2018 (1) TMI 1740 - HC - Customs

Seeking for release of the cargo provisionally without levy of ADD - certificate of origin - HELD THAT - The certificate, which is sought to be relied on by the respondent/Department to state that the port of shipment is a country falling within the European Union, is the certificate dated 07.09.2017. However, even in the said certificate, the country of origin is Bosnia and Herzegovina. Thus, it is clear that the petitioner has made out a prima facie case for grant of order for provisional release of the cargo and also to protect the interest of the revenue, as the respondents are yet to issue show cause notice and take up the case for adjudication. This writ petition is disposed of by directing the respondent/Department to release the cargo, which is covered under the Bill of Entry No. 3368891 dated 26.09.2017, subject to the condition that the petitioner furnishes a bond for the full value and furnishes a bank guarantee to the tune of 25% of the ADD, which is proposed to be levied on the petitioner. Petition disposed off.

Summary

Issues:
1. Dispute over Anti-Dumping Duty (ADD) on imported goods from Bosnia shipped through Croatia.
2. Validity of Certificate of Origin and country of export.
3. Provisional release of detained cargo pending adjudication.

Analysis:
1. The petitioner, a trader in Soda Ash importing from Bosnia, faced detention of a consignment by the respondent Department due to the requirement of paying Anti-Dumping Duty (ADD) based on the belief that the goods originated from Croatia, an EU country. The petitioner contended that the goods were of Bosnia and Herzegovina origin, shipped through Croatia due to port limitations, thus disputing the ADD imposition.

2. The Assistant Commissioner of Customs (Legal-Sea) highlighted discrepancies in the Certificate of Origin, indicating issuance from Romania, an EU country. However, the Certificate dated 28.08.2017 clearly stated Bosnia and Herzegovina as the origin, contrary to the respondent's claim based on a later certificate dated 07.09.2017. The Court acknowledged the petitioner's prima facie case for provisional release, emphasizing the need to protect revenue pending adjudication.

3. In the judgment, the Court directed the respondent Department to release the detained cargo under specified conditions. The petitioner was required to furnish a bond for the full value and a bank guarantee for 25% of the proposed ADD. Upon compliance, the goods were to be released immediately. The Department retained the right to issue a show cause notice and proceed with adjudication as per legal procedures, without imposing any costs on the petitioner.