While statutory appellate authorities lack jurisdiction to condone delays beyond prescribed statutory limits, the High Court, in exercise of its extraordinary jurisdiction under Article 226, may condone such delays to prevent a failure of justice and ensure that substantive legal rights are not defeated by procedural technicalities.

O R D E R: (Per the Hon’ble Sri Justice Suddala Chalapathi Rao)

1. The instant Writ Petition has been filed challenging the Order in Original No.185/2022/ADJN-CUS-ADC, dt.14.03.2023 on the file of the Addl. Commissioner Customs, GST LB Stadium i.e., the 1st respondent herein as confirmed by the common Order-in-Appeal No.HYD-CUS-000-APP1-227-228-23-24, dt.27.03.2024, on the file of the 2nd respondent (Appeals-1), and the consequential Final Order No.A/30015-30024/2025, dt.20.01.2025 passed by the 3rd respondent - Customs Excise and Excise Service Tax Appellate Tribunal, Southern Region Bench in Customs Appeals No.30748-30757 of 2024, by calling for the records and consequently set aside the original order No.185/2022-ADJN-CUS-ADC, dt.14.03.2023 passed by the 1st respondent as arbitrary contrary to the provisions of customs Act 1962 and consequent set aside the same.

2. The brief facts of the case are that the petitioner No.1 is a company duly incorporated under the provisions of the Companies Act, having its registered office at Indira Gandhi International Airport, Terminal-1D, New Delhi – 110037, India, and an additional operational office at 319, Udyog Vihar, Phase-IV, Gurgaon – 122016, Haryana. The petitioner No.1 is a well-established entity in the aviation and airline industry, carrying on diversified operations including air transportation, warehousing of goods, logistics, and allied trade services, and it has been issued with an Importer Exporter Code (IEC) bearing No.0593003667.

3. The petitioner No.1 entered into a sub-sub-lease deed dt.28.07.2021 (hereinafter referred to as the “Lease Deed”) with M/s GMR Hyderabad Aviation SEZ Limited (hereinafter referred to as “GHASL”) for the establishment of a Free Trade Warehousing Zone (FTWZ) within the Special Economic Zone (SEZ) premises. It is engaged in the business of trading and warehousing as contemplated under the terms of the Lease Deed and the leased premises were handed over to the 1st petitioner in August, 2021 and its commercial operations commenced in September, 2021. Further, as per Clause 3 of the said Lease Deed, the petitioner No.1 was permitted to allow third parties to use the premises on a license basis and Clause 3.2(a) specifically stipulates that the petitioner shall not create any lien or charge over the leased premises in favour of third parties, however, it may permit third parties to use the premises on a license basis, subject to the condition that such sub-users shall be solely responsible for compliance with all obligations under the Lease Deed, and not limited to payment obligations.

4. It is stated that prior to execution of the Lease Deed, the petitioner No.1 had obtained approval from the Government of India vide reference No.9-481/SCZ/HYD/2019/103-SE, dt.05.02.2020, for establishing a trading unit admeasuring 33,000 sq. meters on Acre 1.60 guntas of land within the FTWZ situated at GHASL, Mamidipalli Village, Shamshabad Mandal, Ranga Reddy District, Telangana, and the said approval was extended from time to time. The SEZ framework is intended to promote exports, attract foreign direct investment (FDI), and generate employment opportunities by providing a competitive, efficient, and hassle-free business environment for entities engaged in international trade.

5. It is further submitted that M/s NADFA Trading FZE dispatched 21 consign