2024 (1) TMI 904 - HC - Customs

Seeking release of Gold Dore Bars of alleged Tanzanian origin - prohibited goods or not - HELD THAT - Section 11(1) of the Customs Act empowers the Central Government to issue a notification in the Official Gazette to prohibit goods either absolutely or subject to specified conditions for any of the purposes set out in sub-section (2) of Section 11. In terms of Section 11, notifications were issued. The notifications issued under Section 11 do not prohibit the import of gold dore - Whether sub-section (3) of Section 3 would apply only to prohibited goods under sub-section (2) or also to restricted goods warrants consideration in an appropriate case. Because there is no notification under any statute classifying the goods as prohibited, at a minimum, it may be concluded that there is an arguable case to contend that these goods are not prohibited goods. Since the petitioner has at least an arguable case to contend that the goods are not prohibited goods, the next issue is whether and, if so, on what conditions, the petitioner may seek provisional release under Section 110A of the Customs Act. The petitioner relied upon the exemption notification and contended that duty exemption should be extended to the petitioner. In the counter affidavit, the respondents set out reasons as to why they dispute the authenticity of documents such as the packing list and the Assay Certificate provided by the petitioner. The genuineness and validity of these documents are required to be examined by the respondents in course of proceedings against the petitioner. The petitioner shall remit 100% of the duty payable on the value of the goods imported under each bill of entry. Such payment may be made under protest - petitioner shall submit a bond for a sum equal to the total value of the goods under each bill of entry - subject to fulfillment of the above conditions, goods may be provisionally released to the petitioner within a period of one week from the date of compliance with the above conditions. Petition disposed off.

Summary

Issues Involved:
The petitioner seeks release of Gold Dore Bars imported under specific bills of entry.
1. Classification of Goods as Prohibited or Restricted:
The main issue is whether the imported goods are prohibited under the Customs Act and related notifications.
- The petitioner claims compliance with import conditions but goods were seized.
- Respondents argue the goods are prohibited under relevant statutes and notifications.
- Reference made to a Delhi High Court judgment regarding treatment of goods as prohibited if import conditions are violated.
- Analysis of relevant provisions under the Customs Act and Foreign Trade (Development and Regulation) Act.
- Lack of specific notification classifying the goods as prohibited raises doubt on their classification.

2. Provisional Release of Goods under Section 110A of the Customs Act:
The second issue concerns the petitioner's right to seek provisional release of the goods.
- Petitioner asserts entitlement to provisional release under Section 110A.
- Dispute arises over duty exemption claimed by the petitioner and authenticity of supporting documents.
- Court refrains from expressing opinion on document validity pending further examination by respondents.
- Discussion on the discretion of the adjudicating authority and the Court in granting provisional release.
- Decision to grant provisional release subject to specific terms and conditions to protect revenue interest.

Conclusion:
The Court directs provisional release of the goods under specified conditions, including full duty payment and submission of a bond. The genuineness of documents supporting duty exemption claim is to be determined by the respondents. The judgment balances revenue interest with the petitioner's right to provisional release, without influencing ongoing proceedings against the petitioner. The writ petitions are disposed of without costs, and connected Miscellaneous Petitions are closed.