2015 (8) TMI 1486 - HC - Customs

Provisional release of detained consignment - imported goods, Furnitures - section 110A of Custom Act 1962 read with Customs (Provisional Duty Assessment Regulations) 2011 - HELD THAT - Provisional release in terms of Section 110 A of the Customs Act, 1962 read with Customs (Provisional Duty Assessment) Regulations 2011 could have been made, followed by further proceedings. Hence, the detained consignment shall be released on payment of ₹ 2,59,688/- being 50% of the differential duty and for the remaining 50% of the differential duty, a bond be executed by the petitioner and on such compliance, the goods shall be released forthwith - Petition disposed off.

Summary

Issues:
1. Assessment and clearance of imported goods under Custom Act 1962.
2. Dispute over the declared value of imported goods.
3. Provisional release of detained consignment.

Analysis:

Assessment and clearance of imported goods under Custom Act 1962:
The petitioner filed a writ petition seeking a writ of mandamus to direct the respondents to assess and clear the imported furniture covered under a specific Bill of Entry. The petitioner imported furniture from Malaysia, but the officers informed their clearing agents that the declared value was not acceptable for assessment, indicating a dispute over the valuation of the goods. Despite the petitioner's willingness to pay the duty under protest, no decision was made regarding the assessment. The court directed the release of the detained consignment upon payment of 50% of the differential duty, with the remaining 50% to be covered by a bond executed by the petitioner. The respondent was instructed to issue a speaking order and the petitioner given the right to challenge it legally.

Dispute over the declared value of imported goods:
The petitioner's clearing agents were informed by the officers that the declared value of the imported furniture was not acceptable for assessment, leading to a disagreement over the valuation. The petitioner communicated their willingness to pay the duty as demanded under protest, but no decision was made regarding the assessment. The court ordered the release of the detained consignment upon payment of 50% of the differential duty, with the petitioner required to execute a bond for the remaining 50% of the duty.

Provisional release of detained consignment:
The court invoked Section 110A of the Customs Act, 1962, and Customs (Provisional Duty Assessment) Regulations 2011, to order the provisional release of the detained consignment. The petitioner was directed to pay 50% of the differential duty and execute a bond for the remaining 50% to secure the release of the goods. Additionally, the respondent was instructed to issue a speaking order to be served on the petitioner, allowing the petitioner to challenge it through legal means. The writ petition was disposed of accordingly, with no costs imposed.

This judgment addresses the issues of assessment and clearance of imported goods, a dispute over the declared value of goods, and the provisional release of a detained consignment under the Custom Act 1962, providing a detailed resolution for each aspect raised in the petition.