2020 (9) TMI 1191 - HC - Customs

Effect of issuance of notification dated 14th September, 2020 on export of goods, which were loaded and were with the customs authority, prior to issuance of the said notification - Onions - validity of shipping bills - HELD THAT - It appears that the consignments of the Petitioners were with the customs authority prior to issuance of the impugned notification. While the decision taken by the Respondents are appreciated, to mitigate the hardship of those exporters where consignments were already loaded for export, it would be in the interest of justice if the same benefit is extended to the goods of the Petitioners because according to them their consignments were with the customs authority prior to issuance of the notification. It is expected that a decision to be taken expeditiously as admittedly the goods are perishable - also,the shipping bills prior to issuance of the impugned notification shall not be construed to have lapsed till the matter is decided - Stand over to 29th September, 2020.

Summary

Issues:
1. Export of onions prior to the issuance of a notification prohibiting export.
2. Validity of shipping bills for export consignments.
3. Extending benefit to exporters whose consignments were with customs authority before the notification.
4. Decision on allowing export of perishable goods.

Issue 1: Export of onions prior to the issuance of a notification prohibiting export
The petitioners raised a grievance that their bills for the export of onions were issued before the notification prohibiting export was released on 14th September 2020. They sought permission to export their goods, which were not yet loaded. The court acknowledged the decision by the Respondents to allow the export of consignments loaded before the notification. However, the petitioners requested the same benefit as their consignments were with the customs authority before the notification.

Issue 2: Validity of shipping bills for export consignments
The petitioners highlighted that the validity of their shipping bills would expire on 26th September 2020, while their goods were yet to be loaded for export. The court noted the perishable nature of the goods and emphasized the need for a swift decision to prevent any loss.

Issue 3: Extending benefit to exporters whose consignments were with customs authority before the notification
The court appreciated the decision to allow the export of consignments already loaded for export but stressed the importance of extending the same benefit to the petitioners whose goods were with the customs authority before the notification. It was deemed necessary in the interest of justice to provide equal treatment to all affected exporters.

Issue 4: Decision on allowing export of perishable goods
Considering the perishable nature of the goods, the court directed that the shipping bills issued before the notification would remain valid until a final decision was made. The court instructed the Respondents' counsel to obtain instructions and update the court on the matter by the next hearing scheduled for 29th September 2020.

This judgment by the Bombay High Court addressed the concerns raised by the petitioners regarding the export of onions in light of a notification prohibiting such export. The court emphasized the need for fair treatment of all exporters, especially those with perishable goods, and directed swift action to prevent any loss or hardship. The decision highlighted the importance of upholding justice and ensuring that exporters are not unfairly affected by regulatory changes.