2022 (9) TMI 1405 - HC - Customs

Seeking permission for withdrawal of petition - classification of goods - consignment/cargo of Iron Ore Fines - Fe content in the consignment - HELD THAT - The petition is dismissed with liberty sought.

Summary

Issues:
Challenge to imposition of custom duty based on provisional assessment under Section 18(2) of the Custom Act, 1962.

Analysis:
The judgment delivered by the High Court of Orissa involved a challenge by an exporter against an order imposing custom duty of Rs.8,57,60,892, calculated at 30% on the transaction value of Rs.39,91,58,867. This imposition was made following the finalization of provisional assessment conducted under Section 18(2) of the Custom Act, 1962. The assessment was based on reports from CRCL, Kolkata, and CRCL, New Delhi, which indicated the Fe content in the cargo of Iron Ore Fines to be above 58%. However, during the proceedings, it was revealed that a subsequent retesting of the consignment, authorized by a permission memo dated 21st July, 2022, conducted by CRCL, Mumbai, showed the Fe content to be below 58%, leading to a classification that attracts "Nil" Customs Duty.

The petitioner's counsel requested permission to withdraw the writ petition challenging the original order dated 28th June, 2022, and sought to file a fresh petition with improved particulars based on the new findings. The Senior Standing Counsel for Central Excise and Customs did not oppose this request. Consequently, the High Court allowed the withdrawal of the writ petition with the liberty for the petitioner to file a new petition with better details. This decision was made in light of the revised information provided by the subsequent retesting, which significantly impacted the classification and duty imposition on the consignment.