2024 (2) TMI 382 - HC - Customs

Finalization of assessment and the issue of classification and thereafter release the goods - issuance of Certificate for waiver of demurrage and other charges in terms of Rule 6(1) of Handling of Cargo in Customs Area Regulations 2009 - HELD THAT - The Petitioner waives issuance of a show cause notice in respect of the goods which are the subject matter of Bill of Entry No. 8560406 dated 31st October 2023. An order similar to the Order dated 5th January 2024 be passed in respect of the goods which are the subject matter of Bill of Entry No. 8560406 within a period of two weeks from the date of intimation of this Order. This shall be without prejudice to the right of the Petitioner to challenge the said order being so passed by filing an Appeal and to raise all contentions in the Appeal as may be permitted in law. Petition disposed off.

Issues involved:
The issues involved in this legal judgment include detention of goods at the port, classification of goods under different chapters, delay in assessment and clearance of goods, mis-declaration and undervaluation of imported goods, issuance of show cause notice, re-classification of goods, confiscation of goods, imposition of penalties, and the petitioner's request for waiver of show cause notice.

Detention of Goods at the Port:
The petitioner, engaged in trading industrial oil, imported a consignment of Penetrating Oil which was detained upon arrival in India without any reason provided. After cooperating with the enquiry proceedings, the officers vacated the directions for detaining the consignments and instructed to complete appropriate assessment proceedings based on test reports of samples.

Classification of Goods:
The respondents sought to classify the consignments under Chapter 27, contrary to the petitioner's claim under Chapter 34. The petitioner argued that the duty applicable on Chapter 34 was higher and there was no intention to evade duty. The petitioner also highlighted that clearance was allowed for identical goods imported by others, raising concerns about differential treatment.

Delay in Assessment and Clearance:
Due to the delay in clearing the consignment, the petitioner made representations to finalize the assessment and allow clearance for home consumption. The petitioner's representative explained the nature of the goods and requested the respondents to expedite the assessment process to avoid prejudice to the petitioner.

Mis-declaration and Undervaluation:
The investigating agency found that the imported goods were mis-declared, undervalued, and attempted to import prohibited goods under the guise of declared goods to circumvent guidelines. This led to the issuance of a show cause notice and subsequent adjudication resulting in re-classification of goods, confiscation, and imposition of penalties on the importing firm and its proprietor.

Waiver of Show Cause Notice:
The petitioner expressed willingness to waive the show cause notice for the goods subject to Bill of Entry No. 8560406 and agreed to a similar order as passed on 5th January 2024 without prejudice to the right to challenge the order through an appeal. The court accepted the petitioner's request, directing the issuance of a similar order within two weeks.

Conclusion:
The court disposed of the petition with the petitioner waiving the show cause notice, ordering a similar order to be passed within a specified timeframe, allowing the right to challenge through an appeal, and making no order as to costs.

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