2023 (8) TMI 568 - HC - Customs

Detention of export goods - silk carpets - delay in export of the consignment - non-co-operation in the investigation - HELD THAT - There is substance in the contention as alleged on behalf of the Petitioners that the goods ought not to be detained any further as also the Petitioners need to co-operate in the investigation and/answering the questions which the Customs Authorities may have in regard to the consignments. What is also relevant for the Customs Authorities to consider is that the Petitioners are running small businesses. The business is of export of the carpets which are stated to be handmade and customised. Considering this peculiar situation the goods ought not to be detained and are required to be released on the Petitioners furnishing an appropriate bond as may be desired by the custom officers. The Petitioners also shall co-operate in the investigation. It is found from the record that in response to the summons as issued by the Petitioners under Section 108 of the Customs Act 1962 the Petitioners were called upon to submit all shipping bills tax invoices GST returns as also the export details and consignee details photo id and authorization etc. It is seen that all such requirements were met and such details were supplied to the Superintendent of Customs by the Petitioners as seen from the letters of the Petitioners dated 21st May 2023 and 2nd June 2023 - It is not found from the record that there is any other communication from the Customs Officer to furnish any other details. The Petitioners to furnish an appropriate bond within a period of two weeks from today to be submitted to the Deputy Commissioner of Customs/Respondent No. 2. On the Petitioners furnishings such bond the Respondents are directed to forthwith permit the Petitioners to export the consignments in question - petition disposed off.

Summary

Issues involved: Challenge to order of Deputy Commissioner of Customs putting silk carpets consignments on hold for export; Allegation of lack of cooperation in investigation by Petitioners.

Summary:
The Petitioners challenged an order by the Deputy Commissioner of Customs putting their silk carpets consignments on hold for export. The Petitioners contended that they had filed shipping bills and received a Let Export Order, but the consignment was later detained. They received a test report confirming the consignment met export requirements and sought release of the goods. The Petitioners claimed they were willing to cooperate in any investigation. On the other hand, the Respondents argued that the Petitioners had not cooperated in the investigation and needed to provide information and bond as demanded. The Court found merit in the Petitioners' contention that the goods should not be further detained, emphasizing the need for cooperation in the investigation. The Court noted the Petitioners' small business engaged in exporting handmade carpets and ordered the release of the goods upon furnishing an appropriate bond and cooperation in the investigation. The Court disposed of the petitions with directions for bond submission within two weeks for export or release for domestic sale, keeping all contentions open.