2023 (7) TMI 75 - HC - Customs

Seeking release of goods for re-export - import of Dried Areca Nuts Split and Black Pepper for the purpose of re-export - petitioner contended that the goods are suffering retention and pilferage and which is causing huge losses to the Petitioner if the goods are not immediately released to be re-exported - HELD THAT - The Respondents cannot detain the goods endlessly and more particularly considering the nature of the goods which are perishable. It is observed that no reply was filed in the midst of dictating this order, Mr. Subir Kumar has removed from his brief, a reply affidavit of Shri. D. S. Garbyal, Commissioner of Customs dated 15th June 2023 and has tendered the same. Such practice of getting the affidavit affirmed and not being placed on record is unknown. This is not fair even to the deponent of the affidavit as although, the reply was affirmed on 15th June 2023, the same was not placed on record, when certainly the deponent i.e. the Commissioner of Customs who affirmed the affidavit on 15th June 2023 was made to believe that the reply is meant to be filed before the Court, and that too in compliance of the order dated 3rd May 2023. Insofar as the goods which are not subject matter of investigation and/or which are otherwise not the subject matter of the Bills of Entry as set out in paragraph 23 of the reply filed on behalf of the Respondents, the same cannot be kept detained. The Respondents need to take an appropriate decision in that regard as expeditiously as possible, intimating the Petitioner either the decision to release the said goods for the purpose of re-export or otherwise as may be permissible in law. Let such decision be taken within a period of three weeks from today, after hearing the petitioner. Petition disposed off.

Summary

Issues involved:
The judgment addresses the detention and release of imported goods for re-export, involving issues of seizure, investigation, and cooperation with customs authorities.

Details of the judgment:

1. Detention of Goods for Re-export:
The petitioner imported consignment of Dried Areca Nuts Split and Black Pepper for re-export, partly warehoused and partly taken to another location. The petitioner sought release for re-export, alleging retention and pilferage causing significant losses. The seizure memo listed specific bags of goods seized, leading to uncertainty regarding the detained goods' ownership. Despite repeated requests and lack of response from customs authorities, the petitioner filed a petition under Article 226 of the Constitution of India.

2. Court's Observations and Directions:
The High Court noted the perishable nature of the goods and criticized the delay in responding to the petition. The Respondents failed to file a reply despite a previous adjournment request. Subsequently, a reply affidavit was submitted, highlighting ongoing investigations related to specific Bills of Entry. The court emphasized the need for cooperation, directing the petitioner to approach the Deputy Commissioner of Customs and provide necessary details by a specified date.

3. Decision on Detained Goods:
The court directed the Respondents to make a prompt decision regarding the release of goods not under investigation or covered by specific Bills of Entry. A three-week timeline was set for this decision after hearing the petitioner. The judgment concluded by keeping all contentions open and disposing of the petition without costs.

4. Highlighted Issue by the Judge:
Separately, the judge highlighted the Respondents' duty to promptly address the release of goods not subject to investigation or specific Bills of Entry, emphasizing the need for expeditious decision-making and communication with the petitioner.

The judgment emphasized the importance of timely responses, cooperation with authorities, and the need for swift decisions regarding the release of detained goods for re-export.