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2022 (2) TMI 157 - HC - CustomsRelease of seized imported goods - Black Pepper of Sri Lankan origin - over valuation to circumvent a custom notification - Section 110A of 'the Customs Act, 1962 - HELD THAT - The issue decided in the case of M/S. TRAVANCORE SOLVENTS OILS VERSUS THE COMMISSIONER OF CUSTOMS, THE JOINT COMMISSIONER OF CUSTOMS, THE ASSISTANT COMMISSIONER OF CUSTOMS (SIIB) , THE SUPERINTENDENT OF CUSTOMS 2022 (1) TMI 817 - MADRAS HIGH COURT where on similar issue it was held that 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. In the light of the undisputed position that the matter is directly and squarely covered and in the light of the fact that M/s.Travancore Solvents Oils case has been made by following orders of Hon'ble Division Bench, there shall be a similar order in this matter also. To be noted, the earlier orders have been complied and there has been provisional release of the consignment which has been captured in the aforementioned order. Petition disposed off.
Issues Involved:
1. Import of Black Pepper of Sri Lankan origin. 2. Seizure of consignment on alleged grounds of overvaluation. 3. Provisional release of consignment under Section 110A of the Customs Act, 1962. 4. Allegation of circumventing Minimum Import Price (MIP) notification. 5. Compliance with previous judicial orders for provisional release. Detailed Analysis: 1. Import of Black Pepper of Sri Lankan Origin: The matter pertains to the import of Black Pepper from Sri Lanka, specifically involving a consignment of 30120.00 kilograms. The petitioner filed a Bill of Entry dated 13.07.2021 for home consumption. The consignment was later seized by customs authorities, which led to the petitioner seeking its release under Section 110A of the Customs Act, 1962. 2. Seizure of Consignment on Alleged Grounds of Overvaluation: The consignment was seized on the grounds that the invoices were allegedly overvalued to circumvent the Minimum Import Price (MIP) of ?500 per kilogram, as stipulated by the Directorate General of Foreign Trade (DGFT) notification No. 21/2015-2020 dated 25.07.2018. The petitioner was summoned under Section 108 of the Customs Act to provide various documents, which were duly submitted. Despite this, the consignment was not released, prompting the petitioner to make representations and eventually seek judicial intervention. 3. Provisional Release of Consignment under Section 110A of the Customs Act, 1962: The court referred to several previous orders directing the provisional release of similar consignments under Section 110A of the Customs Act. Notably, the court cited the case of M/s. Travancore Solvents & Oils, where provisional release was ordered under certain conditions. The court emphasized that the issue of provisional release was no longer res integra, as similar consignments had been released following judicial orders. 4. Allegation of Circumventing Minimum Import Price (MIP) Notification: The crux of the Revenue's argument was that the invoices were overvalued to circumvent the MIP notification. The court noted that the issue of provisional release had been addressed in previous cases, where similar allegations were made. The court also considered the Board Circulars and previous Division Bench orders cited by the Revenue but found them distinguishable on facts. 5. Compliance with Previous Judicial Orders for Provisional Release: The court observed that previous orders for provisional release, including those in the cases of M/s. Global Metro and M/s. Southern Trade Links, had been complied with by the Revenue. The court noted that the factual matrix in the current case was identical to that in the Al Qahir International case, where a Division Bench had directed the release of goods on execution of a bond instead of a bank guarantee. Conclusion: The court directed the Joint Commissioner of Customs to quantify the duty and bond amounts and release the consignment within one week of the petitioner fulfilling these requirements. The court clarified that the ongoing investigation and adjudication 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 to be pursued according to applicable rules and regulations. There was no order as to costs.
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