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2022 (1) TMI 817 - HC - CustomsValuation of imported goods - Black Pepper Sri Lankan origin - invoices qua said consignment have been overvalued so as to circumvent Minimum import price (MIP) of ₹ 500/- per kilogram - prohibited goods - import of Black Pepper up to the value of ₹ 500/- per kilogram is prohibited vide notification No.21/2015-2020 dated 25.07.2018 - HELD THAT - Hon'ble Division Bench by way of an intra-court appeal is M/S. AL QAHIR INTERNATIONAL VERSUS THE COMMISSIONER OF CUSTOMS, THE DEPUTY DIRECTOR, DIRECTORATE OF REVENUE INTELLIGENCE, TUTICORIN 2021 (9) TMI 369 - MADRAS HIGH COURT . In Al Qahir case, learned Single Judge directed release of goods on execution of bank guarantee for interest, penalty or charges that may be charged. This is vide paragraph 38 (i) of the Single Judge's order. The importer carried the matter in appeal by way of intra-court appeal and a Hon'ble Division Bench in M/S. AL QAHIR INTERNATIONAL VERSUS THE COMMISSIONER OF CUSTOMS, THE DEPUTY DIRECTOR, DIRECTORATE OF REVENUE INTELLIGENCE, TUTICORIN 2021 (12) TMI 1160 - MADRAS HIGH COURT order modified the conditions imposed by learned Single Judge with regard to bank guarantee alone and said bond will suffice. The second respondent i.e., the Joint Commissioner of Customs is directed to quantify the duty, bond amounts etc., communicate the same to the petitioner forthwith and release the said consignment within one week of said remittance i.e., quantified duty/bond amounts/execution of bonds by the petitioner - It is made clear that nothing contained in this order will stand in the way of an independent inquiry by the authorities in the ongoing investigation. Petition disposed off.
Issues Involved:
1. Seizure of imported black pepper consignment. 2. Alleged overvaluation to circumvent Minimum Import Price (MIP). 3. Provisional release of seized goods. 4. Legal precedents and their applicability. 5. Procedural aspects and compliance with judicial orders. Detailed Analysis: 1. Seizure of Imported Black Pepper Consignment: The petitioner imported 30,120 kilograms of black pepper from Sri Lanka, filing a Bill of Entry on 13.07.2021. After more than two and a half months, the petitioner received a summons under Section 108 of the Customs Act, 1962, and subsequently, the consignment was seized on 26.10.2021 without stated reasons. The petitioner sought the release of the consignment through the court. 2. Alleged Overvaluation to Circumvent Minimum Import Price (MIP): The crux of the issue, as per the Revenue's counter-affidavit, was the alleged overvaluation of invoices to bypass the MIP of ?500 per kilogram, as import below this price is prohibited by DGFT Notification No.21/2015-2020 dated 25.07.2018. The petitioner argued that similar cases had resulted in provisional releases by the court, citing multiple judicial orders. 3. Provisional Release of Seized Goods: The petitioner referenced Section 110A of the Customs Act for the provisional release of the consignment. The court examined previous orders where similar consignments were released provisionally. The Revenue counsel cited Board Circulars No.1/2011 and No.35/2017, emphasizing the need for sufficient security. The court noted that in similar cases, provisional release was granted upon execution of a bond instead of a bank guarantee. 4. Legal Precedents and Their Applicability: The court distinguished the present case from others cited by the Revenue, such as the G.P.R. Leathers case, which pertained to export and misdeclaration, and the Unik Traders case, which involved a Certificate of Country of Origin dispute. The court found the Al Qahir International case to be virtually identical, where the Division Bench had modified the Single Judge's order to require a bond instead of a bank guarantee for provisional release. The court also noted that similar orders had been accepted and complied with by the Department. 5. Procedural Aspects and Compliance with Judicial Orders: The court directed the Joint Commissioner of Customs to quantify the duty and bond amounts and release the consignment within one week of remittance and execution of bonds by the petitioner. It clarified that the ongoing investigation and adjudication process could proceed independently and that no opinion was expressed on the merits of the allegations. The issue of waiver of demurrage charges was left open for the authorities to pursue as per applicable rules and regulations. Conclusion: The court granted the petitioner's request for the provisional release of the seized consignment of black pepper, following the precedent set by the Division Bench in the Al Qahir International case. The court directed the customs authorities to quantify the necessary amounts and release the goods upon compliance by the petitioner, allowing the investigation to continue independently.
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