2023 (2) TMI 1282 - HC - Customs

Seeking release of Frames and Slides imported - import permission granted by the competent authority in the office of Directorate General of Foreign Trade (DGFT) - HELD THAT - The matter requires a detailed hearing. The Learned Senior Counsel for the Writ Petitioner has stated before this Court that most of the supplies are to be made to Organizations under the Government of India i.e. Defence Para Military Forces and Sports Ministry. It is stated that the Petitioner has already paid more than a sum of Rs. 1 crore as demurrage charges on the consignment and other related consignments which are the subject matter of the present LPA. It has also been stated that the consignment has been opened by the Delhi Police for inspection because of which rusting of small parts is taking place. As an interim measure the entire consignment which is subject matter of LPA 695/2022 be handed over to the Writ Petitioner on Supratnama and the Writ Petitioner is directed not to dispose of even a single item therein without the directions of this Court. List the present LPAs on 10.05.2023.

Summary

Issues:
1. Challenge to judgment allowing release of imported goods.
2. Dispute over issuance of Form X for imported items.
3. Demurrage charges and inspection-related issues affecting imported consignment.

Analysis:
1. The case involves the challenge by the Union of India against a judgment allowing the release of Frames and Slides imported by the manufacturer of arms, as per import permission granted by the DGFT. The Learned Single Judge had ruled in favor of the Writ Petitioners, leading to the filing of LPA 695/2022 by the Union of India to contest the judgment.

2. A key point of contention is the issuance of Form X during the litigation period. While the Union of India claims to have granted Form X for the Frames and Slides, the Writ Petitioner disputes this assertion, alleging that Form X has been issued for the entire consignment. This dispute adds complexity to the case and raises questions about the accuracy of documentation and permission processes.

3. The matter is complicated further by the financial implications faced by the Writ Petitioner, who has incurred significant demurrage charges exceeding Rs. 1 crore on the consignment and related items. Additionally, concerns about rusting due to inspection by the Delhi Police have been raised, indicating potential damage to the imported goods. The urgency of the situation is highlighted by the need for interim measures, leading to the directive to hand over the entire consignment to the Writ Petitioner on Supratnama, with strict instructions against disposal without court approval.

This detailed analysis of the judgment highlights the legal complexities surrounding the release of imported goods, disputes over documentation, and the practical challenges faced by the parties involved, emphasizing the need for careful consideration and interim measures to address the pressing issues at hand.