2016 (7) TMI 862 - HC - Customs

Classification of import of Crestron MTX-3 Panel System - clearance of a remote control for Home Theatre, Home Automation etc. - contravention of prohibition imposed under the Indian Wireless Telegraphy Act, 1933 - confiscated under section 111 (d) of the Customs Act, 1962 - Held that - Taking into consideration of the fact that the order of the Commissioner (Appeals) was passed on 18.02.2016 and the Appeal has been presented before the CESTAT on 30.05.2016, within the period of limitation and the appeal having been numberred, this Court is of the view that the respondents should be given a reasonable time to move the Petition for Stay before the CESTAT, failing which the goods should be released in terms of the order passed by the Commissioner (Appeals). Accordingly, the respondents are directed to release the goods in question by assessing the Bills of Entries in terms of the order passed by the Commissioner (Appeals) dated 18.02.2016, after a period of thirty days from the date of receipt of a copy of this order. This time is granted to the Department to enable them to move the Petition for Stay before the CESTAT, if so advised in the interregnum. If the respondents are unable to obtain any orders of stay from the CESTAT, they shall, on expiry of the 30th day from the date of receipt of a copy of this order, assess bills of entries in terms of the order passed by the Commissioner (Appeals) and release the goods within a period of two days therefrom.

Summary

Issues:
1. Directing respondents to assess and clear bills of entry based on Commissioner of Customs' order.

Analysis:
The petitioner filed Writ Petitions to compel the respondents to assess and clear bills of entry dated 19.09.2015 & 04.09.2015 in accordance with the order issued by the Commissioner of Customs (Appeals-I) in Appeal No. 116/2016 dated 18.02.2016. The petitioner submitted self-assessed bills of entries for the clearance of certain items, including a remote control for Home Theatre and Home Automation. The Original Authority raised concerns regarding the classification of the items and requested Equipment Type Approval for one specific item, the Crestron MTX-3 Panel System. As the petitioner did not purchase this item, the Original Authority confiscated it under the Customs Act, 1962, and imposed a penalty of &8377; 10,000 under section 112(a) of the Act.

The petitioner appealed these decisions, arguing that the goods did not require a license, were not covered under specific restrictions, and had been imported previously without issue. The Commissioner of Customs (Appeals-I) reviewed the case and on 18.02.2016, allowed the appeal, stating that the Crestron MTX-3 Panel System could be freely imported without the need for clearance or license from the relevant authority. Following this decision, the petitioner requested the release of the consignment based on the Commissioner's order.

During subsequent hearings, it was revealed that the respondents had filed an appeal before the CESTAT against the Commissioner's order, and the matter was pending. Considering the timelines and the appeal process, the Court directed the respondents to release the goods within thirty days from the date of the order, unless a stay was obtained from the CESTAT. If no stay was granted, the goods were to be released within two days after the thirty-day period.

In conclusion, the Court disposed of the Writ Petitions, instructing the respondents to adhere to the Commissioner's order and release the goods accordingly. No costs were awarded, and connected Miscellaneous Petitions were closed as a result.