2022 (11) TMI 1101 - HC - Customs

Provisional release of imported cargo of betel nut product - detention-cum-demurrage waiver certificate in terms of Handling of Cargo in Customs Area Regulation, 2009 and Sea Cargo Manifest and Transhipment Regulations, 2018 - HELD THAT - A series of orders of this Court have been made including Hon'ble Division Bench of this Court in UNION OF INDIA, THE COMMISSIONER OF CUSTOMS, TUTICORIN, THE ASSISTANT COMMISSIONER OF CUSTOMS (SIIB) , TUTICORIN VERSUS M/S. BLACK GOLD TECHNOLOGIES 2020 (10) TMI 597 - MADRAS HIGH COURT , wherein, this Court after taking into consideration the judgment of the Hon'ble Supreme Court in COMMISSIONER OF CUSTOMS VERSUS M/S. ATUL AUTOMATIONS PVT. LTD., AND PARAG DOMESTIC APPLIANCES 2020 (10) TMI 597 - MADRAS HIGH COURT has held In the considered opinion of this Court, in the light of the non taking of stand by the appellants/responds as to the applicability of Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016 and in the light of the stand taken in the Writ Petitions, it cannot be concluded as a restricted item, for which, provisional release is not prohibited. It is also to be pointed out at this juncture that the third appellant/third respondent in compliance of the order passed in the Writ Petitions has also ordered the provisional release, subject to various conditions. Considering the submissions of the learned counsel on either sides and also taking into consideration the judgments of the Apex Court as well as the earlier judgments of this Court, the Respondents are directed to consider the application of the Petitioner for provisional release under Section 110-A of the Customs Act and the same shall be disposed of by the Adjudicating Authority on merits and in accordance with law, within a period of one (1) week from the date of receipt of a copy of this order. This Writ Petition is disposed of.

Summary

Issues:
1. Provisional release of imported cargo of betel nut product.
2. Detention-cum-demurrage waiver certificate.
3. Compliance with Handling of Cargo in Customs Area Regulation, 2009 and Sea Cargo Manifest and Transhipment Regulations, 2018.
4. Application of Advance Ruling Authority's decision.
5. Seizure of goods by Customs Authorities.

Analysis:

1. The Writ Petition was filed to direct the 1st Respondent to act on the Petitioner's application for the provisional release of imported cargo of betel nut product and issue a detention-cum-demurrage waiver certificate. The Petitioner, engaged in the import and local sale of food products, had entered into a contract for the supply of betel nut products. Despite filing the Bill of Entry for clearance, the goods were detained pending inquiries by the 3rd Respondent to ascertain the nature of the goods.

2. The Petitioner sought provisional release based on the import documents from Indonesian authorities. Reference was made to previous judgments, including one by the Advance Ruling Authority and another by the High Court, indicating that seizure of similar products during investigation was not justified. The Petitioner argued that the goods should be provisionally released following the practice of the Major Customs House.

3. The 3rd Respondent had directed the sampling of goods, and the Petitioner cooperated with the investigation. However, the Customs Authorities seized the goods formally, leading to the Writ Petition. The Petitioner's counsel highlighted previous court orders and judgments, emphasizing the need for the Respondents to consider the application for provisional release under Section 110-A of the Customs Act.

4. The Court, after hearing arguments from both parties and considering previous judgments, directed the Respondents to consider the Petitioner's application for provisional release within a week. The decision was based on the consistent view taken by the Court and in compliance with relevant legal provisions and precedents. The Writ Petition was disposed of with no costs awarded.