2013 (4) TMI 810 - HC - Customs

Summary

Issues Involved:
The judgment involves issues related to the detention and clearance of imported Steam Coal, classification of coal as Steam Coal or Bituminous Coal, provisional assessment under Section 18 of the Customs Act, detention under Section 110 of the Customs Act, and the power of authorities to detain consignments after provisional assessment.

Detention and Clearance of Imported Coal:
The petitioners were aggrieved by the Customs Officials at Krishnapatnam Port for not permitting clearance of Steam Coal imported under different Bills of Entries. Some consignments were seized by the Superintendent of Customs, leading to a request for withdrawal or cancellation of detention orders.

Classification of Coal:
The dispute arose from the classification of the imported coal as either Steam Coal or Bituminous Coal. Steam coal falls under an exemption with a 1% Customs duty, while Bituminous coal attracts a higher duty rate. Authorities were cautious due to incidents of misclassification for duty evasion.

Provisional Assessment and Detention:
Petitioners argued that after provisional assessment under Section 18 of the Customs Act and payment of duties, authorities lacked the power to detain consignments. They cited legal precedents to support their position, emphasizing the overriding effect of Section 18.

Detention under Section 110:
Respondents justified detention under Section 110(1) of the Customs Act, citing reasonable belief of confiscation under Section 111(m). They argued that the bond under Section 18 was limited to document production and did not affect Sections 110 & 111.

Judgment:
The Court acknowledged the need for a detailed consideration of the authority to detain consignments post-provisional assessment. While interim relief was not granted due to ongoing detention and a change in duty rates, the petitioners were permitted to lift the detained stock upon payment of the differential duty, considering the circumstances of the case.

Disposition:
The Court directed the release of the detained consignments for lifting by the petitioners upon payment of the differential duty. The matters were disposed of accordingly.