Last Updated: August 26, 2022, 11:37 AM IST
Customs authorities can approach the adjudicating authorities claiming the Customs dues as operational debt under IBC. (Shutterstock)
Customs authorities cannot start recovery proceedings, they can only assess the quantum of duties, says SC
The Supreme Court on Friday held that the Insolvency and Bankruptcy Code (IBC) will take precedence over the Customs Act. It added that customs authorities cannot start recovery proceedings, they can only assess the quantum of duties.
The Bench, comprising Chief Justice N V Ramana, Justice Hima Kohli and Justice C T Ravikumar, said after the assessment, Customs authorities can approach the adjudicating authorities claiming the Customs dues as operational debt under IBC. The insolvency resolution professional can take steps to secure the property, according to a Livelaw report.
CJI Ramana, while pronouncing the judgment, said Customs authorities have only limited jurisdiction to assess the quantum and they cannot take steps to recover the dues, once the moratorium under IBC is declared, the report added.
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