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TMI Blog2024 (3) TMI 297X X X X Extracts X X X X X X X X Extracts X X X X ..... rking requirement as per Chapter 98 of the Customs Tariff Act. In our view, the Respondents would not be justified in not permitting provisional release of Ethyl Alcohol Absolute on the basis that some investigation is being conducted. The classification has to be seen at the time of import by the Petitioner and not the use to which it is put by the buyers of the goods from the Petitioner. There is no condition in the Customs Tariff under chapter 98, which imposes such an obligation on the Petitioner. Thus, the Respondents are not justified in refusing to release the Ethyl Alcohol Absolute provisionally. As correctly submitted by the Petitioner, in similar circumstances, this Court, by its Judgement in M/s. K. Raj and Co. Vs. the Union of India [ 2023 (11) TMI 531 - BOMBAY HIGH COURT] and M/s. K. Raj and Co. Vs. the Union of India [ 2024 (2) TMI 34 - BOMBAY HIGH COURT] has ordered provisional release of the seized goods on execution of a bond. We see no reason as to why similar orders ought not to be passed in the present matter. Thus, Petitioner is entitled for provisional release of the Ethyl Alcohol Absolute under Bill of Entry No. 7568895 on execution of a bond by the Petitione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1. This Chapter is to be taken to apply to all goods which satisfy the conditions prescribed therein, even though they may be covered by a more specific heading elsewhere in the schedule. 2. Heading 9801 is to be taken to apply to all goods which are imported in accordance with the regulation made under section 157 of the Custom Act, 1962 (52 of 1962) and expressions used in this heading shall have the meaning assigned to them in the said regulations. 3. Heading 9802 covers all chemicals, organic or inorganic, whether or not chemically defined, imported in packings not exceeding 500 gms or 500 milliliters and which can be identified with reference to the purity, markings or other features to show them to be meant for use solely as laboratory chemicals. 4. . 5. It is the case of the Petitioner that, since, the Ethyl Alcohol Absolute imported by the Petitioner is in packing of 500 ml, and, since, by virtue of its purity of 99.9% and markings, it is identified as meant for use solely as laboratory chemical, it satisfies the requirements of Note 3 to Chapter 98, and, therefore, by virtue of Note 1 to Chapter 98, it has to be classified under heading 98.02 in preference to any other Cha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 49 of the Act for a period of 30 days from the issuance of the letter. 12. Further, Respondent No. 4, by his seizure memo dated 28th September 2023, has seized the Ethyl Alcohol Absolute on the belief that the same was classifiable under CTH 22.07, and not under CTH 98.02, and that the Petitioner was evading customs duty. 13. On 27th November, 2023, the Petitioner received a copy of the Show Cause Notice dated 26th November, 2023 issued by Respondent No. 5. By the said show cause notice, the Petitioner was called upon to show cause as to why (i) the goods imported by him and covered under Bill of Entry No. 7568895 dated 28.08.2023 should not be classified under CTH 22071090, (ii) differential duty should not be demanded and recovered from the Petitioner along with interest, (iii) goods in question should not be confiscated in terms of Section 111(d) and (m) of the Act read with relevant provisions of the Bombay Prohibition Act and (iv) penalty under Section 112(a) and/or 114A of the Act shall not be imposed upon him. 14 By his letter dated 29th January, 2024, the Petitioner has filed a detailed reply to the said show cause notice and denied the allegations made therein. 15. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e had been regularly assessed under CTH 98.02 by the custom authorities themselves. 22. Further, the Petitioner submits that the imported goods satisfy the requirements of Note 3 of Chapter 98. Therefore, by virtue of Note 1 of Chapter 98, the said Ethyl Alcohol Absolute had to be classified under CTH 98.02 even assuming, without admitting, that they were covered by CTH 22.07. 23. The Petitioner submits that the clearance under Section 47 of the Act had been ordered by the proper officer of customs upon satisfaction that the Mandatory Compliance Requirements Examination Instructions for CTH 98020000 appearing in the Bill of entry were fulfilled. As per Chapter Notes, CTH 98.02 covers all chemicals, organic or inorganic, whether or not chemically defined, imported in packings not exceeding 500 gms or 500 millilitres and which can be identified with reference to the purity, marking or other features to show them to be meant for use solely as laboratory chemicals. 24. The Petitioner submits that, as per the said Compulsory Compliance Requirements, for classification of the goods under CTH 98.02, the proper officer of customs has ascertained that the goods are in packing not exceeding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ustified in refusing to release the Ethyl Alcohol Absolute provisionally. 30. The Ethyl Alcohol Absolute under consideration is not prohibited goods but the only dispute between the Petitioner and the Respondents relates to classification, which, as observed above, has been permitted to be cleared since last many years under CTH 98.02 by the Respondents. 31. As correctly submitted by the Petitioner, in similar circumstances, this Court, by its Judgement dated 4th November 2023 in M/s. K. Raj and Co. Vs. the Union of India (Writ Petition No. 12757 of 2023) and by its Order dated 24th January 2024 in M/s. K. Raj and Co. Vs. the Union of India (Writ Petition No. 391 of 2024) has ordered provisional release of the seized goods on execution of a bond. We see no reason as to why similar orders ought not to be passed in the present matter. 32. For the aforesaid reasons, we pass the following orders:- a) The Petitioner is entitled for provisional release of the Ethyl Alcohol Absolute under Bill of Entry No. 7568895 dated 28th August 2023 on execution of a bond by the Petitioner to secure the differential duty and consequential amount, if any. b) The Respondents are directed to release the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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