2024 (1) TMI 406 - HC - Customs

Seeking release of various models of second hand Highly Specialised Equipment digital Multifunction Print, Copying Scanning Machines, imported by the petitioner - HELD THAT - In the present case, the petitioner had sought for the release of goods and in a batch of writ petitions, this Court had already dealt with the similar issue and passed the following order on 23.11.2023 in 2023 (12) TMI 198 - MADRAS HIGH COURT , where it was held that This Court is inclined to allow these writ petitions to the extent of releasing the goods provisionally. There shall be a direction to the respondents to consider the plea of the petitioners to release the goods by way of provisional release on condition that, the petitioner shall pay/deposit the enhanced duty amount. On receipt of such enhanced duty amount paid by the petitioners, the goods in question shall be released within a period of three (3) weeks thereafter - For payment of such duty, quantification shall be made by the Customs forthwith within one (1) week from the date of receipt of a copy of this order. On receipt of such quantification, the payment shall be immediately made by the petitioners and on receipt of the payment in entirety, the goods shall be released as indicated above at the outer limit of three (3) weeks. Petition disposed off.

Issues Involved:
1. Release of second-hand Highly Specialised Equipment digital Multifunction Print, Copying & Scanning Machines.
2. Applicability of previous court orders to the present case.
3. Compliance with Foreign Trade Policy 2023 and DGFT guidelines.
4. Provisional release of goods and payment of enhanced duty.

Issue 1: Release of second-hand Highly Specialised Equipment digital Multifunction Print, Copying & Scanning Machines
The petitioner sought the release of imported second-hand digital Multifunction Print, Copying & Scanning Machines. The respondent argued that these goods required authorization from DGFT and compliance with the Compulsory Registration Orders (CRO) under the Foreign Trade Policy 2023. The court noted that the goods fell under Clause 2.31 of the Foreign Trade Policy 2023, specifically under category I(d), which allows for the free import of second-hand capital goods without restrictions. The court referenced a similar case where the Supreme Court stayed the confiscation of goods, supporting the petitioner's claim for the release of goods.

Issue 2: Applicability of previous court orders to the present case
The petitioner argued that a previous court order dated 23.11.2023, in a similar batch of writ petitions, directed the release of goods and should apply to the current case. The respondent countered that the previous cases involved a challenge to show cause notices, which were not issued in the present case. The court found that the previous order was relevant as it dealt with the release of goods, not the challenge to show cause notices, and thus was applicable to the present case.

Issue 3: Compliance with Foreign Trade Policy 2023 and DGFT guidelines
The respondent emphasized the need for authorization from DGFT and compliance with CRO for importing the goods. The court examined Clause 2.31 of the Foreign Trade Policy 2023 and concluded that the petitioner's goods did not fall under the restricted category I(b) but under the free category I(d). The court also noted that the Supreme Court had previously stayed the confiscation of similar goods, indicating that the petitioner's imports were permissible under the policy.

Issue 4: Provisional release of goods and payment of enhanced duty
The court ordered the provisional release of the goods, directing the petitioners to pay the enhanced duty amount. The customs authorities were instructed to quantify the duty within one week, and upon payment, release the goods within three weeks. The court also clarified that this order would not prevent the customs department from proceeding with further legal actions, including adjudication. Additionally, the court mentioned that any application for waiver of demurrage charges should be considered objectively by the respondents.

Conclusion:
The writ petitions were ordered with directions for the provisional release of goods upon payment of enhanced duty, and the customs department was instructed to proceed with further legal actions as necessary. The court emphasized the need for timely decision-making by the customs authorities and the objective consideration of any application for waiver of demurrage charges.

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