2000 (11) TMI 558 - AT - Customs

Summary

Issues:
Whether M/s. Hoogly Dock & Port Engineers Ltd. has the right to relinquish title of imported packaging containers under sub-section (2) of Section 23 of the Customs Act, 1962.

Detailed Analysis:

1. Facts and Circumstances:
The appellants imported containers for construction purposes and were advised by the foreign supplier that the old containers would be taken back. After clearance, the foreign supplier requested disposal of non-reusable containers. The Customs initially valued the containers at Rs. 5,65,525, but later increased it to Rs. 8,48,825, leading to a duty liability dispute. The appellants sought permission to relinquish title to the containers, citing incorrect valuation.

2. Legal Arguments - Appellants' Position:
The appellants argued that they did not file any Bill of Entry for the empty containers as they were originally meant for re-export. They contended that since no clearance order was issued for the containers, they had the statutory right to relinquish the title under Section 23(2) of the Customs Act, 1962. They relied on legal precedents supporting the relinquishment of title before clearance orders are issued.

3. Revenue's Position:
The Revenue, represented by the JDR, supported the Additional Collector's decision, which denied the appellants' request to relinquish title to the containers.

4. Tribunal's Decision:
The Tribunal reviewed the arguments and documents, noting that the valuation and duty liability were not in question. The key issue was whether the appellants could relinquish title to the empty containers. The Tribunal found in favor of the appellants, emphasizing that no Bill of Entry was filed for the empty containers, and the Customs failed to obtain a guarantee bond for re-export. As a result, the appellants had the right to relinquish title under Section 23(2) of the Customs Act, 1962. The Tribunal set aside the impugned order and allowed the appeal.

In conclusion, the Tribunal's decision granted M/s. Hoogly Dock & Port Engineers Ltd. the right to relinquish title to the imported packaging containers under Section 23(2) of the Customs Act, 1962, based on the specific circumstances of the case and the absence of formal clearance procedures for the containers.