Detention Under Customs Act – Authority Must Specify Nature Of Infraction/ Violation, For Tentative Denial Of Preferential Duty Treatment: Delhi HC

The Delhi High Court ruled that under the Customs Act, the authority must clearly specify the nature of the infraction when detaining goods and denying preferential duty treatment. The court emphasized that mere suspicion without specific violations cannot be grounds for such action. This ruling strengthens the requirement for procedural transparency in customs matters, particularly when denying preferential duty benefits under trade agreements. It safeguards importers' rights, ensuring they are not penalized without concrete reasons.