2020 (12) TMI 834 - HC - Customs

Warehousing of the said imported goods - imported yellow peas - direction to respondent to take on record the bills of entry for warehousing of the cargo covered by 11 bills of lading of imported yellow peas and to pass orders thereon for warehousing of the said imported goods - Grievance of the petitioners is that their attempt to electronically present the bills of entry was not accepted by the customs automated system on account of suspension of importer exporter code. HELD THAT - Section 48 lays down the procedure in case of goods not cleared, warehoused or transshipped within 30 days after unloading. It says that if any goods brought into India from a place outside India are not cleared for home consumption or warehoused or transshipped within thirty days from the date of unloading at a customs station or within such further time as the proper officer may allow or if the title to any imported goods is reliquished, such goods may after notice to the importer and with the permission of the proper officer be sold by the person having custody thereof - Under section 48, if the imported goods are not cleared or warehoused etc. within the stipulated period which may be extended, then the person having the custody of such goods has the discretion to sell the goods. A decision has to be taken by the authority under section 46 of the Customs Act. Without such decision being taken, it would not be just and proper to allow the custodian to sell the goods - respondent Nos.2 and 3 are directed to take a decision on the prayer of the petitioners for warehousing of the consignments in terms of section 46(1) of the Customs Act after granting due opportunity of hearing to the petitioners. Let such decision be taken within a period of 7 days from the date of receipt of a copy of this order. Petition disposed off.

Summary

Issues:
1. Direction sought for taking on record bills of entry for warehousing of imported goods.
2. Allegation of withholding bills of entry and auctioning imported goods.
3. Suspension of importer and exporter code affecting electronic presentation of bills of entry.
4. Interpretation of Customs Act provisions regarding entry of goods and procedure for goods not cleared within stipulated time.

Analysis:
1. The judgment involves two writ petitions seeking directions for taking on record bills of entry for warehousing of imported goods. The petitioners allege that respondent authorities were withholding the bills of entry and attempting to auction the imported goods, leading to the filing of the petitions.

2. The petitioners faced challenges in electronically presenting the bills of entry due to the suspension of their importer and exporter codes. Despite requesting manual filing, there was allegedly no response from the authorities. Respondents holding custody of the goods issued auction notices, prompting the petitioners to seek judicial intervention.

3. The court examined provisions of the Customs Act, particularly sections 46 and 48. Section 46 mandates electronic presentation of bills of entry for imported goods, with provision for alternative methods in certain cases. Section 48 outlines the procedure for goods not cleared within the specified time frame, allowing for sale of such goods by the custodian after due notice.

4. The judgment emphasized the importance of a decision under section 46 before allowing the sale of goods under section 48. The court directed the respondents to decide on the warehousing prayer within 7 days, ensuring a speaking order communicated to the petitioners. Until a decision is made and communicated, the authorities were restrained from selling the goods.

5. The judgment concluded by disposing of both writ petitions with directions for compliance within the specified timeline. The court maintained that all contentions remained open, and no costs were awarded. The order was to be digitally signed and communicated to all concerned parties for further action.