2022 (1) TMI 575 - HC - Customs

Classification of imported goods - plastic bubble toy or plastic toy - Request for waiver of demurrage/storage/warehouse charges - HELD THAT - The Bill of Entry is pending assessment since 19.10.2021. Whether the imported goods are parts of plastic bubble toy or plastic toy, is to be determined by the Assessing Officer. In fact, the nature of product which has been described in the Bill of Entry does not require a certificate of the Chartered Engineer. However, a sample was referred by the second respondent to a Chartered Engineer who has given a report on 02.12.2021. Thus, adequate materials are available before the first respondent (Assessing Officer) to decide the correct classifications and whether the imported goods are restricted/prohibited - Considering the fact that, the impugned Bill of Entry has not assessed for a very long period, the respondents are directed to assess the goods within a period of 15 days from the date of receipt of copy of this order. This writ petition stands disposed of.

Summary

Issues:
1. Direction to forward case file for assessment and release of goods
2. Alleged mis-declaration of imported goods
3. Requirement of Bureau of Indian Standards certification
4. Delay in assessment of Bill of Entry
5. Evasion of Customs Duty on previous imports

Analysis:
1. The petitioner sought a writ to direct the second respondent to forward the case file for Bill of Entry No.5903739 dated 19.10.2021 to the first respondent for assessment and provisional release of goods, along with a request for waiver of demurrage charges. The petitioner claimed to be a regular importer of parts of plastic toys, soap water solution, and whistle for school supplies. The Intelligence and Investigation Branch confirmed the nature of the imported goods, leading to the court's direction for assessment within 15 days.

2. The petitioner contended that the goods were correctly declared in the Bill of Entry and should be assessed accordingly. However, the respondents alleged mis-declaration, stating that the imported goods were misrepresented as plastic bottle sticks and accessories of soap water solution instead of full plastic toys. The issue of mis-declaration was raised concerning the classification of the imported goods.

3. The respondents argued that the imported goods required a certification from the Bureau of Indian Standards (BIS) to ensure quality control, which the petitioner failed to provide. They claimed that the petitioner evaded tax through incorrect declarations and posed risks by not adhering to BIS standards. The necessity of BIS certification for certain imported goods was a crucial point of contention in the judgment.

4. The court noted the delay in assessing the Bill of Entry since 19.10.2021 and directed the respondents to complete the assessment within 15 days. The court emphasized that the Assessing Officer had sufficient information, including a report from a Chartered Engineer, to determine the correct classification of the imported goods and whether they were restricted or prohibited. The issue of delayed assessment was addressed with a clear directive for timely action.

5. The judgment left open the question of whether there was evasion of Customs Duty on previous imports by the petitioner, indicating that this aspect would be decided in accordance with the law. The issue of potential Customs Duty evasion on prior imports was acknowledged but not conclusively determined in the current judgment. The court disposed of the writ petition with these observations, emphasizing the need for timely assessment and compliance with regulatory standards.