2021 (2) TMI 923 - HC - Customs

Seizure of goods - Mis-classification of imported goods - import and trading of Food Items especially Masalas of different flavours - it was opined by the Officers of Customs that the goods were mis declared in terms of classification in so far as the same were mis classified under CTH 09109100, instead the same shall fall under Customs Tariff Heading 21039040 attracting IGST at the rate of 12% instead of 5%, thus leading to shortfall of Customs Duty - HELD THAT - The petitioner has made a details representation dated 25.01.2021 (Annexure P-10) and reminder dated 01.02.2021 (Annexure P-11), but no action has been taken thereon till date. Notice of motion. This petition is disposed of by giving direction to respondent No.3-Additional Commissioner of Customs to look into the representation/ reminder dated 25.01.2021/01.02.2021 (Annexures P-10 and P-11) and after affording an opportunity of hearing to the petitioner, pass a speaking order thereon in accordance with law.

Summary

Issues: Petition seeking quashing of Seizure Memo dated 12.01.2021 issued against provisions of Customs Act, 1962.

Analysis:
The petitioner, engaged in importing and trading food items, especially masalas, imported goods falling under chapter heading 09109100 of Custom Tariff Act, 1975. The goods attracted Customs Duty at approximately 30% and IGST at 10%. The petitioner, a certified importer, submitted necessary documents for opening the Bill of Entry under Section 46 of the Customs Act, 1962, which was granted on 07.01.2021. The Bill of Entry was filed under the Second Check System, and customs duty amounting to ?18,08,554/- was paid. However, during examination, customs officers opined that the goods were misclassified under CTH 09109100 instead of Customs Tariff Heading 21039040, leading to a shortfall of Customs Duty of ?4,09,516.79/-, resulting in the seizure of goods.

The petitioner cited circulars and procedures prescribed for goods clearance, as directed by the Court in a previous case. Despite submitting detailed representations and reminders, no action was taken by the authorities. The Court disposed of the petition by directing the Additional Commissioner of Customs to review the representations and reminders dated 25.01.2021 and 01.02.2021, and pass a speaking order after providing an opportunity of hearing to the petitioner within one week from the receipt of the order's certified copy.