2022 (8) TMI 1206 - HC - Customs

Seeking release of seized goods - Betel Nut product known as Supari (unflavoured Supari) imported from the Republic of the Union of Myanmar - Issuance of Waiver Certificate for Detention and Demurrage Charges under Regulation of Handling of Cargo in Customs Area Regulations, 2009 - HELD THAT - In a similar case, this Court in M/S. GENUINE SPICES VERSUS THE COMMISSIONER OF CUSTOMS, THE JOINT/ADDITIONAL COMMISSIONER OF CUSTOMS (IMPORTS) , THE DEPUTY DIRECTOR, TUTICORIN 2022 (8) TMI 1148 - MADRAS HIGH COURT has passed an order directing the Commissioner of Customs (Imports) to release the cargo provisionally subject to furnishing of PD bond for full value of the goods and furnishing of bank guarantee at 50% of the differential duty considering Duty Free Tariff Preference Scheme for Least Developed Countries (LDC) benefit. The Writ Petition is disposed of permitting the petitioner to make an application for provisional release under Section 110-A of Customs Act and on filing such application, the same shall be disposed of by the Adjudicating Authority, after hearing the petitioner and simultaneous with a prima facie determination of the classification of the commodity, within a period of two (2) weeks from the date of receipt of the application.

Summary

Issues:
1. Release of imported goods
2. Issuance of Waiver Certificate for Detention and Demurrage Charges
3. Detention of goods under Section 110 of the Customs Act
4. Provisional release under Section 110-A of the Customs Act

Release of Imported Goods:
The petitioner filed a writ petition seeking a mandamus to direct the respondents to release 27.02 MTs. of Betel Nut product imported from Myanmar. The petitioner had submitted all necessary documents, including Commercial Invoice, Packing List, and Certificates of Origin, to the Customs for clearance. Despite the goods being examined and confirmed fit for human consumption by FSSAI, the goods were detained by the Customs without valid grounds. The petitioner argued that similar goods were released in other ports, causing financial loss due to demurrage charges.

Issuance of Waiver Certificate for Detention and Demurrage Charges:
The petitioner requested the respondents to issue a Waiver Certificate for Detention and Demurrage Charges under the Handling of Cargo in Customs Area Regulations, 2009. The petitioner highlighted that the unnecessary detention of goods without justification was leading to financial losses and requested the court to direct the respondents to release the goods and issue the waiver certificate.

Detention of Goods under Section 110 of the Customs Act:
The petitioner contended that the goods, declared under Customs Tariff Heading 2106 and Sub-Heading 21069030, were improperly detained under Section 110 of the Customs Act. Despite the goods being confirmed fit for consumption by FSSAI, the continued detention was deemed unjustified. The petitioner argued for the release of goods based on the confirmation of their quality and origin.

Provisional Release under Section 110-A of the Customs Act:
Citing a previous judgment in a similar case, the court directed the Commissioner of Customs to release the cargo provisionally upon the petitioner's application under Section 110-A. The provisional release was subject to the furnishing of a PD bond for the full value of goods and a bank guarantee for 50% of the differential duty. The court emphasized the need for timely assessment and adjudication processes to be completed within a specified period, ensuring the petitioner's rights were upheld.

In conclusion, the court disposed of the writ petition, permitting the petitioner to apply for provisional release under Section 110-A, directing the release of the imported goods subject to specified conditions, and emphasizing the timely completion of assessment and adjudication processes.