2023 (8) TMI 781 - HC - Customs

Examination process of the samples by the laboratory - HELD THAT - The consignment of the petitioner has got stuck on issues concerning the laboratory clearance. If this was the fate of the goods to be imported, the Petitioner would have certainly had a second thought to import such cargo. It would be not out of place to observe that a bonafide businessman is not interested in litigation, and more particularly, on such issues. The Mumbai Port Authority has addressed a letter dated 11th May 2023 to the Petitioner setting out the storage/demurrage charges. As seen from the said letter, the Petitioner is required to pay the balance amount of Rs,3,63,75,668/- upto 7th June 2023 - as soyabean cargo is now the subject matter of clearance which is lying with the Mumbai Port Authority, and as there is no issue in regard to the clearance of the Pigeon peas, such goods need to be permitted to be cleared. The Pigeon peas be permitted to be cleared by the Mumbai Port Trust for which the petitioner shall pay storage / demurrage charges proportionate to the quantity of the Pigeon peas being cleared. The petitioner shall accordingly make payment of such charges to the Mumbai Port Trust, which shall be without prejudice to the rights and contentions of the parties. Stand over to 3rd July 2023. High on Board.

Summary

Issues Involved:
The issues involved in the judgment are delay in laboratory report submission affecting trade, need for expedited processing of samples, impact of goods clearance issues on importers, suggestion for a centralized agency for laboratory clearances, and clearance of specific goods despite other issues.

Issue 1: Delay in Laboratory Report Submission
The court expressed concern over the delay in obtaining laboratory reports necessary for goods clearance, emphasizing the need for expeditious processing of samples. The concerned head of the laboratory was directed to provide an estimated timeline for the process completion and reasons for any delays. A Competent Officer of the Respondent was required to submit an affidavit explaining the current stage of processing at the laboratory and the additional time needed.

Issue 2: Impact on Trade and Importers
The court noted the adverse effects on trade due to goods not being cleared at the port, especially when dealing with perishable items like soybeans. The potential loss of consumable goods and the need for destruction were highlighted, indicating a hindrance to effective trade practices. The court stressed the importance of expeditiously obtaining laboratory reports to prevent such trade disruptions.

Issue 3: Suggestion for Centralized Agency
Recognizing the recurring nature of such issues affecting trade, the court suggested the Government of India consider establishing a centralized agency or designating specific laboratories for different types of goods requiring testing at ports. This proposal aimed to streamline the process, ensure timely laboratory reports, and support effective trade practices by avoiding uncertainties that impact importers' business interests.

Issue 4: Clearance of Specific Goods
Despite the overall clearance issues, the court allowed for the clearance of Pigeon peas without entanglement in the soybean-related proceedings. The Mumbai Port Authority was directed to permit the clearance of Pigeon peas, with the petitioner required to pay storage and demurrage charges proportional to the quantity being cleared. This decision aimed to facilitate the clearance of specific goods while addressing outstanding payment obligations to the port authority.

Conclusion:
The judgment highlighted the importance of timely laboratory reports for goods clearance, the impact on trade due to delays, and proposed solutions to streamline the process. Additionally, specific directions were given for the clearance of Pigeon peas, emphasizing the need to address outstanding charges while allowing for the goods' clearance.