2019 (5) TMI 245 - HC - Customs

Release of Consignments - BLACK MAPTE, Beans of the species Vigna mungo (L.) Hepper or Vigna radiata (L.) Wilczek Beans of the species Vigna mungo (L.) Hepper or vigna radiata (L.) Wilczek (Urad Dal / Moong Dal - 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

Summary

Issues Involved:
1. Mandamus for the release of imported goods.
2. Issuance of a Detention Certificate for waiver of Demurrage and Container Detention Charges.
3. Relevant date for reckoning the date of imports.
4. Embargo on the import of consignments of dhalls and peas.
5. Waiver of demurrage charges.

Issue-Wise Detailed Analysis:

1. Mandamus for the Release of Imported Goods:
The petitioner sought a Mandamus for the release of imported "BLACK MAPTE, Beans of the species Vigna mungo (L.) Hepper or Vigna radiata (L.) Wilczek (Urad Dal / Moong Dal)" under two Bills of Entry dated 07.02.2019 and 11.02.2019. The Court referenced a similar case, M/s. Royal Impex V. Commissioner of Customs, where the petitioners also sought the release of imported 'Peas' and 'Dhall' under earlier Court orders. The Court noted that the facts and defenses were uniform across these cases, and the stay orders on relevant notifications were in force at the time of import.

2. Issuance of a Detention Certificate for Waiver of Demurrage and Container Detention Charges:
The petitioner requested a Detention Certificate for waiver of Demurrage and Container Detention Charges under Regulation 6(1)(I) of Handling of Cargo in Customs Areas Regulations 2009. The Court, referencing the Royal Impex case, noted that the goods were detained despite a stay on the notifications. The Court concluded that the consignments should be released conditionally upon the petitioner remitting the duty component and furnishing a bank guarantee for 10% of the invoice value.

3. 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. It concluded that Regulation 9.11 of the Foreign Trade Policy specifies the date of Bill of Lading as the relevant date. This interpretation was supported by the Supreme Court's judgment in Union of India V. Asian Food Industries, which emphasized that a vested or accrued right cannot be taken away by a policy change.

4. Embargo on the Import of Consignments of Dhalls and Peas:
The Court noted that the import of peas and dhalls was subject to restrictions under various notifications. For peas, the notifications were issued for specific periods in 2018, restricting the quantum of imports. For dhalls, notifications in 2017 and 2018 imposed similar restrictions. The Court found that the imports in question were covered by Bills of Lading drawn between 01.10.2018 and 31.12.2018, during which the stay orders on the notifications were in effect. Therefore, the consignments were not subject to the embargo.

5. Waiver of Demurrage Charges:
The petitioner also sought a waiver of demurrage charges incurred due to the detained consignments. The Court referred to Rule 6(l) of the Handling of Cargo in Customs Areas Regulations, 2009, which states 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.

Conclusion:
The Court ordered the release of the consignments upon the petitioner fulfilling the conditions of remitting the duty component and furnishing a bank guarantee for 10% of the invoice value. The authorities were allowed to initiate proceedings regarding the transactions, with the petitioner required to appear and submit their case. The Court also granted a waiver of demurrage charges in accordance with the relevant regulations. The Writ Petition was disposed of, and the connected Miscellaneous Petition was closed with no costs.