2022 (5) TMI 549 - HC - Customs

Country from where the goods imported - Magnesium lump - whether the writ applicants imported the goods from UAE or the Turkey? - case of the Revenue is that the goods have travelled from Pakistan - HELD THAT - If the goods have travelled from Pakistan, then the levy of duty shall be at the rate of 200%. Whereas if the goods have travelled from UAE, then the levy of duty shall be at the rate of 5% - The Revenue is not able to make any headway so far as this inquiry is concerned. The goods are lying at the customs warehouse past almost more than seven months.The possibility of passing an interim order releasing the goods subject to certain terms and conditions, is explored. However, the writ applicants are not in a position to furnish any tangible security. All that has been offered is a bond. Post both the matters on 21st April 2022 on top of the Board.

Summary

Issues:
1. Determination of the origin of imported goods for the purpose of duty levy.
2. Delay in the inquiry process by the Revenue.
3. Consideration of releasing goods subject to conditions.

Analysis:
1. The judgment revolves around the dispute regarding the origin of the imported goods, specifically Magnesium lump, whether from UAE or Turkey, with the Revenue claiming they originated from Pakistan, impacting the duty levy significantly. The Court emphasizes the need for a conclusive determination of the goods' origin to ascertain the applicable duty rate, stressing the importance of timely resolution.

2. The Court expresses concern over the prolonged inquiry period, noting that the goods have been held at the customs warehouse for over seven months due to the Revenue's inability to progress in the investigation. The judges urge the Revenue to expedite the inquiry and present a report within fifteen days to avoid unnecessary delays and ensure a fair resolution for all parties involved.

3. Despite considering the possibility of releasing the goods on interim basis, the Court highlights the petitioner's inability to provide adequate security, offering only a bond. The judges urge the Revenue to swiftly conclude the inquiry, warning that if the investigation remains inconclusive by the next hearing date, the Court may contemplate releasing the goods under specified terms and conditions, emphasizing the need for a timely and efficient resolution process.

The judgment underscores the significance of determining the origin of imported goods promptly to facilitate the correct levy of duties, urging the Revenue to expedite the inquiry process to prevent undue delays and ensure a fair outcome for all parties involved.