2020 (1) TMI 9 - HC - Customs

Release of imported goods from Pakistan - rate of duty - Vires of N/N. 5/2019-Customs dated 16.02.2019 - consignments of goods from Pakistan had entered the territory of India and the bill of entry with the prescribed rate of duty was electronically generated on 16.02.2019 before impugned notification enhancing the duty @ 200% was issued in late evening on the same date - prayer for release of the imported goods upon payment of the rate of duty assigned in the bill of entry instead of the subsequently enhanced duty @ 200%. HELD THAT - It is not in dispute that the petitioner is entitled to the relief in terms of the judgment in the case of M/S RASRASNA FOOD PVT. LTD. VERSUS THE UNION OF INDIA AND ORS. 2019 (8) TMI 1400 - PUNJAB AND HARYANA HIGH COURT where it was held that Without going into vires of impugned notification, it is held that all the Petitioners would be liable to pay duty as was applicable at the time of filing of bill of entry coupled with the fact of the imported goods having entered territory of India on 16.02.2019 prior to the issuance of the impugned notification. The Respondent shall release goods within seven days on payment of duty as declared and assessed, if not already paid, ignoring the impugned N/N. 5/2019. The petitioner would be entitled to same relief as in the case of M/s Rasrasna Food Pvt. Ltd. as also in view of the interpretation of the provision of Section 15 of the Customs Act, 1962 - the Respondents are directed to forthwith release the goods as directed by the Tribunal - petition allowed.

Summary

Issues:
Import of goods subject to enhanced duty rate after bill of entry generation.
Delay in releasing goods despite court judgment and tribunal order.
Validity of department's appeal filing process and writ jurisdiction invocation timing.

Issue 1: Import of goods subject to enhanced duty rate after bill of entry generation

The petitioner, a partnership firm engaged in importing "Dry Dates" from Pakistan, faced a situation where the bill of entry with the prescribed duty rate was electronically generated before an impugned notification was issued, enhancing the duty to 200% on the same date. The petitioner sought release of the goods at the original duty rate in line with a previous court judgment (CWP-11887-2019) and a subsequent tribunal order. The court acknowledged the entitlement of the petitioner to the relief based on the previous judgment and Customs Act interpretation, directing the immediate release of the goods by the department.

Issue 2: Delay in releasing goods despite court judgment and tribunal order

Although the tribunal had ordered the release of the goods within 7 days, there was a delay in actual implementation. The respondents did not contest the similarity of facts and relief claimed but cited the department's appeal filing process as the reason for the delay. The court, after hearing both parties, disregarded hyper-technical objections and emphasized the petitioner's entitlement to relief as per the previous judgment and Customs Act provisions. Consequently, the court allowed the writ petition and directed the immediate release of the goods, instructing the Custom department to issue a detention memo for facilitating the prompt release.

Issue 3: Validity of department's appeal filing process and writ jurisdiction invocation timing

The respondents raised concerns regarding the timing of invoking writ jurisdiction after the expiry of the appeal filing period and the pending departmental appeal against the tribunal's order. Despite these objections, the court focused on the substantive relief entitled to the petitioner based on the previous judgment and legal provisions. The court found in favor of the petitioner, emphasizing the importance of timely release of goods and directing the immediate action by the department for facilitating compliance with the court's order.

This judgment highlights the importance of adherence to court decisions, timely release of goods, and the entitlement of parties to relief based on legal interpretations and precedents. The court's decision to grant the requested relief and direct the immediate release of goods underscores the significance of upholding legal rights and ensuring prompt enforcement of judicial orders in matters concerning import duties and customs regulations.