2019 (4) TMI 950 - HC - Customs

Release of Consignments - imports of Pigeon Peas (Cajanus Cajan)/ Toor Dal (Toor Whole) - issuance of Detention Certificate for waiver of Demurrage and Container Detention Charges in terms of Regulation 6(1)(1) of Handling of Cargo in Customs Areas Regulations 2008 - HELD THAT - The petitioner will remit the entire duty component of the consignments imported by him in case were such duty is leviable as per paragraph 15(iii) above along with a bank guarantee for the 10% of the invoice value. In cases where the duty impact is neutral, the petitioner shall furnish a bank guarantee for the 10% of the invoice value. Upon satisfaction of the aforesaid conditions, the consignment shall be released forthwith. Waiver of Demurrage and Container Detention Charges - Held that - In the light of Rule 6(l) of the Handling of Cargo in Customs Areas Regulations, 2009, which provides that the Customs Cargo Provider shall not, subject to any other law for the time being in force, charge any rent or demurrage on the goods seized or detained or confiscated by the Superintendent of Customs or Appraiser or Inspector of Customs or Preventive officer or examining officer, as the case may be, there shall be a waiver of demurrage charges. Petition disposed off.

Issues Involved:
1. Release of imported consignments of 'Pigeon Peas (Cajanus Cajan)/Toor Dal (Toor Whole)'.
2. Issuance of a 'Detention Certificate' for waiver of Demurrage and Container Detention Charges.
3. Determination of the relevant date for reckoning the date of imports.
4. Embargo on the import of consignments of dhalls and peas.
5. Liability to duty of the imported goods.

Detailed Analysis:

1. Release of Imported Consignments:
The petitioner sought a Mandamus for the release of 'Pigeon Peas (Cajanus Cajan)/Toor Dal (Toor Whole)' imported under specific Bills of Entry. The court referred to a previous order in a similar case (M/s.Royal Impex V. Commissioner of Customs) where the identical issue was considered. The court concluded that the consignments in question are liable to be released conditionally upon the petitioner remitting the entire duty component and furnishing a bank guarantee for 10% of the invoice value.

2. Issuance of a 'Detention Certificate':
The petitioner requested the issuance of a 'Detention Certificate' for waiver of Demurrage and Container Detention Charges under Regulation 6(1)(l) of the Handling of Cargo in Customs Areas Regulations 2009. The court acknowledged this regulation, which stipulates that no rent or demurrage should be charged on goods seized or detained by customs authorities. Consequently, the court ordered a waiver of demurrage charges.

3. Determination of the Relevant Date for Reckoning the Date of Imports:
The court examined whether the relevant date for reckoning the date of imports would be the date of Bill of Lading or Bill of Entry. Regulation 9.11 of the Foreign Trade Policy specifies that the date of Bill of Lading is the relevant date. The court also referenced the Supreme Court's judgment in Union of India V. Asian Food Industries, which supported the view that a vested or accrued right cannot be taken away by a policy change. Therefore, the date of Bill of Lading was deemed the relevant date for reckoning imports.

4. Embargo on the Import of Consignments of Dhalls and Peas:
The court noted that the import of both products had been subject to restrictions under various notifications. For dhalls, notifications dated 21.08.2017 and 04.05.2018 restricted the quantum of imports, but the operation of these notifications had been stayed by the court. For peas, notifications from 25.04.2018, 02.07.2018, and 28.09.2018 placed restrictions on imports. The court found that the transactions of imports had crystallized before the relevant notifications, and similar consignments had been permitted clearance. Thus, the court concluded that there was no embargo on the import of the consignments in question during the specified periods.

5. Liability to Duty of the Imported Goods:
The court listed the duty liabilities for different varieties of peas and dhalls:
- Yellow Peas, Green Peas, Dun Peas, Kaspa Peas: 50%
- Pigeon Peas/Toor Dal: 10%
- Urad Dal and Moong Dal: Nil

The petitioner was required to remit the entire duty component where applicable and furnish a bank guarantee for 10% of the invoice value for the release of the consignments.

Conclusion:
The court ordered the release of the consignments upon fulfillment of specified conditions, waived demurrage charges, and clarified the relevant date for reckoning imports as the date of Bill of Lading. The court also acknowledged the stay of operation of the relevant notifications and the absence of an embargo on the imports in question. The writ petition was disposed of in these terms, and the authorities were permitted to initiate proceedings if necessary.

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