2022 (7) TMI 707 - HC - Customs

Seeking release of goods - Betel Nuts/Supari of Myanmar Origin - Section 110 A of Customs Act - HELD THAT - The petitioner has made representations before the respondents, both dated 16.04.2022 that shall be disposed by R4 within a period of two (2) weeks from date of receipt of a copy of this order after hearing the petitioner. Writ petition disposed off.

Summary

Issues Involved:
Mandamus to release imported goods of Betel Nut Product known as Supari from Myanmar. Interpretation of Sections 110A and 125 of the Customs Act, 1962 regarding provisional release and fine in lieu of confiscation. Application of Circular No.22/2004-Cus. dated 03.03.2004 on delay in release of consignments due to classification disputes.

Analysis:

1. Mandamus for Release of Goods:
The petitioner sought a mandamus directing the release of imported Betel Nut Product known as Supari from Myanmar. The goods in question were 1014 Bags, 81.12 Mts., and 1690 Bags, 135.2 MTs., valued at USD 133230/- & USD 222800/- respectively. The issue revolved around the delay in releasing these goods, which were exposed to inclement weather and the vagaries of nature since February 2022.

2. Interpretation of Sections 110A and 125:
The judgment highlighted the provisions of Sections 110A and 125 of the Customs Act, 1962. It emphasized that in the case of prohibited goods, the discretion to impose a fine in lieu of confiscation lies with the officer concerned. However, for goods that are not prohibited, the officer "shall" offer the option to pay a fine. The court stressed the prompt exercise of discretion, especially for perishable goods like the commodity in question.

3. Application of Circular No.22/2004-Cus. dated 03.03.2004:
The judgment extended the direction given in a previous batch of Writ Petitions to the present matters. It referenced Circular No.22/2004-Cus., which emphasized that consignments involved in classification disputes should not be withheld unnecessarily. The circular recommended provisional clearance/assessment for disputed consignments to prevent congestion at ports and warehouses, with adequate security measures to safeguard revenue.

In conclusion, the judgment addressed the petitioner's plea for a mandamus to release the imported goods, interpreted the relevant sections of the Customs Act regarding provisional release and fine in lieu of confiscation, and applied Circular No.22/2004-Cus. to streamline the process of releasing consignments in classification disputes. The court's decision aimed to ensure timely action by the authorities, especially in cases involving perishable goods, while upholding the principles of natural justice and revenue protection.