2018 (3) TMI 282 - HC - Customs

Benefit of N/N. 146/94-Cus dated 13.07.1994 - customs duty exemption to sports goods imported by National Sports Federation or by a sports person of outstanding eminence for training - petitioner s grievance is that in spite of having produced the necessary documents to show that he is a renowned shooter and entitled for exemption from Customs Duty as per the Government of India notifications, the 4th respondent detained the consignment and for six days, the consignment was withheld under one pretext or the other. Held that - The purpose of adding the proviso to the condition b in column 3, SL.No.2 of the general exemption notification is clear. The purport and import of such inclusion by adding a provisio is to facilitate the process of acquiring the imported goods duty free. If the interpretation given by the 4th respondent has to be accepted, no emminent sportsman in this particular field would ever be able to import any of the ammunition of arms for the training purpose and he will be languishing in the corridors of Department of Youth affairs for years together for obtaining appropriate certification. This is precisely the reason for introducing the explanation to the said provision. The respondent cannot deny the fact that both the petitioners are Renowned Shooters and National Rifle Association certified so and considering the fact that one of them has done prior imports through the Bangalore Airport, the 4th respondent was not justified in denying the relief of exemption to the petitioner. Petition allowed.

Summary

Issues:
1. Customs Duty Exemption for sports goods imported by renowned shooters.
2. Requirement of certification from the National Rifle Association of India.
3. Detention of imported goods and imposition of Customs Duty.

Analysis:
1. The judgment revolves around the Customs Duty Exemption granted to specified sports goods imported by renowned shooters, as per General Exemption No.127 under notification No.146/94-Cus dated 13.07.1994. The notification specifies conditions for exemption, including the importer being recognized as a renowned shooter and producing a certificate from the National Rifle Association of India. The petitioners, both renowned shooters with notable achievements, met these criteria and were entitled to the exemption.

2. The requirement of certification by the National Rifle Association of India was crucial for the import of arms and ammunition for training purposes. Both petitioners had obtained the necessary certification from the association, confirming their status as renowned shooters. The Ministry of Commerce & Industry accepted this certification in place of the Sports Authority of India's certification, streamlining the process for renowned shooters to import goods duty-free.

3. The judgment addressed the issue of the detention of imported goods and the imposition of Customs Duty despite the petitioners fulfilling all requirements for exemption. The 4th respondent's actions were deemed unjustified as the petitioners had valid certification as renowned shooters and were entitled to the exemption. The court emphasized the importance of facilitating the import process for eminent sportsmen and criticized the denial of relief by the 4th respondent. As a result, the writ petitions were allowed, the impugned orders were set aside, and the respondents were directed to refund the customs duty collected from the petitioners along with admissible interest within three weeks.

This detailed analysis highlights the legal intricacies involved in the judgment, focusing on the Customs Duty Exemption criteria, certification requirements, and the unjust detention of imported goods despite valid documentation.