2018 (12) TMI 1370 - HC - Customs

Provisional release of the goods - finalization of assessment of past imports not done - Held that - On one hand, there is thus considerable delay in finalizing the assessment of the past import and on the other hand, the petitioner s future imports are allowed to be cleared under strict conditions.On one hand, there is thus considerable delay in finalizing the assessment of the past import and on the other hand, the petitioner s future imports are allowed to be cleared under strict conditions. It would be open for the respondent to issue show cause notice/s for finalizing the past assessment of the imports which will be done within four weeks from today - Subject to the petitioner cooperating with such show cause notice proceedings, final order of adjudication shall be passed within three months of the petitioner filing reply to the show cause notice/s - The future consignments of the petitioner of the same goods may be released upon the petitioner furnishing bond of the 100% of the value of the goods and further furnishing 25% bank guarantee for the differential duty payable thereon. Petition disposed off.

Summary

Issues Involved:
1. Dispute over the correct value of imported goods
2. Delay in finalizing assessment of past imports
3. Conditions for future import clearance

Analysis:
1. Dispute over the correct value of imported goods:
The petitioner imported segments and blades, leading to a disagreement with the Custom Authorities regarding the value of the goods. The petitioner sought provisional release of goods for final assessment of bill of entries. The High Court had directed the Custom Authorities to finalize the assessment within 8 weeks from the order date. Despite the goods being released on a 100% bank guarantee, the Department passed a final order without notice, prompting the petitioner to challenge the decision. The Commissioner of Customs later directed future consignments to be cleared at a specific value per kg, causing further contention.

2. Delay in finalizing assessment of past imports:
The petitioner's counsel argued that past import assessments were not being finalized by the authorities, while for future imports, clearance was subject to a specific duty deposit. The Department's counsel mentioned issuing a fresh show cause notice for past imports assessment and emphasized the need for safeguards before clearing future imports. The Court noted significant delays in finalizing past import assessments, with no show cause notice issued. The judgment highlighted the necessity for the Department to complete past import assessments promptly.

3. Conditions for future import clearance:
In light of the circumstances, the Court issued specific directions for the resolution of the issues. The Department was instructed to issue show cause notices for finalizing past import assessments within four weeks. Upon the petitioner's cooperation with the proceedings, the final order of adjudication was to be passed within three months of filing a reply to the show cause notices. Additionally, future consignments were permitted to be released upon the petitioner furnishing a bond for the value of goods and a bank guarantee for the differential duty payable.

Overall, the judgment addressed the ongoing dispute regarding imported goods' value, highlighted the delays in assessment processes, and provided clear directives for resolving past and future import clearance issues.