Delhi High Court Directs To Re-Assess Bills Of Entry, Allows Infra Cess Exemption On E-Golf Carts Owing To Technical Glitch

The Delhi High Court in a matter where importer could not avail Infrastructure Cess exemption due to technical glitch, has directed the Customs Department to re-assess and refund the excess Infrastructure Cess of ₹55,876.29 paid by the Petitioner on imported electrically operated golf carts. A Division Bench comprising Justice Prathiba M. Singh and Justice Shail Jain, observed that since Electronically Operated Golf Carts qualified for exemption from payment of Infrastructure Cess, the excess amount paid cannot be held back. Petitioner imported electronically operated golf carts. At the time of filing Bills of Entries on the EDI system, since there was a technical glitch on the EDI system, Infrastructure Cess exemption could not be claimed. Resultantly, instead of paying the customs duty of ₹2,95,426.71, the Petitioner was forced to pay a higher duty of ₹3,51,303. By way of the present writ petition it sought directions for re-assessment of Bills of Entry as well as refund of amounts of Customs Duties paid in excess of Infrastructure Cess on the ground that imported golf carts which were exempted from payment of 'Infra Cess' in terms of Notification 1/2016-Infrastructure Cess dated March 01, 2016 (the Infrastructure Cess Notification). Finance Bill, 2016 imposed an Infrastructure Cess, as a duty of excise, is being imposed on motor vehicles falling under Heading 8703. The Infrastructure Cess Notification prescribed NIL rate on Electrically operated vehicles. Petitioner contended that goods squarely fell under Sl. No. 4 of the Infrastructure Cess Notification covering “electrically operated vehicles” and the department's insistence on prior re-assessment before refund, could not be used to withhold money admittedly collected in excess of law. Petitioner relied upon the ratio of M/s ITC Ltd. v. C.C.E. Kolkata-IV where the Supreme Court held that Section 27 of the Customs Act does not empower setting aside a self-assessment for refund without recourse to Sections 128 or other review provisions. Contrarily, Customs Department submitted that the Bills of Entries would have to be re-assessed and refund could not be given without that. On non-availment of Infrastructure Cess exemption benefit due to portal error, the Delhi High Court opined that “In the counter affidavit, the Court notes that there is no response to the allegation that there was a technical glitch in the EDI system.” Therefore, the Delhi High Court directed for re-assessment of Bills of Entry so that the Refund could be processed. Case Detail: JK India (Fabs) vs. Union of IndiaCitation: 2025 LiveLaw (Del) 1723 Case No.: W.P.(C)-14644/2022 For Petitioner: Advocate Sourabh Kapoor For Respondent: SSC Anushree Narain and Advocate Yamit Jetley Click here to read the Order.

Delhi High Court Directs To Re-Assess Bills Of Entry, Allows Infra Cess Exemption On E-Golf Carts Owing To Technical Glitch

Parul Bose

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Delhi High Court Directs To Re-Assess Bills Of Entry, Allows Infra Cess Exemption On E-Golf Carts Owing To Technical Glitch

Parul Bose

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