Indian customs cannot charge duty after DGFT issues discharge certificate – Customs Tribunal Judgement

The Indian customs tribunal CESAT (Customs, Excise and Service Tax Appellate Tribunal) delivered its judgment on 20 November 2025 for a case - Interglobe Enterprises Ltd. vs Commissioner of Customs, New Delhi (Customs Appeal No. 124 of 2010). This judgement was published on 14 December 2025. It stated - Customs authorities cannot demand customs duty once an Export Obligation Discharge Certificate (EODC) has been issued by DGFT.

The judgment brings clarity to long-standing disputes and confusion between importers and Indian Customs over post-clearance reassessment of export obligations, particularly in cases involving high-value imports such as cars imported under export-linked incentive schemes.

Background of the Case

The case involved the import of cars under an export promotion scheme, where duty exemption was granted subject to fulfilment of prescribed export obligations.

The importer fulfilled the export obligation as per DGFT norms and later DGFT issued an EODC. Despite this, Customs authorities raised a duty demand, questioning the fulfilment of conditions and reassessing compliance.

This led to dispute which was taken to customs tribunal.

Later CESTAT ruled in favour of the importer, clearly stating that once DGFT issues an EODC, it conclusively confirms that the exporter has complied with all condition and after EODC issuance the Customs authorities do not have any jurisdiction to reassess /question DGFT certification and impose duty again to the importer.

This judgement is very important for shaping Exim business for India it gives a clarity for a long standing confusion, increasing the ease of doing business along with empowering the importers.