2022 (7) TMI 153 - HC - Customs

Classification of imported goods - Betel Nut Products (known as (Supari Unflavoured) - prohibited goods or not - classifiable under CTH 21069030 or not - seeking issuance of waiver certificate for detention and demurrage charges under Regulations of Handling of Cargo in Customs Areas Regulations 2009 - HELD THAT - The issue that arises in these matters has been considered by this Court in M/S. BLUE VISTA INTERNATIONAL LTD. VERSUS THE COMMISSIONER OF CUSTOMS THE ADDITIONAL COMMISSIONER OF CUSTOMS (IMPORTS) THE ADDITIONAL COMMISSIONER OF CUSTOMS (SIIB) THE ASSISTANT / DEPUTY COMMISSIONER OF CUSTOMS CHENNAI 2022 (7) TMI 80 - MADRAS HIGH COURT where it was held that all petitioners are permitted to make applications for provisional release under Section 110A and such applications as/if and when received shall be disposed by the adjudicating authority after hearing the petitioners and simultaneous with a prima facie determination of the classification of the commodity in each case within a period of two (2) weeks from date of receipt of the applications. The direction given in the aforesaid case is extended to the present matters as well. The petitioner has made representations before the respondents both dated 09.05.2022 that shall be disposed by R4 within a period of two (2) weeks from date of receipt of a copy of this order after hearing the petitioner - petition disposed off.

Summary

Issues:
- Mandamus to release imported goods
- Provisional release under Section 110A
- Discretion to pay fine in lieu of confiscation
- Perishable goods and prompt exercise of discretion
- Circular No.22/2004-Cus. regarding release of consignments

Analysis:
The petitioner sought a mandamus to direct the respondents to release imported goods of Betel Nut Products and issue a waiver certificate for detention and demurrage charges. The court referred to a previous order stating that in the case of prohibited goods, the officer's discretion to impose a fine in lieu of confiscation is crucial. However, for non-prohibited goods, the officer must offer the option to pay a fine. The court emphasized the need for prompt exercise of discretion, especially for perishable goods like the ones in question, which had been exposed to inclement weather since February 2022.

The court highlighted a previous case where an order-in-original was reversed due to the need for re-testing of goods by the jurisdictional FSSAI lab. The court permitted all petitioners to apply for provisional release under Section 110A within two weeks, emphasizing a prompt decision by the adjudicating authority. The court also referenced Circular No.22/2004-Cus., which outlined procedures for releasing consignments in classification disputes, stressing the importance of not withholding goods unless prohibited by law or for prosecution, to prevent congestion at ports and warehouses.

The court extended the direction from a previous batch of writ petitions to the present matters, requiring the respondents to dispose of the petitioner's representations promptly. Ultimately, the court disposed of the writ petitions without costs, closing connected miscellaneous petitions.