Category: Delhi High Court

  • Delhi High Court Rejects Novo Nordisk’s Interim Injunction in Semaglutide Patent Dispute Against Dr. Reddy’s Laboratories

    Delhi High Court Rejects Novo Nordisk’s Interim Injunction in Semaglutide Patent Dispute Against Dr. Reddy’s Laboratories

    Date: 04.12.2025

    On December 2, 2025, the Delhi High Court delivered a significant judgment in the case of Novo Nordisk AS vs. Dr. Reddy’s Laboratories Limited & Anr. ​ (CS(COMM) 565/2025), addressing a patent infringement dispute over the pharmaceutical compound Semaglutide. The case revolved around Novo Nordisk’s claim that Dr. Reddy’s Laboratories infringed its patent (Patent No. ​ IN’697) for the drug Semaglutide, marketed under the brand names Ozempic, Wegovy, and Rybelsus. ​

    Background of the Case

    Novo Nordisk, a global healthcare company specializing in diabetes treatment, filed the suit alleging that Dr. Reddy’s Laboratories and OneSource Specialty Pharma Limited were manufacturing and exporting Semaglutide-based drugs without authorization. ​ Novo Nordisk sought an interim injunction to restrain the defendants from manufacturing and exporting the drug, claiming infringement of its patent.

    The defendants argued that the Semaglutide compound was already disclosed in a prior patent, IN’964 (Genus Patent), filed by Novo Nordisk in 2004. They contended that the Semaglutide compound was not novel and lacked an inventive step, making the Suit Patent/IN’697 vulnerable to revocation under Section 64 of the Indian Patents Act, 1970. ​

    Key Issues Addressed

    The court focused on the following key issues:

    1. Anticipation by Prior Claiming (Section 64(1)(a)): The defendants argued that the Semaglutide compound was already claimed in the Genus Patent/IN’964. ​ The court found that the Genus Patent/IN’964 contained specific claims and disclosures that enabled a “person skilled in the art” to arrive at the Semaglutide compound, making the Suit Patent/IN’697 vulnerable to revocation under Section 64(1)(a). ​
    2. Anticipation by Prior Publication (Section 64(1)(e)): The court held that the Genus Patent/IN’964, published before the priority date of the Suit Patent/IN’697, disclosed the Semaglutide compound, making the latter patent vulnerable under Section 64(1)(e). ​
    3. Obviousness (Section 64(1)(f)): The court determined that the Semaglutide compound was an obvious modification of Example 61 in the Genus Patent/IN’964, given the teachings in the prior arts, including Deacon [1998] and Knudsen [2004]. ​ The court applied the “person in the know” test, considering the common inventors between the Genus Patent/IN’964 and the Suit Patent/IN’697, and concluded that the modifications were within the skillset of the inventors. ​
    4. Evergreening: The court noted that Novo Nordisk had invented the Semaglutide compound in 2004, contemporaneous with the filing of the Genus Patent/IN’964. ​ The court found that the filing of the Suit Patent/IN’697 was an attempt to extend the monopoly on the Semaglutide compound, resulting in double patenting and evergreening. ​

    Court’s Decision

    The court denied Novo Nordisk’s request for an interim injunction, allowing Dr. Reddy’s Laboratories to continue manufacturing the drug in India and exporting it to countries where Novo Nordisk does not hold a patent. ​ However, the court directed the defendants to maintain detailed records of their manufacturing and export activities and prohibited them from selling the drug in India until the expiry of the Suit Patent/IN’697 on March 20, 2026. ​

    Key Takeaways

    1. No Presumption of Patent Validity: The court reiterated that under Indian patent law, there is no presumption of validity for granted patents, and defendants can challenge the validity of a patent even at the interim stage. ​
    2. Evergreening and Double Patenting: The court emphasized that patent law does not permit inventors to extend their monopoly through successive patents for the same invention, as this would be against public interest. ​
    3. Importance of Clearing the Way: The court criticized the defendants for failing to challenge the Suit Patent/IN’697 before commencing manufacturing, highlighting the importance of clearing the way in patent disputes. ​

    Implications

    This judgment is a landmark decision in the realm of patent law, particularly in the pharmaceutical sector. It underscores the importance of assessing patent validity under Indian law and highlights the judiciary’s stance against evergreening practices that could harm public interest. ​ The case also serves as a reminder for companies to clear the way before engaging in activities that may infringe on existing patents.

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  • High Court of Delhi Quashes Proceedings Under Rule 96(10) of CGST Rules

    High Court of Delhi Quashes Proceedings Under Rule 96(10) of CGST Rules

    Date: 03.12.2025

    In a landmark judgment delivered on November 20, 2025, the High Court of Delhi addressed the constitutional validity and implications of Rule 96(10) of the Central Goods and Services Tax (CGST) Rules, 2017. ​ The judgment, authored by Justice, has significant ramifications for exporters seeking refunds under the Integrated Goods and Services Tax (IGST) framework. The Court quashed proceedings initiated under Rule 96(10) in three separate writ petitions, marking a pivotal moment in GST jurisprudence.

    Background

    Rule 96(10) of the CGST Rules imposed restrictions on exporters claiming IGST refunds, creating complications for businesses availing exemptions under specific notifications. ​ The rule was challenged by various petitioners, including M/s Vinayak International Housewares Pvt Ltd, M/s Ashish Foils Pvt Ltd, and M/s Mayedass International, who argued that the rule was unconstitutional and contrary to Section 16 of the IGST Act, 2017.

    The GST Council, in its 54th meeting, recommended the omission of Rule 96(10), citing its unnecessary complexity and lack of intended benefits. ​ Subsequently, Notification No. ​ 20/2024 was issued on October 8, 2024, officially omitting the rule. ​ However, the omission was deemed prospective, leading to disputes over its applicability to pending proceedings. ​

    Key Observations by the Court ​

    1. Constitutional Validity of Rule 96(10): ​ The Court referred to the Kerala High Court’s decision in Sance Laboratories Pvt. ​ Ltd. vs. Union of India, which declared Rule 96(10) unconstitutional for imposing restrictions not contemplated under Section 16 of the IGST Act. ​ The Delhi High Court concurred, emphasizing that the rule created arbitrary constraints on IGST refunds.
    2. Impact of Omission: ​ The Court relied on precedents, including the Supreme Court’s judgment in Kolhapur Canesugar Works Ltd., to conclude that the omission of Rule 96(10) applies to all pending proceedings. ​ It held that unless transactions are “past and closed,” the benefit of the rule’s omission must extend to ongoing cases. ​
    3. Quashing of Proceedings: ​
      • In W.P.(C) 3154/2023, the Court quashed summons issued to M/s Vinayak International Housewares Pvt Ltd, ruling that no proceedings could continue under the omitted rule. ​
      • In W.P.(C) 10687/2023, the Court quashed show cause notices (SCNs) and subsequent orders against M/s Ashish Foils Pvt Ltd. ​
      • In W.P.(C) 3165/2023, the Court quashed SCNs and proceedings against M/s Mayedass International. ​

    Implications for Exporters ​

    This judgment is a significant relief for exporters who faced hurdles in claiming IGST refunds due to Rule 96(10). ​ The Court’s decision ensures that the omission of the rule applies retrospectively to all pending proceedings, including SCNs, orders, and appeals. ​ Exporters can now claim refunds without the constraints imposed by the rule, simplifying the refund process and aligning it with the intent of the GST framework. ​

    Conclusion

    The Delhi High Court’s judgment underscores the importance of judicial scrutiny in ensuring that tax regulations do not impose arbitrary restrictions on businesses. By quashing proceedings under Rule 96(10), the Court has upheld the principles of fairness and simplicity in the GST regime. This decision is a welcome development for exporters and sets a precedent for similar cases across the country.

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  • Delhi High Court Examines Classification and Jurisdiction Issues in Export Tax Dispute

    Delhi High Court Examines Classification and Jurisdiction Issues in Export Tax Dispute

    Date: 01.12.2025

    In a significant legal development, the Delhi High Court recently heard the case of M/s Talbros Sealing Material Pvt. ​ Ltd. vs. Additional Commissioner of Customs Export & Anr. ​ on November 21, 2025. ​ The case revolves around two critical issues: the classification of exported goods and the authority of the Customs Department to issue a Show Cause Notice (SCN) under the Integrated Goods and Services Tax Act, 2017 (IGST Act). ​

    Background of the Case

    M/s Talbros Sealing Material Pvt. ​ Ltd., a company engaged in the export of sealing materials such as rubberized cork gaskets and rubber gaskets, filed a writ petition under Article 226 of the Constitution of India. ​ The petition challenges an Order-in-Original dated June 25, 2025, issued by the Office of the Commissioner of Customs (Export). ​ The impugned order raised demands and directed recoveries against the Petitioner, including rejection of IGST refunds, drawback amounts, and other export benefits. ​

    The dispute arose from the classification of the exported goods. ​ The Customs Department alleged that the Petitioner had incorrectly classified the products under HSN 40169340 instead of HSN 45041010, leading to inadmissible export benefits. ​ The department imposed penalties and ordered the recovery of excess incentives along with applicable interest.

    Key Issues Raised ​

    1. Classification of Goods: The Petitioner challenged the classification of its products, arguing that the Customs Department’s decision was incorrect. ​ The court allowed the Petitioner to file an appeal within 30 days regarding this issue, ensuring that the appeal would not be dismissed on the grounds of limitation. ​
    2. Authority to Issue SCN: The Petitioner contended that the Customs Department lacked the authority to issue the SCN under the IGST Act. ​ It argued that only a proper officer notified under Section 73 of the Central Goods and Services Tax Act, 2017 (CGST Act) could raise demands or recover taxes. ​ On the other hand, the Respondent argued that Customs Officers are proper officers under Section 2(2) of the Customs Act, 1962, and can raise tax demands related to exports. ​

    Court’s Observations and Directions

    The court acknowledged the complexity of the interplay between the Customs Act, IGST Act, and CGST Act. ​ It directed the Customs Department and CGST Department to file a joint affidavit clarifying who qualifies as the ‘proper officer’ in such cases. ​ The court also emphasized that the classification issue should be addressed through appellate remedies. ​

    Next Steps

    The court has set the following timeline for the case:

    • Counter Affidavit: To be filed within four weeks. ​
    • Rejoinder: To be filed within four weeks thereafter. ​
    • Next Hearing: Scheduled for February 24, 2026. ​

    Implications of the Case

    This case highlights the challenges exporters face in navigating complex tax and customs regulations. ​ The outcome of this case could have significant implications for businesses dealing with similar classification and jurisdictional issues. ​ It also underscores the importance of clarity in the roles and responsibilities of different departments under the GST regime.​

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  • Delhi High Court Orders Provisional Release of Seized Goods in Customs Dispute

    Delhi High Court Orders Provisional Release of Seized Goods in Customs Dispute

    Date: 23.09.2025

    ​​

    In a significant judgment delivered on August 13, 2025, the Delhi High Court addressed the contentious issue of seizure and provisional release of imported goods under the Customs Act, 1962. ​ The case involved M/s Nageswara Trade, which had filed two writ petitions challenging the seizure of its imported multi-functional devices and photocopier machines. ​

    The dispute arose when the Customs Department seized goods imported by M/s Nageswara Trade under Bill of Entry No. ​ 5518018 dated September 10, 2024. ​ The seizure memo, issued on January 2, 2025, cited non-compliance with the Bureau of Indian Standards (BIS) registration and restrictions under the Foreign Trade Policy (FTP). The petitioner argued that the seizure was arbitrary, as the memo did not specify the violation, and sought provisional release of the goods.

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  • Case Compilation on Indian Customs Law- Pro Industry cases

    Case Compilation on Indian Customs Law- Pro Industry cases

    Date: 20.09.2025

    A Comprehensive compilation of Pro-Industry decided cases based upon CESTAT Tribunal, Supreme Court, and various High Court Decisions

    Prepared for Legal Professionals, Importers, Exporters, Customs Brokers, Freight Forwarders, and Industry Stakeholders.

    The document is designed with users in mind:

    Legal Professionals and Advocates: to strengthen arguments, identify precedents, and analyze emerging jurisprudential trends.

    Importers and Exporters: to understand compliance obligations, permissible reliefs, and potential liabilities in customs operations.

    Customs House Agents and Freight Forwarders: to better appreciate their responsibilities, liabilities, and avenues for defense in proceedings.


    Industry Stakeholders and Policy Analysts: to observe how judicial interpretation influences trade policy, customs procedures, and dispute resolution frameworks.


    The compilation thus stands as a practical handbook for trade compliance, litigation strategy, and informed decision-making.

    Link has been provided for Readers/Users for the source Judicial Orders, which directly opens the source PDF document.

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  • Delegated Legislation in Indirect Taxes: Judicial Scrutiny under the Customs Act, 1962 & Indirect Taxes

    Delegated Legislation in Indirect Taxes: Judicial Scrutiny under the Customs Act, 1962 & Indirect Taxes

    Date: 28.08.2025

    ​ ​ ​ ​

    • Article 245–246: Only Parliament/State legislatures can levy taxes; delegation cannot include β€œessential legislative functions.”
    • Article 265: β€œNo tax shall be levied or collected except by authority of law.” Thus, a rule, notification, circular, or regulation cannot create/expand a tax liability without clear legislative sanction.
    • Doctrine of Excessive Delegation: Laid down in In re Delhi Laws Act (1951 SCR 747), later reaffirmed in Avinder Singh v. State of Punjab (1979 1 SCC 137). Parliament may delegate the manner or details of implementation, but not the policy or essential features.
    • Judicial role: Courts test whether delegated instruments remain within the β€œparent Act” or trespass into taxation without statute.

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  • Delhi High Court Sets Aside the CESTAT Order of delay in filling the Customs appeal​ ​

    Delhi High Court Sets Aside the CESTAT Order of delay in filling the Customs appeal​ ​

    Date: 27.08.2025

    The High Court of Delhi, in a significant judgment delivered on January 23, 2024, addressed a long-pending customs appeal involving the Commissioner of Customs ACC Import New Delhi and M/s Kajaria Ceramics Ltd. ​ The case revolved around the condonation of an extraordinary delay in filing the appeal and the subsequent remittance of the matter to the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) for adjudication on merits. ​

    The appeal was filed under Section 130(2A) of the Customs Act, 1962, seeking condonation of a delay of 2267 days in filing the appeal. ​ The delay was attributed to the pendency of similar issues in other cases and the legal uncertainty surrounding the jurisdiction of the adjudicating authority. The respondent, M/s Kajaria Ceramics Ltd, represented by Advocate, did not object to the condonation of the delay, citing the precedent set in a batch of appeals decided earlier. ​ The appellant, represented by Senior Standing Counsel, relied on the judgment passed in Pr. ​ Commissioner of Customs vs. Kunal Lalani (CUSAA 20/2021), where similar matters were remitted to the Tribunal for fresh adjudication.

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  • Delhi High Court Orders Release of Confiscated Gold Chain

    Delhi High Court Orders Release of Confiscated Gold Chain

    Date: 18.08.2025

    In a significant ruling on August 7, 2025, the High Court of Delhi addressed the contentious issue of gold jewelry confiscation by customs authorities, setting a precedent for the treatment of personal effects under Indian law. ​ The case involved Appellant, a senior citizen and foreign national from Turkmenistan, who had traveled to India for medical treatment. Upon her arrival at Indira Gandhi International Airport on July 16, 2024, customs officials detained her gold chain (weighing 132 grams) and gold bracelet (weighing 66 grams), citing violations of customs regulations. ​

    Appellant filed a petition under Article 226 of the Constitution of India, seeking the release of her confiscated gold items. ​ While the Customs Department allowed her to redeem the gold bracelet upon payment of a fine and penalty, the gold chain was subjected to absolute confiscation. ​ This distinction between the two items raised questions about the legality and rationale behind the customs authorities’ actions.

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  • Delhi High Court Upholds SAD Refund & Latest Customs Notification

    Delhi High Court Upholds SAD Refund & Latest Customs Notification

    Date: 30.06.2025

    The Delhi High Court in Commissioner of Customs (ICD Import) vs. Suzuki Motorcycle India Pvt. Ltd., has upheld the right of the importer to claim refund of Special Additional Duty (SAD) under Section 27 of the Customs Act, 1962, despite the one-year limitation condition prescribed in Notification No. 102/2007-Customs, as amended.

    The Court dismissed the Revenue’s appeal and upheld the CESTAT’s decision, marking a key precedent for SAD refund claims and interpretation of refund limitations under customs notifications.

    • Suzuki Motorcycle India Pvt. Ltd. had imported goods on payment of Special Additional Duty (SAD) and later sold them in the domestic market, paying VAT/CST, as required under Notification No. 102/2007-Cus.
    • The company sought refund of SAD under the said notification but filed claims beyond the one-year period stipulated by the 2008 amendment to the notification (Notification No. 93/2008-Cus).
    • The Department rejected the refund, citing delay, leading to the matter being contested before CESTAT, which allowed the refund.
    • The Department filed an appeal before the Delhi High Court, relying on the Bombay High Court’s ruling in CMS Info Systems Ltd. v. UOI [2017 (349) ELT 236 (Bom)], which had upheld the one-year limitation.

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  • Delhi High Court- Customs Detention in NDPS Case Declared Illegal

    Delhi High Court- Customs Detention in NDPS Case Declared Illegal

    Date: 26.06.2025

    The Delhi High Court has granted bail to Appellant, an Ethiopian national, in a case involving alleged drug trafficking under the Narcotic Drugs and Psychotropic Substances Act, 1985 (NDPS Act). The Court held that the petitioner’s prolonged detention by Customs officials without producing him before a magistrate constituted a violation of Articles 21 and 22 of the Constitution of India.

    Appellant was intercepted by Customs officials at IGI Airport, Delhi on 21 May 2023 after he was suspected of concealing drugs internally. He voluntarily admitted to ingesting 75 capsules containing methaqualone and cocaine, which were medically removed at Safdarjung Hospital. Despite this, he was only formally arrested by the Customs Department on 26 May 2023.

    The NDPS recovery was significant:

    • Cocaine Hydrochloride: 424 grams
    • Methaqualone: 536 grams
    • Total: 960 grams, qualifying as a commercial quantity.

    Appellant filed a bail application under Section 439 of the CrPC, read with Section 37 of the NDPS Act.

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