2018 (9) TMI 1862 - HC - Customs

Detention of imported goods - counsel for the Revenue contended that if the importer i.e. the IEC Holder purchases it, the goods could be released - HELD THAT - This Court is of the opinion that since the goods have been in detention for more than a year and no irregularity of any kind whatsoever has been indicated by the DRI and furthermore, that the DRI has also expressed no objection for the release of the goods upon payment of the differential duty, if any, the imported goods should be released to the present petitioners who are undoubtedly the actual beneficiaries of the import. In the event, the petitioners deposit the differential duty, the goods shall be released within a week thereafter. This is an unfortunate case where the respondents/Customs authorities intentionally appeared to have omitted issuing the detention certificate. After considering the application for waiver of the demurrage/detention charges, if any liability accrues, that shall be on account of the customs authorities in the circumstances of the case. Petition allowed.

Summary

Issues: Detention of goods, Importation irregularities, Release of goods, Demurrage/detention charges waiver

In the judgment delivered by the Delhi High Court, the petitioner challenged the detention of imported goods through Bills of Entry dated 11.10.2017 by M/s Manoj Enterprises. The goods were detained by panchnama dated 17.10.2017 and 30.07.2017 and handed over to the custodian/CELEBI. The goods were found to be non-prohibited and conformed to the declaration filed, as per the Directorate of Revenue Intelligence's letter dated 11.04.2018. The only irregularity found was the use of a dummy IEC for importation. The DRI's report indicated that the petitioner and another individual were the actual beneficiaries of the consignments, and the DRI had no objection to releasing the goods to the concerned beneficiaries upon payment of any differential duty. The Court held that since no irregularities were found, and the DRI had no objection to release the goods to the actual beneficiaries, the imported goods should be released to the petitioners upon depositing the differential duty, if any, within a week.

The Court noted that the Customs authorities had intentionally omitted issuing the detention certificate, and any liability accruing from the waiver of demurrage/detention charges, if applicable, would be on account of the Customs authorities. The writ petition was allowed, and the goods were ordered to be released to the petitioners upon payment of the required duty within a week.