2007 (2) TMI 226 - HC - Customs

Summary

Issues:
1. Petition for direction to clear goods at CFS, Ludhiana.
2. Dispute over classification of goods as edible or non-edible oil.
3. Provisional assessment order requiring duty payment.
4. Permission to file an appeal against the assessment order.

Analysis:
1. The petitioner filed a petition under Article 226 seeking direction for the clearance of imported goods lying at CFS, Ludhiana. The petitioner had imported goods in November 2006 and filed bills of entry, but clearance was not permitted by the proper officer. Subsequently, the petitioner appeared before the proper officer on 8-12-2006, and the matter was referred to the competent authority on 22/28-12-2006. As the goods were not released, the petitioner filed the petition.

2. The dispute in this case revolved around the classification of goods under Entry 15119090 of the notification issued by the respondents under Section 14(2) of the Customs Act, 1962, as edible or non-edible oil. The provisional order of assessment dated 27-12-2006 required the petitioner to deposit duty based on the classification of the goods. The competent authority concluded that duty was to be calculated at different rates depending on the nature of the goods declared in the bills of entry.

3. The court, without delving into the merits of the classification controversy, directed the respondents to accept duty from the petitioner at a flat rate of US $300 per metric tonne on a provisional basis, subject to final assessment. The petitioner was also permitted to file an appeal against the provisional assessment order. This decision was based on a test report indicating that the goods, initially classified as edible, were found to be non-edible.

4. The court's order included a directive for the release of goods within three days of completing all formalities in accordance with the law. Additionally, the petitioner was granted permission to file an appeal against the assessment order. The court instructed that a copy of the order be provided on payment of usual charges for reference and compliance purposes.