M/S Pradeep Industries & Ors. vs. Union Of INDIA & Ors.

Held

The Court held that it lacked territorial jurisdiction to entertain the writ petition. The seizure of goods occurred at ICD, Dadri, Uttar Pradesh, and the proceedings were pending before the Commissioner of Customs, Noida. The Court found that not even a minuscule part of the cause of action had arisen within the territorial jurisdiction of the Delhi High Court. The contentions raised by the petitioner regarding the classification of goods, the reliance on the Chartered Engineer's certificate, and the alleged contravention of CBIC policy were issues to be considered by the Commissioner of Customs, Noida, not by the Delhi High Court. The Court distinguished the cited precedents, Sterling Agro Industries Ltd. and Bakshish Ahmad, finding them not applicable to the present facts. The Court relied on its own decision in M/s Meever India Private Limited, which held that despite challenging a circular issued in Delhi, the issue regarding rejection of NOC related to business activities elsewhere, and no part of the cause of action had arisen within Delhi's jurisdiction. Consequently, the petition was dismissed for lack of territorial jurisdiction. The petitioners were granted liberty to avail remedies before the appropriate forum.

Facts

The petitioners, M/s Pradeep Industries & Ors., filed a writ petition challenging the seizure memos dated May 23, 2025, June 4, 2025, and July 3, 2025, concerning imported designer and decorative stainless-steel coils from China. The goods were seized at ICD, Dadri, Uttar Pradesh, under the jurisdiction of the Commissioner of Customs, Noida. The seizure was based on the contention that the goods were misclassified under Customs Tariff Heading (CTH) 73269060 and required BIS certification under IS 6911 as per the Steel Control Order. The petitioners sought setting aside of the seizure, release or provisional release of the goods, and a direction to the Union of India and CBIC to instruct the seizing authority not to rely on a Chartered Engineer's certificate for classification. The respondents raised a preliminary objection regarding territorial jurisdiction.

Key Issues

1. Whether the Delhi High Court has territorial jurisdiction to entertain a writ petition concerning the seizure of goods at ICD, Dadri, Uttar Pradesh, and proceedings before the Commissioner of Customs, Noida. Petitioner's Arguments: - The all-India headquarters of the Customs Commissionerate is in Delhi. - ICD, Dadri, is a regional unit of the DRI, whose headquarters is in Delhi. - A writ petition is maintainable before a court where even a minuscule part of the cause of action has arisen, relying on Sterling Agro Industries Ltd. v. Union of India. - The Supreme Court in Bakshish Ahmad v. Union of India & Ors. supports jurisdiction in such cases. - The detention is contrary to CBIC policy, and the Chartered Engineer's certificate was wrongly relied upon for classification. - Similar goods were cleared by other ICDs. Respondents' Arguments: - The Delhi High Court lacks territorial jurisdiction, relying on M/s Meever India Private Limited v. Union of India & ors. - The entire cause of action has arisen at ICD, Dadri, which falls under the jurisdiction of the Commissioner of Customs, Noida.