2015 (4) TMI 113 - HC - Customs

Classification of goods - Demand of differential duty - Detention of goods - Held that - Since the petitioner has paid the admitted amount and that the balance amount is only minimal, this Court, directs the petitioner to pay 20% of the differential amount and produce Bank Guarantee for the remaining amount. On such payment and production of Bank Guarantee, the respondents are directed to consider the case of the petitioner for release of the goods. Depending upon the outcome of interim order or final order that may be passed passed by the authority concerned, it is open to the respondents to proceed further in the matter. - Decided conditionally in favour of assessee.

Summary

Issues:
1. Re-assessment of bills of entry
2. Opportunity of hearing and notice issuance
3. Detention and demurrage charges waiver
4. Appeal by the Department
5. Payment of differential amount and Bank Guarantee

Re-assessment of bills of entry:
The petitioner, engaged in international trading, filed a Writ Petition seeking re-assessment of bills of entry dated 21.10.2014 in light of the Order in Appeal passed by the Commissioner of Customs (Appeals). The Commissioner had set aside the original assessment made by the Department, leading to the petitioner's appeal before the High Court for clearance of the goods.

Opportunity of hearing and notice issuance:
The petitioner contended that the assessment was carried out without granting an opportunity of hearing and without issuing a notice. The Commissioner allowed the appeal, emphasizing the importance of settled classification without disturbing it, as per Circular No.41/98. The High Court directed the Department to issue a proper Detention Certificate to waive detention and demurrage charges.

Detention and demurrage charges waiver:
The petitioner sought the waiver of detention and demurrage charges based on the favourable order from the appellate authority. The High Court directed the petitioner to pay 20% of the differential amount and produce a Bank Guarantee for the remaining amount to consider the release of goods.

Appeal by the Department:
The Department planned to prefer an appeal against the Commissioner's order, stating that the goods cannot be cleared until the appeal time is over. The Department required the petitioner to pay 50% of the differential amount and provide a Bank Guarantee for the remaining amount before granting the relief sought.

Payment of differential amount and Bank Guarantee:
The High Court directed the petitioner to pay the admitted amount and 20% of the differential amount, along with a Bank Guarantee for the remaining amount. Upon compliance, the Department was instructed to consider the release of goods, with the option to proceed further based on the outcome of any interim or final orders. The writ petition was disposed of accordingly, without costs.