Blue Fludics PVT LTD vs. Union Of INDIA & Ors.

Held

The Court directed the Respondents to communicate the details of any pending liability to the Petitioner within one week. Upon receiving this information, the Petitioner was to clear the said liability expeditiously, if found payable. Subsequently, the Respondents were to consider the Petitioner's request for the surrender of the Customs Bonded Warehouse Licence and pass appropriate orders within one month of the liability being cleared. The Court did not decide on the Petitioner's entitlement to the writ of mandamus in principle but provided a procedural path for resolution. The ratio decidendi is that a licence surrender request can be processed once all outstanding liabilities are cleared, and authorities must facilitate this process by clearly communicating any pending dues.

Facts

The Petitioner, Blue Fludics Pvt Ltd, sought a Writ of Mandamus to direct the Respondents to accept the surrender of its Customs Bonded Warehouse Licence No. 001/2016 for the Okhla Warehouse. The Petitioner operated two bonded warehouses, one in Faridabad and one in Okhla. Searches were conducted at both warehouses on July 6, 2020, and July 9, 2020, respectively, where imported alcoholic beverages were found. The Okhla Warehouse licence was suspended on October 19, 2020. The Petitioner claims the investigation concluded on July 23, 2025, and that it paid a total of Rs. 54,49,781/- towards duty, interest, and penalty. The Respondents stated that certain liabilities were still pending and that the surrender request would be considered upon clearance of these liabilities.

Key Issues

1. Whether the Petitioner is entitled to a Writ of Mandamus directing the Respondents to accept the surrender of the Customs Bonded Warehouse Licence for the Okhla Warehouse, considering the pending liabilities. The Petitioner argued that the investigation had concluded and all dues had been paid, entitling them to surrender the licence. The Respondents contended that certain liabilities were still outstanding and that the surrender could only be processed after these liabilities were cleared. The Respondents did not cite any specific provisions or precedents in their argument regarding the pending liabilities.