2006 (5) TMI 98 - HC - Customs

Summary

Issues:
1. Provisional assessment of imported goods based on NIDB data.
2. Unfair treatment by respondent No. 2 in not permitting provisional clearance.
3. Disposal of the rule by the court.

Analysis:

Issue 1: Provisional assessment of imported goods based on NIDB data
The petitioner claimed to have purchased a consignment of car amplifiers and speakers from a trading company in Hong Kong. The Bill of Entry for clearance of goods was lodged, but the assessment was delayed. The Assistant Commissioner of Customs issued an order for exemption based on samples and market survey. The petitioner applied for permission to warehouse the goods pending assessment. The petitioner filed a writ petition seeking release of the consignment. The respondent No. 2 asked for a PD bond and bank guarantee for provisional assessment, leading to the petitioner filing the present writ petition.

Issue 2: Unfair treatment by respondent No. 2 in not permitting provisional clearance
The respondent No. 2, in their affidavits, mentioned undervaluation based on a report and asked for a substantial bond and bank guarantee. It was pointed out that similar goods had been cleared at other customs locations based on NIDB values post a specific date. The court found that the petitioner had not been treated fairly by respondent No. 2, as other customs authorities allowed provisional clearance based on NIDB data. The court deemed the actions of respondent No. 2 as unfair and unreasonable, especially considering the provisional nature of the assessment.

Issue 3: Disposal of the rule by the court
The court, after considering the arguments and pleadings, ordered that upon the petitioner furnishing a PD bond of a specified amount, respondent No. 2 should release the imported goods on a provisional basis by accepting the customs duty leviable as per NIDB data. The court found the respondent's actions unjustified and directed the release of goods based on NIDB data for provisional assessment. No costs were awarded in the judgment.

This detailed analysis of the judgment highlights the issues of provisional assessment, unfair treatment by the customs authority, and the court's decision to order the release of goods based on NIDB data, providing a comprehensive understanding of the legal proceedings and outcome.