2018 (10) TMI 114 - HC - Customs

Maintainability of petition - petitioner association is registered under the Societies Registration Act and importers of vegetable seeds are its members - Classification of goods - coriander seeds and chilly seeds imported by the members of the petitioner association. Held that - There is no reason to entertain the present writ petition for several reasons. The petitioner association has not filed list of its members but it appears that some of its members are facing proceedings pursuant to show cause notices issued to them - Whether the goods imported by a particular person were spices or coriander and chilly seeds would be primarily a factual dispute. This lis has to be decided and adjudicated on case to case basis. Petition not entertained by leaving it open to the members of the petitioner association to take up their stand and stance in each specific case.

Summary

Issues:
1. Impugning General Alert Circular No.11/2013 and decision by Director (Customs)
2. Petitioner association not filing list of members
3. Dispute over classification of imported goods as spices or seeds
4. Effect of Goods and Services Tax on the case

Analysis:
The High Court judgment involved a writ petition filed by an association called Northern Seed Association, comprising importers of vegetable seeds. The petition challenged General Alert Circular No.11/2013 and a decision by the Director (Customs) related to the classification of coriander and chilly seeds imported by the association's members. The court noted that the petitioner had not submitted a list of its members, some of whom were facing proceedings based on show cause notices. The key issue was whether the imported goods were classified as spices or seeds, which the court deemed a factual dispute to be decided on a case-by-case basis.

The court highlighted that the General Alert Circular was issued during a previous regime when Special Excise Duty was applicable, and the introduction of Goods and Services Tax could impact the case. The judgment emphasized that the classification issue needed to be adjudicated based on individual circumstances, with the Customs Excise and Service Tax Appellate Tribunal tasked with examining the matter. The court refrained from issuing a notice in the writ petition, allowing the petitioner association's members to address their concerns in specific cases and avail legal remedies if needed.

In conclusion, the court disposed of the writ petition without expressing any opinion on the merits, emphasizing that the intent behind the General Alert Circular was to prevent misuse of the classification. The judgment underscored that the dispute over the classification of imported goods required a case-specific resolution and acknowledged the potential impact of the Goods and Services Tax on the matter.