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Section 45(3) Customs Act Inapplicable to Goods Lost in Super Cyclone: Orissa HC
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Orissa High Courttaxcorporate

Section 45(3) Customs Act Inapplicable to Goods Lost in Super Cyclone: Orissa HC

July 8, 2026

The Orissa High Court has ruled that Section 45(3) of the Customs Act does not apply to goods lost due to natural disasters, setting a clear legal precedent in such scenarios.

Orissa HC Ruling on Section 45(3) of the Customs Act

The Orissa High Court recently set aside a customs duty demand against a Port Trust, clarifying that Section 45(3) of the Customs Act pertains specifically to pilfered goods and does not extend to cargo lost due to natural disasters, such as super cyclones.

This ruling emerged from a case where the petitioner contended that the loss of goods was attributable to uncontrollable natural events, thus, invoking the provisions of Section 45(3) was inappropriate. The Court agreed, emphasizing the need for statutory interpretation that safeguards entities against losses incurred without fault.

For customs practitioners, this judgment underscores the relevance of contextual analysis when addressing customs duty claims related to natural calamities. It sets a vital precedent that can protect port trusts and importers against undue financial burdens in similar situations.

Citations

  • Port Trust Case (2026) Orissa HC
Source:Orissa High Court
Practice Areas:taxcorporate

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