2018 (8) TMI 1608 - HC - Customs

Implementation of order to release the imported goods by assessing the Bills of Entry - waiver of detention charges - Held that - This Court is convinced that the goods can be directed to be released and the detention certificates can be issued subject to the condition that the interests of the Revenue are safeguarded - The Assistant Commissioner (Legal-II), Chennai Customs has given written instructions vide email dated 12.7.2018 wherein it has been stated that adequate security i.e by executing necessary bond and bank guarantee may be directed to be done for the differential amount of duty involved in these cases. The petitioner is directed to execute a bond in the appropriate form securing the interest of the Revenue and that the release of the goods shall be subject to the outcome of the appeals that may be filed by the Department before the Tribunal - On such execution of the bond, the respondent Department is directed to assess the Bills of Entry within three days thereafter and in terms of the assessment, the duty shall be remitted by the petitioner - On such remittance, the petitioner is permitted to clear the entire cargo within 10 days from the date of remittance and issuance of out of charge clearance. Petition disposed off.

Summary

Issues:
Seeking direction to implement orders of Commissioner of Customs, Department's right of appeal before Tribunal, Monetary limits for filing appeals, Impact of orders passed by Commissioner, Releasing goods with safeguarding Revenue's interests, Execution of bond, Assessment of Bills of Entry, Remittance of duty, Clearance of cargo, Computation of duty, Issuance of detention certificates, Effect of Central Board's instructions.

Analysis:
The petitioner filed writ petitions to direct the respondents to implement orders of the Commissioner of Customs, release imported goods, and issue detention certificates for waiver of charges. The Department argued that they have a right of appeal before the Tribunal and pending appeals would jeopardize Revenue's interests. The Court noted that live consignments would be held up if the Department files appeals, as stay orders are not typically granted in Revenue's appeals.

The petitioner contended that the Department is precluded from filing appeals due to monetary limits set by the Central Board of Indirect Taxes and Customs. The petitioner argued that the tax implication in the cases is below the prescribed limit. The Department submitted that the impact of the orders needs to be considered by the Committee of Commissioners.

The Court decided that the goods can be released and detention certificates issued, ensuring Revenue's interests are safeguarded. The Department instructed the petitioner to execute a bond securing the Revenue's interest. The Court directed the Department to assess Bills of Entry promptly, with duty to be remitted by the petitioner within three days. The petitioner could clear the cargo within 10 days of remittance, and duty computation would be per the Commissioner's orders.

The Court directed the Department to issue detention certificates for waiver of charges within 10 days of duty remittance. The Court left the issue of the Central Board's instructions open, without rendering a finding on its effect. The writ petitions were disposed of with the above directions, emphasizing the importance of safeguarding Revenue's interests throughout the process.