2021 (9) TMI 1279 - HC - Customs

Permission to file the self-assessed Bill of Entry for imported Procleix Ultrio Elite Assay Kit as well as for future consignments - mandatory speaking order under Section 17(5) of the Customs Act, 1962 - direction to pass provisional assessment order under Section 18 of the Act during the pendency of reassessment proceedings - seeking to allow future imports to be cleared on the basis of provisional assessment on the basis of reasonable security without insistence of deposition of 100% disputed customs duty demand - violation of principles of natural justice - HELD THAT - The provisional release of the goods can be challenged by the petitioner in accordance with law before the appropriate forum. However, looking to the facts of the case, especially the fact that no order has been passed under Section 17(5) of the Customs Act, 1962, the concerned respondent authority is directed to pass a speaking order under Section 17(5) of the Customs Act, 1962 upon the Bill of entries which are mentioned hereinabove which have already been filed by the importer petitioner in the month of July, 2021. The petitioner shall cooperate during the hearing with the respondents for passing an order under Section 17(5) of the Customs Act, 1962. This order shall be passed within a period of two weeks from today. The Officers of the respondents are also present on video conference hearing which has taken place today. Petition disposed off.

Issues:
1. Petitioner seeking writ of mandamus for allowing filing of self-assessed Bill of Entry.
2. Petitioner requesting writ for reasoned reassessment order under Customs Act.
3. Petitioner asking for provisional assessment order during reassessment proceedings.
4. Petitioner seeking clearance of future imports based on provisional assessment.
5. Lack of order under Section 17(5) of the Customs Act, 1962.

Analysis:

1. Writ of Mandamus for Bill of Entry:
The petitioner sought a writ of mandamus to allow filing of the self-assessed Bill of Entry for imported goods. The petitioner emphasized the need for a speaking order under Section 17(5) of the Customs Act, 1962, following principles of natural justice. The Court acknowledged the urgency due to the goods' relevance in the prevailing Covid-19 situation. The respondents were directed to pass a speaking order on the filed Bill of Entries within two weeks, ensuring cooperation from the petitioner during the process.

2. Reasoned Reassessment Order:
Additionally, the petitioner requested a writ for reasoned reassessment orders under Section 17(5) of the Act for specific Bill of Entries. The Court highlighted the duty of the respondent authorities to pass orders under the Customs Act, emphasizing the importance of following natural justice principles and providing a personal hearing to the petitioner. The Court directed the concerned authority to pass a speaking order on the mentioned Bill of Entries filed in July 2021 within the stipulated two-week period.

3. Provisional Assessment Order:
The petitioner also sought a provisional assessment order under Section 18 of the Act during the reassessment proceedings for imported goods. However, the Court focused on the lack of an order under Section 17(5) of the Customs Act, 1962, directing the respondent authority to prioritize and pass a speaking order on the filed Bill of Entries. The Court's decision aimed to address the immediate need for clarity and resolution regarding the import process.

4. Clearance of Future Imports:
Furthermore, the petitioner requested clearance of future imports based on provisional assessment without the insistence of full customs duty payment until the final demand crystallization under the law. While this aspect was not explicitly addressed in the judgment, the Court's emphasis on passing speaking orders under Section 17(5) indicated a procedural priority to be addressed before considering clearance procedures for future imports.

5. Lack of Order under Section 17(5):
The judgment highlighted the absence of an order under Section 17(5) of the Customs Act, 1962, as a critical issue. Despite a detailed speaking order for provisional release of goods being passed by the respondent authorities, the Court directed the concerned authority to pass a speaking order specifically under Section 17(5) for the filed Bill of Entries. This directive aimed to ensure compliance with statutory requirements and procedural fairness in the import process.

In conclusion, the judgment addressed the petitioner's requests for writs related to Bill of Entry filing, reassessment orders, and provisional assessment, emphasizing the necessity of complying with statutory provisions and principles of natural justice in customs proceedings. The Court's directive for a speaking order under Section 17(5) within a specified timeframe reflected a balanced approach to resolving the immediate concerns raised by the petitioner while upholding legal standards and procedural requirements in customs matters.

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