2013 (3) TMI 286 - HC - Customs

Detention of car imported from abroad through the Cochin Port - son of the petitioner who imported the car quite unfortunately lost his life in the meanwhile, and survived by the petitioner alone, who is his mother - respondent denied to release the car in the absence of any proper and valuable of the certificate to establish the legal heirship - Held that - As appellant submits that the petitioner is ready to satisfy any condition to be imposed by the respondent, if necessitated, thus the attempt made by the petitioner is quite transparent and is to have the vehicle released without the necessity to pay unnecessary demurrage charges to the Port, submits the learned counsel. The respondent thus directed to finalise the proceedings with regard to the fact whether any duty is payable in accordance with law & vehicle shall be released to the petitioner on the strength of the proceedings already filed, including the death certificate of the deceased son who imported the vehicle and also on satisfaction of a Bank guarantee. The proceedings shall be finalised at any rate within a period of two weeks from the date of receipt of a copy of the judgment.

Summary

Issues:
1. Import of a new car through Cochin Port and release of the vehicle.
2. Requirement of legal heirship certificate for vehicle release.
3. Demurrage charges and delay in producing necessary certificates.
4. Examination of whether the imported vehicle is brand new or second hand.
5. Imposition of conditions for vehicle release to prevent demurrage charges.

Analysis:
1. The petitioner's son imported a new Toyotto car through Cochin Port, and upon his unfortunate demise, the petitioner, his mother and legal heir, sought the release of the vehicle. The petitioner claimed the car was subject to 'free import' under relevant laws and had undergone detailed inspection by Customs, as evidenced by relevant documents (Ext.P3 and Ext.P4).

2. The respondent demanded a legal heirship certificate for releasing the vehicle, causing the petitioner to approach the Court due to concerns over demurrage charges. The petitioner, a resident of Mumbai, expressed willingness to comply with reasonable conditions for release, emphasizing the urgency to prevent demurrage costs.

3. The respondent cited the absence of a proper legal heirship certificate as the reason for withholding the vehicle. The petitioner's counsel highlighted the potential delay in obtaining the certificate, given the petitioner's residence in Mumbai, and the financial burden of demurrage charges.

4. The Court acknowledged the need to verify whether the imported vehicle was indeed brand new, as claimed by the petitioner, or second hand, which could affect duty payable under the law. The petitioner reiterated readiness to meet any conditions imposed by the respondent for prompt release of the vehicle.

5. Following arguments from both sides, the Court directed the respondent to finalize proceedings regarding duty payable on the vehicle. The vehicle was to be released to the petitioner upon submission of necessary documents, including the death certificate of the deceased son, satisfaction of duty and other payable amounts, and provision of a Bank guarantee to protect the respondent's interests. The Court set a deadline of 'two weeks' for finalizing the proceedings, allowing the petitioner to obtain the required certificate from the appropriate Court in Mumbai.

This judgment resolves the issues surrounding the import and release of the new car, addressing concerns over legal heirship, demurrage charges, and duty payable, while outlining conditions for the vehicle's release to prevent financial burdens on the petitioner.