2021 (2) TMI 1100 - HC - Customs

Seeking direction to release goods imported - county of origin of the consignment - Section 110A of the Customs Act, 1962 - HELD THAT - The determination of origin of the consignment is best left to the authorities as it involves examination of documents and relevant material. The respondents are thus directed to commence proceedings for investigation, issue a show cause notice at the earliest, complete adjudication and pass an order-in-original within a period of two months from today. Condition imposed for provisional release - HELD THAT - The direction to the petitioner for furnishing of PD bond and bank guarantee covering the component of anti-dumping duty is sustained. However, the levy of fine and penalty at this stage is pre-mature and this condition is thus dispensed with. In the course of adjudication, the respondent /authorities will make a reference to the CAROTAR, 2020 (Rules of Origin under Trade Agreements (FTA/PTA/CECA/CEPA)) which states that the designated director of the ICD/CBIC has been designated as a Nodal Officer for taking up issues relating to issuance of place of origin and obtain a determination from the Nodal Officer in this case - petition disposed off.

Summary

Issues involved:
Challenge to order seeking release of imported goods, determination of country of origin for anti-dumping duty, direction to furnish PD bond, bank guarantee, fine, and penalty, reference to CAROTAR 2020 for origin determination.

Analysis:
The petitioner challenged an order seeking the release of imported goods based on the country of origin. The dispute centered around whether the consignment originated from Singapore (no anti-dumping duty) or Malaysia (attracts ADD). The petitioner contended that the consignment was from Singapore, disputing the order requiring a PD bond for 100% value of goods, along with fines and penalties. The court acknowledged that determining the consignment's origin required examination of documents and material, directing authorities to start an investigation, issue a show cause notice promptly, complete adjudication, and issue an order-in-original within two months.

Regarding the provisional release conditions, the court upheld the requirement for the petitioner to furnish a PD bond and bank guarantee for the anti-dumping duty component. However, the court deemed the imposition of fines and penalties premature at this stage, thus dispensing with this condition. The court instructed the authorities to refer to CAROTAR 2020 during adjudication, specifically highlighting the role of the designated director of ICD/CBIC as the Nodal Officer for determining the place of origin.

Consequently, the writ petition was disposed of with the above directions, and the connected miscellaneous petition was closed without any costs being awarded.