2012 (11) TMI 695 - HC - Customs

Writ of Mandamus, directing the respondents to release goods - import of used / secondhand Digital Multifunction Print and Copying Machines - held that - Competent authority of the Customs Department viz.,Assessing Authority is directed to assess the goods in terms of the Customs Act with the relevant Foreign Trade Policy as may be applicable and if it is found that the issue requires adjudication, the same shall be adjudicated taking into consideration the practice that is followed in similar cases without discrimination. Such exercise to be done preferably within a period of three weeks from the date of receipt of a copy of this order. The petitioners in each case represented by their counsel undertake that they will co-operate with the Customs Department for early disposal of the matter - writ petition is disposed of in terms of the direction issued - connected miscellaneous petition is closed. No costs.

Summary

Issues:
Release of imported goods under Free as Second Hand Capital goods without restrictions and payment of applicable duties.

Analysis:
The Writ Petition sought a Mandamus to direct the release of 116 Units of used Digital Multifunction Print and Copying Machines imported under Free as Second Hand Capital goods. The issue was covered by a previous order where importers of similar goods had faced delays due to Customs Department pending assessment and clearance. The Court emphasized that the applicability of the circular issued by the Director General of Foreign Trade and the clearance of goods should be decided by the Assessing Authority under the Customs Act. The Court directed the Customs Department to assess the goods in question and adjudicate if required within three weeks, with the importers agreeing to cooperate for early disposal.

The Court highlighted that the Customs Department should decide whether the goods are restricted or freely importable and adjudicate accordingly under the Customs Act and relevant Foreign Trade Policy. It was noted that if the goods are found to be restricted, the authority should adjudicate and release them to prevent demurrage charges. The Court emphasized that the Customs Department has the authority to decide the importability of goods, including any restrictions, and to adjudicate for confiscation and release as necessary. The Customs Department agreed to assess and adjudicate the matter as per the provisions of the Customs Act, with the Court directing the Assessing Authority to assess the goods within three weeks.

The judgment concluded by disposing of the writ petition in line with the direction issued in a previous decision, emphasizing the need for the Customs Department to assess and adjudicate the goods promptly. The importers were required to cooperate with the Customs Department for the timely resolution of the matter. The decision underscored the importance of following the Customs Act and relevant policies in assessing and releasing imported goods, ensuring a fair and efficient process without discrimination.