Gauhati High Court upholds Dimapur Customs' seizure of areca nuts worth INR 2.22 crore in a suspected smuggling case.
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DIMAPUR — The Kohima Bench of Gauhati High Court has dismissed a writ petition filed by a private trading firm seeking the immediate release of 33,600 kilograms of areca nuts (locally known as supari) valued at approximately INR 2.22 crore, which were seized by Dimapur Customs officials last year.
In a ruling passed on June 18, the court affirmed that the Customs' seizure powers under Section 110 of the Customs Act operate independently of Goods and Services Tax (GST) compliance requirements and were validly exercised in the case.
According to court records, the case originated from an incident on November 6, 2025, when officials from the Preventive Customs Department’s Dimapur Division acted on specific intelligence regarding cross-border smuggling operations.
Operators intercepted a truck—bearing registration number AS-31-C-1172—near the Lumding-Hojai stretch, packed with 480 bags of areca nuts.
The interception quickly turned dramatic when the person in charge of the transportation failed to produce any valid invoices, e-way bills, or delivery challans.
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Furthermore, during the confrontation, the truck driver reportedly assaulted a Customs officer and fled the scene into the night.
The petitioner, Sarvadeva Vanijya Pvt. Ltd., later approached the High Court claiming that the high-value stock was simple domestic inventory being transferred from their Hailakandi market location to a company godown in Guwahati.
Customs vs. GST
One of the arguments raised by the trading company was on the issue of jurisdiction. The firm contended that because Customs officials cited a lack of a GST e-way bill during provisional release applications, they were overstepping their bounds.
The petitioner argued that the powers to penalise or seize goods for GST law violations belong exclusively to designated GST commissioners, rendering the Customs seizure illegal and unauthorised.
However, Justice Pranjal Das rejected this argument and upheld Customs' authority to act independently under the Customs Act.
He ruled that the quantity and value of the consignment, the absence of supporting documents at the time of interception, the conduct of the driver and the Northeast region’s vulnerability to cross-border areca nut smuggling collectively constituted sufficient grounds for Customs officials to form a "reason to believe" that the goods were liable to confiscation.
While the High Court ruled that the administrative seizure of the contraband was a bona fide exercise of power, the truck itself should not be permanently held back from its rightful operator.
Justice Das ordered the Customs division to release the seized truck to its verified pro forma owner, Moin Uddin, subject to a strict verification process and the filing of an appropriate bond.