Delhi HC Quashes Customs Order After 15-Year Delay: No Excuse in ‘Call Book’ Entry
Focus keyphrase: 15-year delay customs case
In a significant ruling for Indian importers and tax professionals, the Delhi High Court quashed a final adjudication order in a customs case delayed by 15 years, stating that mere placement in the ‘call book’ is not a valid reason to keep proceedings pending indefinitely.
This judgment reaffirms the principle of timely adjudication in indirect tax cases, with broader implications for cases pending under CBIC’s call book mechanism.
What Is a ‘Call Book’ in Customs?
The call book system allows tax authorities to keep certain cases on hold when:
- A board direction is awaited
- An injunction or stay is issued by the court
- An audit objection or vigilance report is pending
- Similar legal issues are sub-judice
While this mechanism helps prioritize cases, it cannot override principles of natural justice or the right to speedy adjudication.
Case Summary:
Case: M/s Artex Textiles Pvt. Ltd. vs Union of India
Court: Delhi High Court
Order Date: June 2025
Issue: 15-year delay in adjudicating a 2009 Show Cause Notice (SCN)
CBIC Argument: Delay justified due to placement in call book
HC Verdict: Final order quashed; delay violates due process
Key Observations by Delhi HC
- Unreasonable delay of 15 years in adjudication renders the proceedings void.
- Call book status is not a shield for indefinite delay, especially when no legal stay exists.
- The taxpayer was left in limbo without closure, impacting business certainty.
- No fresh SCN or investigation was conducted during the call book period.
Legal Basis Referenced
- CBEC Instruction F. No. 101/2/92-CX.3 dated 14.05.1992: Provides criteria for call book entry but mandates regular review.
- Article 14 & 21 of the Constitution: Ensure fair process and timely adjudication.
- Supreme Court in CCE vs Krishna Carbon Paper Co. (1989): Warned against unreasonable delay in SCN adjudication.
Expert View:
“This judgment reinforces the legal maxim justice delayed is justice denied. Taxpayers should not suffer due to systemic inefficiencies.”
— Rajiv Bansal, Indirect Tax Advisor
Why This Matters for Indian Taxpayers
- Old SCNs stuck in call book are now subject to judicial scrutiny
- Importers/exporters can challenge delayed adjudications citing this ruling
- Ensures accountability and faster closure of customs disputes
What Should Businesses Do Now?
- Track pending SCNs: Check if they’re in call book without legal justification
- File representations to concerned authorities for closure
- Seek legal recourse if delay is beyond a reasonable period (3–5 years)
- Refer to this Delhi HC ruling in your reply or writ petition if needed
Summary
Delhi High Court quashes final order in customs case citing 15-year delay in adjudication. Placement in call book not valid reason. Boosts accountability in SCN timelines.
FAQs
Q1. What is the ‘call book’ system in customs adjudication?
It’s a tracking mechanism used by CBIC to defer SCN adjudication under specific circumstances like court stays or board directions.
Q2. Can a taxpayer challenge long delays due to call book status?
Yes. As per this Delhi HC ruling, unjustified delays can be challenged for violating due process.
Q3. Does this apply to GST SCNs too?
While this case pertains to customs, the logic can apply to GST cases with similar call book entries.