2020 (12) TMI 966 - HC - Customs

Unconditional release of the detained silk fabric and carpets covered under various shipping bills - export consignments of the petitioners kept on hold - prohibited goods or not - HELD THAT - Clearance of export goods are dealt with in sections 50 and 51 of the Customs Act, 1962. Once the exportable goods are entered in the customs automated system by generating shipping bill in terms of section 50, the proper officer is required to clear the goods under section 51. As per sub-section (1) of section 51, where the proper officer is satisfied that any goods entered for export are not prohibited goods and the exporter has paid the duty if any assessed thereon and any charges payable under the Customs Act, 1962, the proper officer may make an order permitting clearance and loading of the goods for exportation - If there is no seizure of the exportable goods of the petitioners, there cannot be any good reason for withholding of the exportable goods, the same admittedly being not prohibited goods. Stand over to 12.01.2021.

Summary

Issues:
Export consignments held up by officials of respondent No.2, seizure of currency and goods, representation seeking release of detained goods, justification for holding up export consignments, clearance of export goods under Customs Act, 1962.

Analysis:
The judgment involves three writ petitions concerning manufacturers and exporters of silk fabrics and carpets whose export consignments were held up by officials of respondent No.2. The petitioners sought the release of their goods, emphasizing that the goods intended for export were not prohibited. A search conducted on their premises led to the seizure of currency and other items. The petitioners submitted a representation seeking the unconditional release of their detained goods, which was not responded to, prompting them to file the writ petitions.

The petitioners' counsel referred to a circular by the Central Board of Excise and Customs stating that export consignments should not be held up for extended periods unless the goods are prohibited under the Customs Act, 1962. On the other hand, respondent No.2's counsel requested time to file an affidavit, indicating that the papers were received recently. The judgment highlighted the provisions of sections 50 and 51 of the Customs Act, 1962, governing the clearance of export goods. It emphasized that if the goods are not prohibited and all duties and charges have been paid, the proper officer should permit clearance and loading for exportation.

The court ordered respondent No.3 to decide promptly, within 7 days, whether to allow the export of the petitioners' goods covered by the shipping bills, potentially after a personal hearing. The decision taken was to be communicated to the petitioners, and respondent No.2 was directed to file an affidavit justifying the withholding of export consignments without a seizure order. The matter was adjourned to a later date for further proceedings, with the order to be digitally signed for action by concerned parties upon receipt.