2022 (8) TMI 937 - HC - Customs

Provisional release of the consignments for the purpose of re-export - permission of re-export without charging any demurrage/detention charges - import of consignment of betel nut - HELD THAT - The petitioners therein to file applications seeking provisional release under Section 110A, if they were so inclined and directed the respondent to consider and dispose the applications in accordance with law within a time frame that had been fixed. Simultaneous therewith, it is also directed that the respondents would engage in determination of the adjudication of the commodity in order that the nature of the consignment/goods imported would be determined to facilitate a decision being taken in the context of provisional release. The same order is passed in the present case as well. In fine, a direction is issued to R4 to dispose the application of the petitioner dated 25.06.2022 seeking provisional release for the purpose of reexport, after hearing the petitioner and simultaneous therewith, R4 shall also engage, with the assessees and the officials of the Directorate of Revenue Intelligence in the determination of classification of the goods, within a period of three (3) weeks from date of receipt of a copy of this order. Petition disposed off.

Summary

Issues involved:
1. Mandamus for provisional release of imported consignments for re-export without demurrage charges.
2. Classification of imported goods under Customs Act, 1962.
3. Discretionary power to fine or confiscate prohibited goods.
4. Prompt exercise of discretion for perishable goods.
5. Applications for provisional release and classification determination.
6. Compliance with Circular No.22/2004-Cus. for release of disputed consignments.

Detailed Analysis:
1. The petitioner, an importer of betel nut consignments, sought a mandamus for the provisional release of goods for re-export without demurrage charges. The court noted a previous order directing petitioners to seek provisional release under Section 110A of the Customs Act. The current representation by the petitioner was for provisional release under Section 110A for re-export, distinguishing it from previous cases considered by the court.
2. The issue revolved around the classification of goods under the Customs Tariff, with the revenue contending the consignments fell under Chapter 8 (Areca nuts) while petitioners argued for Chapter 21 (Food preparations). The court emphasized the need for the authority to determine the correct classification to decide on provisional release.
3. Regarding discretionary power to fine or confiscate prohibited goods, the court highlighted Section 125's provision for discretionary imposition of fines in confiscation cases. It stressed the importance of prompt exercise of discretion, especially for perishable goods like the betel nut consignments.
4. The judgment emphasized the need for authorities to promptly exercise discretion, especially for perishable goods, considering the consignments had been in the Customs Station since February 2022 and were at risk due to exposure to weather conditions.
5. The court allowed petitioners to update their representations based on recent events and directed a prima facie determination of the goods' classification within a specified timeframe. It referenced previous orders granting provisional release based on retesting and compliance with natural justice principles.
6. In line with Circular No.22/2004-Cus., the court directed the disposal of the petitioner's application for provisional release and engagement with relevant authorities for classification determination within a set timeframe, ensuring compliance with circular instructions for the release of disputed consignments to prevent congestion at ports and warehouses.