2019 (11) TMI 907 - HC - Customs

Release of imported goods from Pakistan - rate of duty - Vires of N/N. 5/2019-Customs dated 16.02.2019 - clearance/release of their goods, imported/originating from Pakistan and detained at the customs station Attari Border - payment of duty applicable on the date/time of filing of Bill of Entry - stay of auction proceedings - HELD THAT - Issue decided in the case of M/S RASRASNA FOOD PVT. LTD. VERSUS THE UNION OF INDIA AND ORS. 2019 (8) TMI 1400 - PUNJAB AND HARYANA HIGH COURT where it was held that Without going into vires of impugned notification, it is held that all the Petitioners would be liable to pay duty as was applicable at the time of filing of bill of entry coupled with the fact of the imported goods having entered territory of India on 16.02.2019 prior to the issuance of the impugned notification. The Respondent shall release goods within seven days on payment of duty as declared and assessed, if not already paid, ignoring the impugned N/N. 5/2019. It is directed that the Customs Department shall immediately issue the detention memos to facilitate the release of detained goods lying in the godowns of respondent No.4. It is further directed that in case the detained goods have been auctioned for the lack of any stay order till today, the sale proceeds of the same, in view of the detention memos issued by the Customs Department shall be released to the petitioners. Assessment order set aside - petition allowed.

Summary

Issues:
1. Quashing of assessment orders and Notification No.5/2019-Customs.
2. Mandamus for clearance/release of goods detained at Customs Station.
3. Stay of auction proceedings.

Analysis:
1. The petitions sought to quash assessment orders and Notification No.5/2019-Customs as ultra vires the Constitution of India and Customs Tariff Act, 1975. The petitioners requested a mandamus for the clearance/release of goods imported from Pakistan and detained at the Customs Station Attari Border, along with a stay on auction proceedings. The Court noted that the question involved in all seven petitions was identical, leading to a common order.

2. After considering the arguments from both parties and reviewing the replies filed, the Court found no compelling reason to deviate from its previous decision in a similar case titled 'M/s Rasrasna Food Pvt. Ltd. v. The Union of India & Ors.' dated 26.8.2019. Consequently, the present petitions were allowed in the same terms as the aforementioned case, and any assessment orders were set aside.

3. The Court directed the Customs Department to issue detention memos promptly to facilitate the release of the detained goods held at the godowns of respondent No.4. It further instructed that if any detained goods had been auctioned due to the absence of a stay order, the sale proceeds should be released to the petitioners based on the detention memos issued by the Customs Department. In cases where auctions had already taken place, detention memos were to be issued from the date of detention until the auction date.

In conclusion, the Court granted the relief sought by the petitioners, quashing assessment orders and directing the release of detained goods while providing instructions regarding auction proceedings and the issuance of detention memos. The order was to be included in the paper books of all related matters for reference and compliance.