2023 (11) TMI 921 - HC - Customs

Seeking issuance of detention certificate for waiver of demurrage and container detention charges in terms of Regulation 6 (1) of Handling of Cargo in Customs Areas Regulations, 2009 - import of apples from Turkey - HELD THAT - In terms of the notification No.5 of 2023 dated 08.05.2023 issued by the respondent Department, no importer can import the goods at CIF value less than or equal to Rs. 50 per kg. However, in the present case the petitioner has imported apples at the rate ranging from Rs. 32 to 35. Therefore, according to the respondent Department, it is not in accordance with law and since the CIF value mentioned in the Bills of Entry is not in terms of the notification No.5 of 2023, the Bills of Entry are kept pending, without ordering clearance from the Port. Since the above said notification has been challenged before various High Courts including this Court vide W.P.No.24343 of 2023, wherein this Court has granted interim stay of the notification No.5 of 2023 dated 08.05.2023 and directed the respondent to assess and release the imported goods. Against the said order, the 2nd respondent has preferred an appeal in W.A.No.2626 of 2023 dated 18.10.2023 2023 (11) TMI 74 - MADRAS HIGH COURT wherein the Division Bench of this Court has directed to release the goods subject to execution of Bank Guarantee for the differential rate of duty, i.e. the price determined by virtue of notification i.e. Rs. 50 per kg. minus the price shown in the Bills of Entry (Rs.50 Rs. 32 to Rs. 35). This Court directs the respondents to release the goods within a week's time, upon execution of Bank Guarantee by the petitioner for the differential duty, on the same line as held by the Hon'ble Division Bench of this Court - In the event, if the notification No.5 of 2023 dated 08.05.2023 is upheld by the Hon'ble Division Bench, certainly the respondents are entitled to encash the Bank guarantee executed by the petitioner. The respondents shall also consider waiver of the charges, in the event of request, if any, being made by the petitioner, in accordance with law. Petition disposed off.

Summary

Issues involved:
The issues involved in the judgment are the detention of imported goods by the respondents due to alleged non-compliance with CIF value regulations, the challenge to notification No.5 of 2023 regarding import value restrictions, and the direction for release of goods subject to execution of a Bank Guarantee for differential duty rates.

Detention of Imported Goods:
The petitioner filed a writ petition seeking a mandamus to direct the respondents to assess and release imported goods, specifically apples from Turkey, covered under Bills of Entry pending clearance. The detention of goods was alleged to be contrary to the citizen's charter and the law laid down by the Court.

Challenge to Notification No.5 of 2023:
The respondent Department cited Notification No.5 of 2023, which prohibits import of goods at CIF value less than or equal to Rs. 50 per kg. The petitioner had imported apples at a lower rate, leading to the detention of the goods. The Division Bench of the Court had previously directed release of goods subject to execution of a Bank Guarantee for the differential duty amount.

Release of Goods and Bank Guarantee:
The Division Bench had directed the release of goods upon execution of a Bank Guarantee for the differential duty amount. The Court upheld this direction, ordering the respondents to release the goods within a week upon execution of the Bank Guarantee by the petitioner. The outcome was subject to the decision in Writ Appeal No.2626 of 2023.

Conclusion:
The Court disposed of the writ petition, directing the release of goods upon execution of the Bank Guarantee for the differential duty. If the challenged notification is upheld, the respondents are entitled to encash the Bank Guarantee. The Court also mentioned considering waiver of charges upon request by the petitioner in accordance with the law.