2018 (5) TMI 689 - HC - Customs

Mis-declaration of goods - allegation of import of Nylon Flocked Member Tricot Fabrics in the guise of lining material - petitioner complains that though it is ready and willing to pay all applicable dues, the consignments are not allowed to be cleared nor are respondent nos. 1 to 3 issuing the detention certificate - Held that - The instant petition is pre-mature because the goods have not been allowed to be completely tested and examined. The first check examination itself raised the serious doubt - when such is the finding reached by the respondents on examination of the previous import material and the acts indulged in by the similar importers, then, this is not a case where we can agree with the petitioner s counsel that the refusal is ex-facie illegal, arbitrary and without any justification or legal basis - petition dismissed.

Summary

Issues:
Challenge to inaction of authorities in not allowing clearance of imported goods.

Analysis:
The petitioner filed a petition under Article 226 challenging the authorities' inaction in not allowing clearance of certain imported goods. The petitioner ordered lining material from a foreign supplier, but the goods were suspected to be different upon arrival at Bombay Port. The authorities refused clearance, citing similarities with another importer's consignments and discrepancies in the goods. The petitioner argued that the goods were lining material based on technical phrases and test reports. The authorities justified their refusal based on suspicions of mis-declaration and illegal importation of high-quality fabric for local markets. The examination revealed the goods to be Nylon Flocked Fabric, not permitted by the import license. The authorities contended that the petitioner's involvement in illegal activities was suspected, leading to the refusal of clearance.

Legal Interpretation:
The petitioner relied on technical definitions and test reports to support their claim that the goods were lining material. However, the authorities maintained that the goods were not used in the leather industry as per the import license and were suspected to be part of an illegal scheme to import high-quality fabric for unauthorized purposes. The court noted that the petitioner withdrew a previous petition unconditionally and allowed inspection of the goods without protest. The authorities' findings on discrepancies in the goods and suspicions of illegal activities were considered valid grounds for the refusal of clearance. The court agreed with the respondents that interference in writ jurisdiction was not warranted based on the factual conclusions reached by the authorities.

Conclusion:
After considering the arguments and factual findings, the court dismissed the writ petition, stating that there was no merit in the petitioner's claims. The rule was discharged, and no costs were awarded. The judgment upheld the authorities' decision to refuse clearance of the imported goods based on suspicions of mis-declaration and illegal activities, highlighting the importance of compliance with import regulations and the consequences of unauthorized imports.