limitation period recommenced upon the dismissal of the petitioner's prior writ petition. The Court also declined to exercise its discretionary writ jurisdiction due to the availability of an alternative statutory remedy and the petitioners' conduct.
Facts
The petitioners imported duty-free raw materials under Advance Authorisation Licences for export after value addition. An investigation revealed they diverted the duty-free imported raw material into the domestic market without fulfilling the export obligation, leading to a Show Cause Notice and an Order-in-Original demanding differential customs duty of approximately Rs. 20.18 crore.
Key Issues
The key legal issue was whether the Show Cause Notice and subsequent Order-in-Original were time-barred under Section 28(9) of the Customs Act, 1962, considering the period during which prior litigation was pending. Another issue was the exercise of discretionary writ jurisdiction given the availability of an alternative remedy and the petitioners' conduct.
Sections Cited
Section 28(9), Section 28(9A), Section 28(4), Section 28AAA, Section 108
AI-generated summary — verify with the full judgment below
W.P.(C) 5796/2025 $~ * IN THE HIGH COURT OF DELHI AT NEW DELHI %
Judgment reserved on: 19.08.2026 Judgment pronounced on: 07.09.2026 Judgment uploaded on: 07.09.2026 # CNR No. DHC010260632025 + W.P.(C) 5796/2025 & CM APPL. 26401/2025 GKEM INTERNATIONAL PVT LTD & ORS. ....Petitioner Through: Mr. Deepak Gandhi and Ms. Ida Bhatnagar, Advs.
versus COMMISSIONER OF CUSTOMS ICD PPG AND OTHERS ICDS
.....Respondent Through: Mr. Arjun Malik, SSC along with Ms. Mayuri Makhija, Adv. for R-1. CORAM: HON'BLE MR. JUSTICE ANIL KSHETARPAL HON'BLE MS. JUSTICE SHAIL JAIN J U D G M E N T ANIL KSHETARPAL, J.
By way of the present Petition, the Petitioners seek declaration of the Show Cause Notice (SCN) dated 24.06.2022, as non-est in view of Section 28(9) of the Customs Act, 1962 [hereinafter referred to as „Act of 1962‟]. Additionally, in the aforesaid backdrop, the Petitioners also pray for recall of the Order-in-Original
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