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TMI Blog2021 (4) TMI 526X X X X Extracts X X X X X X X X Extracts X X X X ..... undergo certain process, which is a manufacturing process, whereas test reports and factual position contended by the other side has been stated to be otherwise. In such disputed scenario, it is not be a case where it can be said that the revenue department is acting without powers or authority having regard to provisions referred to - It would be pertinent to refer that IEC Code No. 0388007737 has not been blocked and it is only to be on alert. So far as request for drawing further samples from seized goods is concerned, it is for the petitioner to make a proper approach. It would be expedient that the concerned authorities proceed with the assessment process as early as possible - petition dismissed. - WRIT PETITION (ST.) No. 3311 OF 2021 - - - Dated:- 8-4-2021 - SUNIL P. DESHMUKH ABHAY AHUJA, JJ. Mr. V. Shreedharan, Senior Advocate, Jas Sanghavi i/b PDS Legal, for the Petitioner. Mr. Anil Singh, Additional Solicitor General, Pradeep Jetly, Sr. Advocate a/w Maya Majumdar J. B. Mishra, for the Respondents. JUDGMENT [PER : SUNIL P. DESHMUKH, J.] 1. Rule. Rule made returnable forthwith. By consent heard learned counsel for parties, finally. 2. Peti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mentioned therein. 8. The officers also drew samples from imported goods lying in stock in presence of the petitioner s representatives under panchanama dated 21.1.2021. Statement of officers were recorded. A seizurte memo has been drawn in respect of 80 and 160 drums of eucalyptol oil sealing them, which were imported during the period November / December, 2020 under the purported belief that petitioner is indulging in mis-declaration of the goods and are liable to confiscation under section 111(m) and 111(o) of the Customs Act. 9. Inspection of goods, under bills of entry, was carried out on 23.1.2021. Samples from two out of three containers arrived at CFS on 23.1.2021 were drawn. On 27.1.2021 officers of respondent No. 2 drew sample from third container. Again on 2.2.2021 search had been conducted at the factory premises and samples were drawn of eucalyptus oil, eucalyptol oil and terpene derivatives. 10. It is being referred to that an alert has been issued and the block has been put on the IEC of the petitioner for imports in the system of the respondents. Bills of entry filed or to be filed by petitioner would not be subjected to assessment without prior authorisat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provided test report of analyses by the overseas supplier showing that goods covered by two containers are eucalyptus oil and goods in third one are eucalyptol. 15. He purports to submit that in technical terms Cineole and Eucalyptol are considered as synonymous but in commercial parlance Eucalyptol and Pure Cineole are considered as different products and different prices are charged and realised by the petitioner. Process of manufacture of pure cineole from eucalyptol oil does not involve any chemical reaction or physical change in the product. However, application of processes to the imported materials would amount to manufacture within the definition of the term manufacturing as per the Foreign Trade Policy 2015-2020. 16. Learned senior advocate, therefore, earnestly urges to have let them have fresh samples from the two containers lying in CFS and have them tested through reputed institution, viz. Institute of Chemical Technology, formerly known as University Department of Chemical Technology. 17. He submits that goods are not liable for confiscation under Section 111(m) of the Act. In the absence of any belief on the part of respondents in the seizure memo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... falsification of the records of receipt of imported goods. Even the warehouse records the description of goods had been misrepresented and manipulated, and as such, the same have led to seizure of goods imported under Bill of Entries dated 25.11.2020 and 1.12.2020 on 21.1.2021 under Section 110 of the Customs Act, 1962. 23. Similar was the case in respect of goods imported vide Bill of Entry dated 15.1.2021, which were seized on 9.2.2021. Samples of the said goods have been drawn and referred to Jawaharlal Nehru Customs House Laboratory (for short JNCH ), which is an authorised customs laboratory for testing of goods imported at JNCH. It has emerged that petitioner has been misutilising the advance authorisations without engaging in manufacturing activity exporting imported goods, and in the process, evades payment of huge government revenue. 24. It is being referred to that it is incorrect to say IEC has been blocked. An alert has been inserted in IEC of the importer which is an internal mechanism, instructing officers in the port for examination and drawal of samples and to obtain NOC from SIIB (I) NJCH before clearance of the goods in view of misrepresentation and manipul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ported goods could not be called as eucalyptus oil, as claimed by the petitioner, albeit, Geo Chem Laboratories test reports are at variance in some respect. 27. According to learned ASG, this shows that actually final product was imported, which was supposed to be exported without carrying out manufacturing operation, as detailed in the application of advance authorisation. 28. According to the respondents, from the test results of JNCH and M/s. Geo Chem Laboratories it is evident that goods imported have been mis-declared. It is contended that investigation has given rise to seizure of imported goods and accordingly the matter is being proceeded with. 29. It has further been referred to that petitioner s request for release of goods provisionally on execution of PD bond without any security in the present case is difficult to be considered since the petitioner has indulged in misrepresentation, manipulation. This may call for cancellation of advance authorisation and strict action. Imported goods cannot be allowed to be cleared without payment of duty or without taking appropriate security as per applicable provisions safeguarding government interest. 30. It has furth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be carried out by which results would not be same, as contended by the revenue. 37. In the facts and circumstances, from foregoing discussion, it emerges that there are several matters in dispute between parties, viz. petitioner and respondents. Petitioner claims that imported goods undergo certain process, which is a manufacturing process, whereas test reports and factual position contended by the other side has been stated to be otherwise. In such disputed scenario, it is not be a case where it can be said that the revenue department is acting without powers or authority having regard to provisions referred to. 38. It would be pertinent to refer that IEC Code No. 0388007737 has not been blocked and it is only to be on alert. So far as request for drawing further samples from seized goods is concerned, it is for the petitioner to make a proper approach. 38. We are therefore, not inclined to indulge into requests by the petitioner under the writ petition. It would be expedient that the concerned authorities proceed with the assessment process as early as possible. Writ petition is, therefore, not entertained and is accordingly dismissed. With aforesaid, Rule is discharged ..... 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