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TMI Blog2022 (12) TMI 326X X X X Extracts X X X X X X X X Extracts X X X X ..... see where inquiry has been made with the petitioners seeking various documents. The goods are not of a perishable nature nor of hazardous character. They are the goods which could have been seized and in that eventuality, the petitioners could have taken recourse to the provision of Section 110A of the Customs Act for the provisional release of the goods, the extension could have been also possible with six months and further six months by the authority of the Principal Commissioner of Customs or Commissioner of Customs, after reasons to be recorded in writing, who would choose to extend the period. Instead of following this, the goods have been simply detained and the inquiry has been initiated, which is continuing for the period of two years. This would surely defeat the right of the party concerned to even take recourse to the provision of Section 110A of the Customs Act and ask for the provisional release of the goods - Undoubtedly, Section 110(2) of the Customs Act provides for some sort of inquiry where the order for extension is to be passed applying the mind and not in a routine manner. If, otherwise, the officer is of the opinion that for some satisfactory and bona fid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... petitioners on 06.03.2020 requiring to submit documents and they responded on the very next date on 07.03.2020 and provided the documents and other details as required. 2.4 In petitioners case, the documents had indicated the Country-of-Origin certificate having been issued by the Dubai Chamber of Commerce and Industry which mentioned that the Country-of-Origin of goods was Turkey. The petitioners made payment of 4360 USD on 17.03.2020. As the Deputy Commissioner on 14.05.2020 had communicated that the Country-of-Origin was mentioned as Turkey, the movement documents submitted to the Turkey Customs were required to be furnished. 2.5 The reply of the petitioners on 02.06.2020 was to the effect that the Country-of-Origin Certificate was issued by the Dubai Chamber of Commerce as permitted by the UAE. It is also their say that function of the Dubai Chamber of Commerce provided under Article 11 empowers it to issue all types of certificate for the origin of goods and products imported or re-exported from UAE in accordance with the relevant rules and procedure adopted by the Dubai Chamber of Commerce. However, once again, it insisted for the movement documents on 09.07.2020 subm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aw Magnesium Carbonate Lumps falling under the CTH 25191000, the value declared is of Rs.11,32,131/-. It is loaded from the UAE with its origin from Turkey. As per the provisions and the rules made under the Customs Act, the goods attracted Basic Customs Duty (BCD)@ 5% and Integrated Goods and Service Tax (IGST) @ 5% along with the Social Welfare Surcharge @ 10% of BCD. The total tax worked out is Rs.1,21,987.2 paise. The number of reminders and communications have been referred to urge that the petitioners have been asked to submit all original documents and other requisite documents, however, they have not tendered any of them. The reason again tendered by the petitioners is due to COVID-19, nobody is answering from Dubai. 4.1 It is also the case of the respondents that during the on going investigation, a letter had been addressed on 09.07.2020 informing the petitioners that they had not produced any movement documents submitted to Turkey Customs as a case is required to carry on further investigation. But, if the release of the goods under the provisional assessment is needed, requisition letter would be necessary. During the pendency of the investigation regarding the orig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Commerce would govern their case. This certificate is being questioned by the respondent authority. The easiest way for them to question the genuineness is by inquiring with the counter part and this will be feasible only at the level of the Union Ministry or the concerned authority that may have specified by the Union Ministry. The individual at the best can produce the certificate of Country-of-Origin or any other certificate as may be available with him to prove the negative is not feasible for any person. 8.3 Without curtailing the right of the authority concerned to go into the root of this matter, we are constrained to also observe one aspect, at this stage, that there is no seizure in the instant case, although the goods have been detained for the period of more than two years. The exercise of power under Section 110A under the Customs Act, one can take recourse to provided there is a seizure of goods, documents and things under Section 110 of the Customs Act. Sub-section (1A) of Section 110 of the Customs Act provides that when any goods have been seized by the proper officer, the inventory is to be prepared of such goods containing the details relating to quality, q ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 110A of the Customs Act and in absence of any seizure, there is no show cause notice even given within a period of six months which is mandatory in nature. 8.6 Undoubtedly, Section 110(2) of the Customs Act provides for some sort of inquiry where the order for extension is to be passed applying the mind and not in a routine manner. If, otherwise, the officer is of the opinion that for some satisfactory and bona fide reasons within the time frame provided under Section 110(2) of the Customs Act, the investigation could not be completed. 9. The Apex Court in case of Assistant Collector of Customs vs. Charn Das Manhotra, reported in AIR 1972 SC 689 has also amplified the word sufficient cause to mean that the Commissioner must determine on material placed before him that they warrant extension of time, where the order is made in bona fide exercise of powers and within the provisions of the act which confers such power, such order undoubtedly is immune from interference by the Court of Law. And therefore, the adequacy of the cause shown may not be the ground for such interference. The legislature contemplated that ordinarily such investigation would be over within such pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to all concerned to follow the statute. We are releasing the goods provisionally, where the request on the part of the respondent is to follow the decision of this Court rendered in case of Besto Tradelink Limited Versus Principal Commissioner Of Customs. Noticing the fact that the goods were lying with the custom already for seven months and by way of an interim relief the High Court had permitted 15 days of inquiry which was not completed for the Magnesium lump. The Court directed 25% of the value of the goods to be given as a Bank Guarantee or as a Security while releasing the goods. 15. Resultantly, this petition is ALLOWED where the Court would release the goods in favour of petitioners with certain conditions. Considering the value of the goods in the instant case being Rs.11,32,131/-, the Bank Guarantee of Rs.2,00,000/- is directed to be furnished by the petitioners for a period of eight weeks with the further direction to the authority concerned to complete the inquiry within a period of eight weeks from the date of receipt of a copy of this order. In the event of the Country-of-Origin is Pakistan as suspected by the authority, the petitioner shall undertake to furni ..... X X X X Extracts X X X X X X X X Extracts X X X X
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