2016 (7) TMI 717 - HC - Customs

Provisional release of the imported goods - Proof of ownership - Held that - the respondents are directed to release the consignment as substantial amount of money has already been collected from the petitioner and retained with the Department. The goods shall be released provisionally subject to the final adjudication of the show cause notice dated 29.01.2016 along with the Addendum dated 10.02.2016. It is needless to state that the petitioner has to cooperate in the adjudication process. The goods covered in the Bill of Entry shall be cleared within a period of fifteen days from the date of receipt of a copy of this order.

Summary

Issues:
1. Challenge to rejection of request for provisional release of imported goods.
2. Show cause notice issued during pendency of the writ petition.
3. Re-classification of goods and differential duty proposed in the show cause notice.
4. Release of consignment subject to final adjudication.
5. Request for Detention Certificate for waiver of demurrhage/detention charges.

Analysis:
1. The petitioner challenged the rejection of the request for provisional release of imported goods in a writ petition. The impugned order under Section 110-A of the Custom Act was only partially challenged, specifically the portion rejecting the request due to the untraced actual owner of the goods. The court noted developments during the case, including a show cause notice issued to the petitioner and others. The petitioner, M/s.Sree Sai Inc., was issued notices regarding the Bill of Entry for clearance of goods declared as Blemished Rubber Slope Belts.

2. The show cause notice proposed re-classifying the goods as Used Rubber Conveyor Belts with a differential duty. The Department alleged Mr. Dhanasekaran as the mastermind behind the operation involving various firms. The court acknowledged the ongoing adjudication process based on the show cause notice issued. Despite the usual practice of imposing conditions for provisional release, the court directed the release of the consignment as significant sums had already been collected from the petitioner.

3. The court ordered the provisional release of the goods pending final adjudication of the show cause notice and addendum. The petitioner was instructed to cooperate in the adjudication process, and the goods were to be cleared within fifteen days of the court order. Additionally, the petitioner requested a Detention Certificate for waiver of demurrhage/detention charges, which was to be considered by the respondents in accordance with the law.

4. The writ petition was disposed of with the above directions, and no costs were awarded. The connected miscellaneous petition was closed as a result of the judgment. The court's decision focused on ensuring the provisional release of the goods while the adjudication process continued, emphasizing the need for cooperation from the petitioner and compliance with the specified timelines for clearance.