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2023 (11) TMI 1040

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..... r home consumption or warehoused or transhipped within thirty days from the date of the unloading thereof at a customs station or within such further time as the proper officer may allow or if the title to any imported goods is relinquished, such goods may, after notice to the importer and with the permission of the proper officer be sold by the person having the custody thereof. Thus, the first respondent has power to sell the uncleared goods. The procedure for disposal of unclaimed/uncleared goods/cargo under Section 48 of the Customs Act has been clarified by the Commissioner of Customs, Chennai by Public Notification bearing F.No.S.Misc.28/2018-UCC dated 10.12.2018 - Therefore, it is not open for the first respondent to say that the .....

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..... ted goods to Haryana where, the imported goods was subjected to chemical analysis with M/s.Bahadurgarh Footwear Development Services, established under MSECDP Scheme of Ministry of MSME, Government of India. 4. The said M/s.Bahadurgarh Footwear Development Services has given Test Certificate on 13.01.2022 wherein, it has been stated that the sample contained Nil Paraffin Wax. Under these circumstances, the petitioner has issued notices to the respective respondents. 5. The terms of the auction contemplates resolution of dispute through arbitration. Relevant clauses read as under:- 1.SATTVA HI TECH AND CONWARE PRIVATE LIMITED, the owner/seller, will be hereinafter referred to as PRINCIPAL and MSTC Ltd., the Selling Agent of PRINC .....

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..... Conciliation Act and the Arbitrator shall be appointed by the Principal. The seat of arbitration shall be Chennai. 6. The Legal Notice dated 28.06.2022/30.06.2022 sent by the petitioner's Counsel was responded by the first respondent by a Reply dated 10.09.2022. The second respondent has also responded by a Reply dated 30.03.2022 by directing the petitioner to approach the first respondent as the second respondent was only a service provider in the auction of unclaimed/uncleared import cargos from the Custody of the first respondent. 7. The petitioner has thereafter issued a Notice under Section 21 of the Arbitration and Conciliation Act, 1996, with a request to the first respondent to nominate an arbitrator to resolve the dispu .....

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..... terms of Section 48 of the Customs Act, 1962. 13. The learned Counsel for the first respondent further submits that as far as the first respondent is concerned, the first respondent is governed by the terms of license issued by the Customs Department and by the Handling of Cargo in Customs Areas Regulations, 2009. It is further submitted that the regulation 6 does not contemplate any clause for arbitration of the dispute in respect of sale of goods. 14. The learned Counsel for the first respondent further submits that there is also no consensus ad idem in the sense and there is no contract between the petitioner and the first respondent in the auction that was contemplated on 02.12.2021. 15. That apart, it is submitted that prior .....

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..... nd with the permission of the proper officer be sold by the person having the custody thereof. Thus, the first respondent has power to sell the uncleared goods. The expression, the Customs Station includes a Container Freight Station like the petitioner. The expression is defined in Section 2(13) of the Customs Act, 1962. It reads as under:- Section 2 (13) customs station means any customs port, customs airport or land customs station. 18. A person handling import and export cargo providing customs cargo services, like the first respondent governed by Regulation 6 of the Handling of Cargo in Customs Areas regulations, 2009. Regulation 6(1)(m) contemplates the Customs Cargo Service Provider like the first respondent shall dis .....

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..... - 20, is appointed as an Arbitrator to enter upon reference and adjudicate/resolve the inter se dispute between the parties. (ii) The learned Arbitrator appointed herein, shall after issuing notice to the parties and upon hearing them, endeavour to complete the arbitral proceedings and pass an award strictly in accordance with the provisions of the Arbitration and Conciliation Act, 1996, as expeditiously as possible, preferably within a period of twelve months after the date of completion of pleadings under Sub-Section 4 to Section 23 as is contemplated in Section 29-A of the Arbitration and Conciliation Act, 1996, without getting influenced by any of the observations made by this Court in this order. (iii) The learned Arbitrator .....

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