Delhi HC upheld appropriation of voluntary customs payments for earlier imports where liability was admitted.
The Delhi High Court upheld the appropriation of voluntarily deposited customs duty towards liabilities arising from past imports, even beyond the limitation period under Section 28 of the Customs Act, 1962. The key factor was the importer’s admission of liability and intent for adjustment.
The court held that statutory limitation under Section 28 does not bar recovery when funds are deposited with specific instructions for set-off, and the liability is acknowledged. The principle of unjust enrichment was central to the reasoning.
This ruling enables effective settlement mechanisms. Legal practitioners may advise clients on strategic deposits to resolve pendency, provided clear communication and mutual recognition of dues are established.
Citations
- Section 28, Customs Act, 1962
