Delhi High Court Allows TRQ Benefit and Refund on Crude Soya-bean Oil Imports

The petitioner, who is in the business of import and processing of edible oils, including crude degummed soya-bean oil, received a Tariff Rate Quota (TRQ) licence on 05.08.2022 under Notification No.30/2022-Customs dated 24.05.2022, providing exemption from Customs Duty in respect of TRQ imports. Public Notice No.50/2015-20 dated 11.01.2023 subsequently suspended the TRQ for crude soya-bean oil effective from 01.04.2023, but exempted in case the bill of lading was up to 31.03.2023. The bill of lading of the consignment of the Petitioner was dated 08.02.2023, while the goods arrived in April 2023. The exemption was denied by the Customs authorities, and the Customs Duty of Rs. 24,03,057/-, which was paid under protest.

Notification No. 37/2023-Customs dated 10.05.2023 again granted exemption on crude soya-bean oil till 30.06.2023, but the notification came into effect only from 11.05.2023, creating a gap between 01.04.2023 and 10.05.2023 during which the petitioner’s import was not covered. Aggrieved, the petitioner filed the present writ petition seeking quashing or amendment of the said notification, extension of TRQ benefit for the relevant period, and refund of the duty paid under protest with interest.

Issue Raised: Whether a consignment of crude soya-bean oil pursuant to a Bill of Lading of 08.02.2023 was eligible for TRQ exemption and Customs Duty refund of Rs. 24,03,057/- paid under protest, notwithstanding the lacuna period caused by subsequent notifications within the period from 01.04.2023 to 10.05.2023.

HC’s Ruling: The Court noted that a Coordinate Bench of the same Court had already decided an identical issue in Ajanta Soya Ltd. v. Union of India, where it was held that TRQ exemption extended to all imports with bills of lading dated on or before 31.03.2023, provided the goods landed before 30.06.2023. The Supreme Court had subsequently dismissed the Union’s Special Leave Petition against that judgment on 16.12.2024, both on the ground of delay and on merits. The proportion of Ajanta Soya Ltd., the Court held that the shipment of the petitioner dated 08.02.2023 fell squarely within the purview of the TRQ benefit. The respondents protested against the territorial jurisdiction of the Court, giving the plea that the petitioner’s import port and registered office were outside Delhi, no such plea had ever been taken in pleadings or counter-affidavit, and the petition already was pending for more than two years.

The High Court held that sending the petitioner to another forum would be unjust and unnecessary. The Court extended the same benefit as granted in Ajanta Soya Ltd. and directed the authorities to process the refund of Rs. 24,03,057/- paid under protest within three months in accordance with law. The Bench clarified that the order had been passed in the unique facts of the case and would not act as a precedent for other matters.

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