2021 (1) TMI 69 - HC - Customs

Maintainability of petition - seizure of goods - order has been passed u/s 110A and the petitioner is required to file an appeal u/s 129A of the Customs Act, 1962 - contention of the petitioner is that as his goods are deteriorating and he is paying demurrages rent, he does have a remedy of provisional release of goods on account of Circular dated 16-08-2017 - HELD THAT - This court has carefully gone through the Circular issued on the subject and Mr Prasana Prasad has also stated in Open Court that there is no statutory provisions which requires for a report from the Directorate or Revenue Intelligence. Mr Prasana Prasad was also not able to state out any statutory provision which provides for a report from Directorate of Revenue Intelligence. He has stated that its a Departmental Protocol - In the considered opinion of this court, in case there is no statutory provision for obtaining a report from Directorate of Revenue Intelligence, then there is no justification in not deciding the application submitted by the petitioner for provisional release of the goods. Otherwise also, the Directorate of Revenue Intelligence as informed by learned counsel for Directorate of Revenue Intelligence has already submitted a report to respondents No. 2 and 5. The respondents No. 2 and 5 are directed to decide the petitioner's application for provisional release of goods, within a period of ten days, from today, in accordance with law, on merits - Petition allowed - decided in favor of petitioner.

Summary

Issues:
Provisional release of seized imported goods under Section 110A of the Customs Act, 1962 - Interpretation of Circular dated 16-08-2017 - Requirement of obtaining a report from Directorate of Revenue Intelligence for provisional release of goods.

Analysis:
The petitioner imported 100% Polyester Knitted Fabrics and the goods were seized, leading to a writ petition being filed. The Union of India stated that an order was passed under Section 110A, requiring the petitioner to file an appeal under Section 129A of the Customs Act, 1962. The petitioner sought provisional release of goods citing a Circular dated 16-08-2017, which outlines conditions for provisional release. The petitioner argued that due to goods deteriorating and incurring demurrages rent, provisional release should be granted. The respondents contended that a report from Directorate of Revenue Intelligence was necessary before deciding on provisional release.

The court examined the Circular and noted that no statutory provision mandated a report from the Directorate of Revenue Intelligence for provisional release. The court emphasized that if no statutory provision required such a report, there was no justification for delaying the decision on the application for provisional release. The Directorate of Revenue Intelligence had already submitted a report to the concerned respondents. Consequently, the court directed the respondents to decide on the petitioner's application for provisional release within ten days, based on merit and in accordance with the law, emphasizing the need for a speaking order uninfluenced by the court's directive. The writ petition was allowed, along with another connected petition arising from the same dispute.

In conclusion, the judgment clarified the interpretation of the Circular regarding provisional release of seized goods under the Customs Act, emphasizing that the absence of a statutory requirement for a report from the Directorate of Revenue Intelligence should not hinder the decision-making process for provisional release. The court's directive for timely consideration of the petitioner's application underscores the importance of adherence to legal procedures and the need for unbiased decision-making in such matters.