2023 (11) TMI 74 - HC - Customs

Confiscation of imported goods - fresh apples - minimum import price - CIF value is below Rs. 50/- per kg - prohibition on import of the goods or not - HELD THAT - In similar circumstances in M/s.Delhi Photocopiers v. Commissioner of Customs, Chennai and others 2021 (8) TMI 1244 - SUPREME COURT , the Hon'ble Supreme Court has ordered for provisional release of the goods, on terms, and complete the process of adjudication within a fixed time frame. Having considered the fact that the stay of operation of the notification is in force till date and the same is yet to attain finality and also taking note of the nature of the subject goods viz., fresh apples, which are perishable in nature and are meant for human consumption and also in the light of the order of the supreme court as referred to above, this court finds it appropriate to order release of the goods to the respondent, however, subject to the condition that the respondent shall furnish bank guarantee to the value of differential duty to be determined by the authority, in order to safeguard the interest of the Department. The appellant is directed to release the subject goods on furnishing of bank guarantee to the tune of Rs. 2,25,000/- towards differential duty, by the respondent. It is made clear that this interim arrangement would be made only to safeguard the interest of both parties; and the bank guarantee to be furnished by the respondent is kept alive, till the decision is arrived at with regard to validity of the notification no.5/2023 dated 08.05.2023. Appeal disposed off.

Summary

Issues Involved:
1. Validity of Notification No.5/2023 dated 08.05.2023.
2. Confiscation of imported fresh apples under section 111(d) of the Customs Act, 1962.
3. Interim relief and principles of natural justice.

Summary:

1. Validity of Notification No.5/2023 dated 08.05.2023:
The respondent imported "fresh apples" from New Zealand, which were classified into two categories based on CIF price, with some being below Rs. 50/- per kg. According to DGFT Notification No.5/2023, apples with CIF value below Rs. 50/- per kg are "prohibited" from import. The Kerala High Court and Madras High Court had both granted interim stays against this notification, impacting its enforceability.

2. Confiscation of Imported Fresh Apples:
The appellant authority confiscated the apples with CIF value below Rs. 50/- per kg under section 111(d) of the Customs Act, 1962, while allowing the clearance of apples with CIF value above Rs. 50/- per kg. The respondent challenged this confiscation in W.P.No. 24343 of 2023, seeking the release of the goods and a waiver of demurrage and container detention charges.

3. Interim Relief and Principles of Natural Justice:
The learned Judge granted an interim direction to release the goods, citing the perishable nature of the apples and the existing stays on the notification by the Kerala High Court and Madras High Court. The appellant contended that the interim order was issued without notice and violated principles of natural justice. The court noted that the stay orders on the notification had pan-India effect and that the confiscation order lacked legal sanctity due to these stays.

Final Ruling:
The court ordered the release of the apples upon the respondent furnishing a bank guarantee for the differential duty amount of Rs. 2,25,000/-. This interim arrangement was made to safeguard the interests of both parties, pending the final decision on the validity of Notification No.5/2023. The writ appeal was disposed of with these directions, and the connected miscellaneous petition was closed.