2010 (7) TMI 186 - HC - Customs

Release of documents - Let Export Order given on 22.12.2009 and duty @ 5% paid on 23.12.2009. loading of vessel commenced on 20.12.2009 and completed on 25.12.2009. Rate of duty increased to 10% w.e.f. 24.12.2009 and Department seeking additional duty. Petitioner contending that duplicate/exchange control copy of shipping bill and statutory declaration form not provided. Held that rate of duty and valuation applicable as prevalent on date of let export order. Demand need to be raised finalization assessment, if additional duty sought to be recovered. Documents cannot be withheld after issue of let export order. Document to be released.

Summary

Issues:
1. Non-release of duplicate/exchange control copy of shipping bill and SDF.
2. Interpretation of Sections 16, 50, 51, and 39 of the Customs Act, 1962.
3. Provisional assessment and duty payment.
4. Legal implications of a "let export order."

Issue 1: Non-release of Documents
The petitioner presented a shipping bill for export, and after provisional assessment and payment of duty at 5%, a "let export order" was issued. However, the Department did not release the duplicate/exchange control copy of the shipping bill and SDF, hindering compliance with Foreign Exchange Management regulations. The petitioner argued entitlement to these documents based on CBEC's Customs Manual of Instructions.

Issue 2: Interpretation of Relevant Sections
The petitioner contended that duty on export goods is determined by the rate in force on the date of the "let export order," as per Section 16(1) of the Act. Conversely, the Respondent argued for consideration of Section 39 in conjunction with Sections 50 and 51, emphasizing the date of the order for loading under Section 39 as the relevant date for duty calculation.

Issue 3: Provisional Assessment and Duty Payment
The petitioner highlighted the provisional assessment under Section 18, where duty at 5% was paid. The Respondent's alleged oral direction for an additional 5% duty raised concerns regarding the legality of withholding documents post-"let export order." The CESTAT case reference supported the petitioner's stance on duty calculation.

Issue 4: Legal Implications of a "Let Export Order"
The Court analyzed Sections 50 and 51, emphasizing the significance of a "let export order" in permitting clearance and loading for exportation. The CBEC's Customs Manual of Instructions further clarified the procedural aspects post-"let export order," underscoring the obligation to release documents after issuance. The judgment ultimately made the Rule absolute in favor of the petitioner, directing the release of the withheld documents, subject to further legal actions for duty recovery if necessary.