2022 (10) TMI 470 - HC - Customs

Release of seized goods - Unflavoured Supari (Cut Betelnut Product) - 540 Bags viz., 27 MTS of Unflavoured Supari (Split Betelnut Product) of Myanmar Origin Unflavoured Supari imported from Myanmar - HELD THAT - The import was made as early as in the month of January, 2021. The Bill of Entry for clearance was filed belatedly on 24-3-2021. Though almost a year has lapsed, till date no decision has been taken as to whether the imported goods have to be classified under CTH 2106 90 30 or under CTH 0802 80 20. The goods are natural products and are prone to natural decay due to efflux of time. The respondents are directed to pass appropriate orders assessing and classifying the goods, based on the report of the Custom House Laboratory, Custom House, Tuticorin, within a period of 10 days from the date of receipt of a copy of this order. In case, the imports made by the petitioner and the imports referred to in the communication of the Chief Commissioner of Customs, Tiruchirappalli, dated 10-5-2021 as communicated by the 3rd respondent are the same, the respondents shall consider the same and pass appropriate orders and ensure that there is no discrimination between the two classes of imports and maintain the uniformity - writ petition is disposed off.

Summary

Issues:
1. Classification of imported goods under different tariff headings.
2. Delay in assessing and classifying imported goods.
3. Dispute regarding the classification of Unflavoured Supari products.
4. Seizure of imported goods and testing by Custom House Laboratory.
5. Direction for appropriate orders and potential re-export of goods.

Classification of Imported Goods:
The petitioner imported Unflavoured Supari products from Myanmar, which were classified as CTH 2106 90 30. However, the respondent argued that the goods should be classified under CTH 0802 80 - Areca nuts and CTH 0802 80 20. The dispute arose due to the nature of the cargo and the applicable regulations prohibiting certain imports based on value per kilogram.

Delay in Assessment:
The petitioner filed the Bill of Entry belatedly on 24-3-2021, leading to a delay in assessing and classifying the goods. Despite almost a year passing since the import, no decision was made on the correct classification, risking natural decay of the goods.

Dispute Over Classification:
The petitioner contended that similar consignments imported by others were allowed to be cleared, highlighting inconsistencies in the assessment process. The petitioner sought provisional assessment and clearance based on the communication from the Chief Commissioner of Customs.

Seizure and Testing of Goods:
The imported goods were seized, and samples were drawn to verify the description, nature, and composition of the cargo. The Custom House Laboratory confirmed the nature of the goods as Betel nut (Unboiled) and not processed, supporting the petitioner's classification argument.

Direction for Orders and Re-export:
The court directed the respondents to assess and classify the goods within 10 days based on the laboratory report. Emphasis was placed on avoiding discrimination between imports and maintaining uniformity. If the goods were found to be prohibited, the petitioner was allowed to re-export them in accordance with the law.

In conclusion, the writ petition was disposed of with no costs, and the connected miscellaneous petition was closed, based on the above observations and directions provided by the court.