2017 (8) TMI 768 - HC - Customs

Rate of customs duty - prawn feed - release of seized consignment - Held that - The chemical composition of the consignment imported was allowed to be checked by the authorities by the order dated January 10, 2017. The report filed in Court by the authorities does not demonstrate that the prawn feed imported by the petitioners has the chemical composition attracting 30% Customs duty. The form of prawn feed has also not been substantiated by the Department. The claim of the Department is not sustained by the report filed in Court - petitioners are therefore liable to pay Customs duty at 5% - the Customs Authorities will release the consignment imported by the Bill of Entry Nos. 6834094, dated September 23, 2016 and 6856923, dated September 26, 2016, in the event the petitioners have paid Customs duty at 5% - petition allowed - decided in favor of petitioner.

Summary

Issues: Release of consignment, Customs duty classification, Chemical composition analysis, Customs duty payment, Claim for damages

Release of Consignment:
The petitioners sought the release of a consignment imported by bill of entries dated September 23, 2016, and September 26, 2016, consisting of prawn feed. The Customs Authorities were directed to release the consignment if the petitioners had paid Customs duty at 5%.

Customs Duty Classification:
Two varieties of Customs duties were leviable on prawn feed - 5% and 30%. The classification depended on the chemical composition and form of the prawn feed. For the prawn feed to attract a Customs duty of 30%, the quantity of Vitamin A and Vitamin AD-3 combined should not exceed 1.5% of the Vitamin Pre-mixes on a weight basis.

Chemical Composition Analysis:
The authorities were allowed to check the chemical composition of the imported consignment. The report presented by the authorities did not establish that the prawn feed met the criteria for attracting a 30% Customs duty. The form of prawn feed was also not substantiated by the Department, leading to the conclusion that the petitioners were liable to pay Customs duty at 5%.

Customs Duty Payment:
The petitioners claimed that they had already paid the Customs duty at 5%. If the payment was confirmed by the Customs Authorities, they were directed to take immediate steps for the release of the consignment within seven days from the date of the court order.

Claim for Damages:
The claim for damages by the petitioners was left open to be adjudicated at a proper forum. The court disposed of the case with no order as to costs, indicating that the petitioners were successful in their plea for the release of the consignment at a lower Customs duty rate.