Incorrect Classification Is Not By Itself Collusion/ Wilful Misstatement U/S 28AAA Customs Act; Prior Determination By DGFT Must: Delhi HC

The Delhi High Court has ruled that incorrect classification of goods alone does not constitute collusion or willful misstatement under Section 28AAA of the Customs Act. The court emphasized that prior determination by DGFT is essential. This ruling clarifies the requirements for establishing serious violations in customs cases and protects importers from excessive penalties based solely on classification errors. The decision highlights the importance of distinguishing between genuine mistakes and intentional violations in customs matters.