2017 (9) TMI 1091 - HC - Customs

Release of detained goods - Held that - no proceedings have been initiated against the petitioner for the quantity of cargo already released. That apart, the petitioner has been regular importer of the very same goods, and on an earlier occasion, the goods detained were released by obtaining a bond from the petitioner - It appears that, in the instant case, the test report, which has to be obtained by the petitioner based on which, goods covered under 7 Bills of Entry, dated 17.03.2017 released based on simple bond, is the same product and the test report being well within the period of six months, there can be no difficulty for the Department to accept the said report, and provisionally release the cargo. Thus, merely because, the petitioner has given a letter, dated 06.06.2017, stating that 15% of the goods may be detained, cannot operate as estoppel against the petitioner - respondents are directed to release the goods - decided in favor of petitioner..

Summary

Issues:
Petition seeking Writ of Certiorarified Mandamus to quash communication and release detained goods.

Analysis:
The petitioner, a Public Limited Company engaged in import and sale of various products, sought to quash a communication from the Customs Department regarding the detention of goods covered under Bills of Entry. The petitioner had imported similar goods previously and faced detention due to a test requirement. A circular was referenced, stating that assessment for the previous Bills of Entry was provisional and detention was unnecessary. Despite this, the petitioner agreed to detain 15% of the goods, with 80% already released. The Customs Department awaited a test report for the released goods.

The Court noted that no action had been taken against the petitioner for the released goods. Referring to Circular No.23 of 2004, which allows for the validity of a test report for six months for goods of the same specification, quality, importer, supplier, and country of origin, the Court found no difficulty in accepting the test report for the current goods. The Court emphasized that the petitioner's letter agreeing to detain 15% of the goods should not bind them. Consequently, the Court directed the Customs Department to provisionally release the detained 15% of goods upon obtaining a bond from the petitioner. The Department was allowed to assess the Bills of Entry after receiving the test report and issuing a show cause notice. The provisional release was to be completed within 10 days of the order, with no costs imposed.