2013 (9) TMI 1116 - HC - Customs

Summary

Issues Involved:
1. Applicability of Plant Quarantine (Regulation of Import into India) Order, 2003 to the import of construction sand.
2. Legality of the restraint order and subsequent requirement for plant quarantine clearance.
3. Compliance with Foreign Trade Policy 2009-14 and Customs Act provisions.

Summary:

Issue 1: Applicability of PQ Order, 2003
The appellant challenged the applicability of the Plant Quarantine (Regulation of Import into India) Order, 2003 (PQ Order) to the import of construction sand. The court examined the definitions in the PQ Order, particularly 'soil' and 'plant', and concluded that construction sand does not fall within these definitions unless it is used as a medium to support plant life. The court noted that the consignment of construction sand imported by the appellant did not come under any of the conditions enumerated under clause 4 of Chapter II of the PQ Order.

Issue 2: Legality of Restraint Order and Plant Quarantine Clearance
The appellant argued that the restraint order and the requirement for a plant quarantine certificate were arbitrary and unauthorized. The court found that the Customs authorities had no valid reason to insist on a plant quarantine certificate for construction sand, as it is not intended to support plant life. The court also noted that the appellant had applied for a plant quarantine certificate to avoid additional expenses, but it was rejected on the grounds that the goods were already imported.

Issue 3: Compliance with Foreign Trade Policy 2009-14 and Customs Act
The court examined the Foreign Trade Policy 2009-14 and the Customs Act provisions. It found that construction sand under EXIM Code 2505 is declared as a free item in the Foreign Trade Policy, and no other conditions are required for its import. The court highlighted that there was no violation of the Customs Act or any other related statute, and the consignment was not improperly imported. The court emphasized that the appellant complied with all necessary duties and import formalities, and there was no allegation of misdeclaration or illegal import.

Conclusion:
The court set aside the judgment of the learned Single Judge that imposed charges under Schedule IX of the PQ Order. It directed the release of the consignment to the appellant without insisting on plant quarantine clearance or payment of any charges under the PQ Order, subject to the payment of duties and compliance with other import formalities. The court also acknowledged documents indicating that river sand for construction purposes is not listed in the PQ Order, supporting the appellant's case.