2022 (1) TMI 1229 - HC - Customs

Withdrawal of the Ex-bond Bill of Entries - Reinstatement of Bill of Entries to warehousing Bills of Entries - HELD THAT - When Mr Banerjee was asked whether the impugned assessment/determination of duties is further appealable or any other remedy available against determination or rejection of the petitioner s application for withdrawal of the aforesaid bond for Bill of Entries in question, he could not show any provision for redressal of the petitioner s grievance. The only scope for consideration in this writ petition is with regard to consideration of the petitioner s application for cancellation or withdrawal of the Ex-bond relating to Bill of Entries in question which, sitting in writ court, cannot be acted as an adjudicating authority - the matter is remanded to the respondent concerned to consider the petitioner s application for cancellation/withdrawal of the Ex-bond relating to Bill of Entry in question afresh in accordance with law by passing a speaking order, after giving an opportunity of hearing to the petitioner or its authorised representative, within four weeks from the date of communication of this order. Petition allowed by way of remand.

Issues:
Challenge to impugned orders dated October 27, 2021 and December 4, 2021 by Customs authority regarding import of goods. Petitioner's application for withdrawal of Ex-bond Bill of Entries and reinstatement to warehousing Bills of Entries. Entitlement for exemption on imported goods based on Notification No. 48/2021-Customs. Consideration of petitioner's application for cancellation/withdrawal of Ex-bond by Customs authority. Scope for appeal or remedy against assessment/determination of duties and rejection of petitioner's application.

Analysis:
The petitioner challenged the impugned orders dated October 27, 2021 and December 4, 2021 passed by the Customs authority concerning the import of goods. The petitioner sought withdrawal of the Ex-bond Bill of Entries and reinstatement to warehousing Bills of Entries. The Customs authority rejected the petitioner's application on October 27, 2021, and communicated the inability to consider the withdrawal on December 4, 2021. The petitioner claimed entitlement to exemption on the imported goods based on Notification No. 48/2021-Customs issued by the Ministry of Finance, Government of India.

The Customs authority argued that once the assessment is completed, and duty is determined and accepted by the petitioner, there is no scope for considering the withdrawal application. The advocate for the Customs authority could not provide any provision for redressal against the determination or rejection of the petitioner's application. The petitioner proposed to pay 50% of the duty in cash and the remaining 50% through a bank guarantee to safeguard the interests of all parties involved.

The court, after considering the submissions, concluded that the scope of the writ petition was limited to the consideration of the petitioner's application for cancellation or withdrawal of the Ex-bond related to the Bill of Entries. The court declined to act as an adjudicating authority and remanded the matter to the Customs authority for fresh consideration of the withdrawal application in accordance with the law. The Customs authority was directed to pass a speaking order after providing an opportunity for a hearing to the petitioner or its representative within four weeks.

Furthermore, the court instructed that if the petitioner deposited 50% of the duty in cash and the remaining 50% through a bank guarantee within seven days, subject to the satisfaction of the authority, the goods in question should be released within 72 hours. This payment arrangement was specified to be without prejudice to the rights and interests of the parties and subject to the final outcome of the Customs authority's decision on the withdrawal application. The writ petition was disposed of without calling for affidavits, and the allegations contained therein were deemed denied by the respondents.

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