2022 (1) TMI 857 - HC - Customs

Valuation of imported goods - import of 52000 Kilograms of Black Pepper from Sri Lanka - prohibited goods - alleged overvaluation of said consignment at ₹ 505/- per Kilogram to get over notifications which prohibit import of black pepper valued at below ₹ 500/- per Kilogram - Notification No.21/2015-20 dated 25.07.2018 - Whether there is circumnavigation of notification qua this import is the subject matter of adjudication? - HELD THAT - Incidentally the import is by a Vessel by water from Sri Lanka. Show cause notice has been issued, adjudication is under way. The office of the first respondent has made it clear that samples have been drawn investigation is under way and the consignment may not be required any more for further investigation. The release is also recommended by the fourth respondent-Customs Department. Moreover an earlier consignment imported by the same importer in March 2021 i.e., 37000 Kilograms of black pepper valued a little over INR 1.86 Crores was released. In this case also the purchase of black pepper was at ₹ 505/- per Kilogram and the consignment was detained on allegations of overvaluation to get over notifications banning import of black pepper valued at less than ₹ 500/- per Kilogram. There is no opinion or view on the adjudication that is under way. The question as to the actual value of the imported consignments is to be adjudicated separately as per Customs Act, 1962 and the instant order has been made perambulating within the perimeter of Section 110A of Customs Act, 1962 - Captioned writ petition is disposed of.

Summary

Issues Involved:
1. Alleged overvaluation of black pepper consignment.
2. Legality of seizure and detention of consignment.
3. Request for provisional release of consignment.
4. Waiver of demurrage and container detention charges.

Detailed Analysis:

1. Alleged Overvaluation of Black Pepper Consignment:
The petitioner imported 52,000 kilograms of black pepper from Sri Lanka, valued at over INR 2.62 Crores, and filed two Bills of Entry for home consumption. The consignment was seized by the first respondent on the grounds of alleged overvaluation at ?505/- per kilogram to circumvent notifications prohibiting import below ?500/- per kilogram. The petitioner argued that a certificate dated 08.06.2021 recommended the release of the consignment, and a communication dated 16.06.2021 from the first respondent indicated that samples had been drawn and the consignment was not required for further investigation.

2. Legality of Seizure and Detention of Consignment:
The consignment's seizure was based on the allegation of overvaluation to bypass the notification prohibiting imports below ?500/- per kilogram. The petitioner referenced a similar case (W.P.No.12454 of 2021) where the court ordered the release of a consignment under similar circumstances. The court noted that the consignment in question was perishable and its value was degenerating daily. The Revenue counsel acknowledged the ongoing adjudication regarding the alleged overvaluation but noted that a similar consignment imported in March 2021 by the same importer was released despite similar allegations.

3. Request for Provisional Release of Consignment:
The petitioner sought provisional release of the consignment under Section 110A of the Customs Act, 1962. The court referred to a previous order (W.P.No.12454 of 2021) where the Deputy Commissioner was directed to quantify the duty and bond amounts and release the goods upon payment. The court found the factual matrix of the current case similar to the previous one and decided to follow the same approach. The third respondent was directed to quantify the duty and bond amounts, communicate them to the petitioner, and release the goods within a week of payment.

4. Waiver of Demurrage and Container Detention Charges:
The petitioner also sought a waiver of demurrage and container detention charges. The court left this issue open for the petitioner to pursue before the authorities in light of applicable rules and regulations, as articulated in paragraph 15 of the earlier order in W.P.No.12454 of 2021.

Conclusion:
The court ordered the provisional release of the consignment, directing the third respondent to quantify the duty and bond amounts and release the goods upon payment. The ongoing investigation and adjudication regarding the alleged overvaluation were to proceed independently. The issue of waiver of demurrage charges was left open for further pursuit by the petitioner. The writ petition was disposed of accordingly, with no costs awarded.