2012 (2) TMI 359 - HC - Customs

Re-export of goods petition filed by foreign exporter to seek permission for re-shipment of goods exported by it to India - importer abandons the goods Held that - Since, Petitioner has the right to request such permission and importer does not have any objection for the re-export of the goods in question, the respondents are directed to consider the request of re-export of the goods in question unless there are other legal impediments, for granting such permission.

Summary

Issues:
1. Ownership rights of goods when importer refuses delivery.
2. Rights of unpaid seller under Sale of Goods Act, 1930.
3. Request for re-export of goods by the petitioner.
4. Show cause notice issued under Customs Act, 1962.
5. Financial constraints preventing payment for imported goods.
6. Court's directive on re-export permission and initiation of necessary actions.

Ownership rights of goods when importer refuses delivery:
The petitioner, an importer and exporter of commodities, shipped a consignment of Imitation Glass stones to M/s.Sky Way Corporation, Jaipur. However, the importer refused to clear the goods, leading the petitioner to request re-export. The petitioner claimed ownership rights citing legal provisions and court precedents.

Rights of unpaid seller under Sale of Goods Act, 1930:
The petitioner asserted rights as an unpaid seller under the Sale of Goods Act, 1930, emphasizing the lien on the goods due to non-payment. Referring to a Delhi High Court decision, the petitioner argued that title in abandoned goods vests with the unpaid seller.

Request for re-export of goods by the petitioner:
The petitioner sought permission for re-export of the goods, contending that the importer had abandoned them. The petitioner argued for the right to request re-shipment based on legal provisions and court judgments supporting the unpaid seller's rights.

Show cause notice issued under Customs Act, 1962:
A show cause notice was issued to the importer for alleged violations of the Customs Act, 1962, regarding misdeclaration and evasion of duty. The notice proposed confiscation of goods, indicating ongoing investigations and legal actions against the importer.

Financial constraints preventing payment for imported goods:
The third respondent cited severe financial constraints for non-payment and inability to clear the goods. This situation led to the petitioner being considered the owner of the goods due to the importer's abandonment.

Court's directive on re-export permission and initiation of necessary actions:
After considering arguments from both parties, the court directed the respondents to permit the petitioner to re-export the goods. The court emphasized the need for expedited actions against any legal infringements while allowing the re-export. The decision aimed to address the petitioner's demurrage charges and instructed authorities to consider the request unless legal impediments existed.