2020 (3) TMI 928 - HC - Customs

Validity of Rule 2(vi)(a) made vide Notification dated 1st March, 2019 - vires of Section 1(2) of the Environment (Protection) Act, 1986 - HELD THAT - The writ-applicant has to pay the ground rent, detention charges, demurrage charges etc. In such circumstances, a request is made that the writ-applicant may be permitted to atleast shift the 05 containers from the Mundra Port to his Industrial Unit of course subject to the condition that the writ-applicant shall not utilize the goods in any manner till the final adjudication of this litigation. Let Notice be issued to the respondents, returnable on 30/01/2020.

Summary

Issues:
Challenge to Notification dated 1st March, 2019 regarding import of raw materials in Kandla Special Economic Zone (KASEZ) - Ultra vires Environment (Protection) Act, SEZ Act, Foreign Trade Act, and Constitution of India.
Request to direct Customs officers to assess Bills of Entry for import of raw materials.
Permission to shift containers of imported raw materials from Mundra Port to Industrial Unit pending litigation.

Analysis:
The writ-application challenges a Notification dated 1st March, 2019, regarding the import of raw materials in KASEZ, alleging it to be ultra vires various acts and provisions, including the Environment (Protection) Act, SEZ Act, Foreign Trade Act, and the Constitution of India. The petitioner seeks relief through a writ of mandamus or any other appropriate order to strike down the said rule. Additionally, the petitioner requests a declaration that their right to import raw materials is not affected by the said Notification and seeks directions for Customs officers to assess Bills of Entry for import and clearance of raw materials.

The petitioner, engaged in manufacturing plastic commodities in KASEZ, has imported 05 consignments of raw materials in accordance with the Letter of Approval issued by the Development Commissioner. These consignments are currently at Mundra Port, incurring various charges. The petitioner seeks permission to shift the containers to their Industrial Unit, with an undertaking not to utilize the goods until final adjudication of the litigation. The court directs the Deputy Commissioners of Customs to permit the shifting of the containers to the Industrial Unit, ensuring the containers remain intact and sealed by the Development Commissioner to prevent any unauthorized use.

A notice is issued to the respondents, returnable on a specified date, with a direction for the respondents to file a reply promptly. The court emphasizes the urgency of the matter due to the nature of the litigation and permits direct service. The interim relief granted is aimed at preventing further demurrages on the containers at Mundra Port, allowing the petitioner to shift the containers while ensuring the integrity of the goods until the final resolution of the case.