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2020 Supreme(Bom) 959
IN THE HIGH COURT OF BOMBAY
Ujjal Bhuyan, Abhay Ahuja, JJ.
Supreme Industries Ltd - Appellant
Versus
Cbic And Others - Respondent
Writ Petition (Stamp) No. 92578 of 2020; Interim Application No. 92972 of 2020
Decided On : 27-10-2020
Ashwin Gopal Kumar, Advocate, Ankit Kulkarni, Advocate, Pradeep S Jetly, Advocate, Jitendra B Mishra, Advocate
The main legal point established in the judgment is the requirement for a speaking order with reasons in the adjudication process under the Customs Act.
Headnote:
Customs Act - Valuation of Goods - Standing Orders - [PLASTICS INDUSTRY] - [Customs Act, 1962, Section 12, Section 125, Section 112(a), Section 17(4), Section 17(5)] - The court set aside the order in original and directed the respondent to depute another officer to hear the case and pass a speaking order with reasons within two weeks. The court also disposed of the writ petition and the interim application.
Fact of the Case:
The petitioner, a plastics industry, imported goods and filed a writ petition challenging the vires of the Standing Orders and the valuation of the goods under the Customs Act. The respondent authorities raised queries on the value of the imported goods, leading to detention and penal charges for the petitioner.
Finding of the Court:
The court found that the conduct of the adjudicating authority was questionable and directed the respondent to depute another officer to hear the case and pass a speaking order with reasons. The court also disposed of the writ petition and the interim application.
Issues: The issues involved the valuation of imported goods, the conduct of the adjudicating authority, and the challenge to the vires of the Standing Orders.
Ratio Decidendi: The court set aside the order in original and directed the respondent to pass a speaking order with reasons. The court also did not consider it necessary to deal with the challenge to the vires of the Standing Order.
Final Decision: The writ petition was disposed of, and the interim application was also disposed of. The court directed the respondent to depute another officer to hear the case and pass a speaking order with reasons within two weeks.
JUDGMENT
Abhay Ahuja, J. - Heard. Rule. Rule made returnable made forthwith. With the consent of the learned Counsel for the parties, this Writ Petition is being heard finally.
2. This Petition dated 4th September, 2020 has been moved by the Petitioner vide Advocate's praecipe dated 6th September, 2020, for the following reliefs:-
"(a) That this Hon'ble Court be pleased to issue a writ of certiorari or any other appropriate writ, direction or order and quash the impugned Standing Orders;
(b) That this Hon'ble Court be pleased to issue a writ of mandamus or any other appropriate writ, direction or order commanding the Respondents its agents, officers and servants to forthwith release the goods imported by the Petitioner by accepting the price of the goods indicated in the invoice and declared in the Bill of entry, for the purposes of valuation in Customs law;
(c) That this Hon'ble Court be pleased to issue a writ of mandamus or any other appropriate writ, direction or order commanding the Respondents to pay to the Petitioner, the aggregate of ascertainable costs and losses suffered by the Petitioner, including the detention charges and the CFS ground rent charges, which arose due to the gross inaction and culpable actions of Respondent No.4 and other concerned Officers;
(d) That, pending the hearing and final disposal of this writ petition, this Hon'ble Court be pleased to stay the operation of the impugned Standing Orders."
3. The Petitioner is in the plastics industry with a variety of applications in moulded furniture, storage and material handling products, XF films and products, performance films, industrial moulded products, protective packaging products, composite plastic products, plastic piping system and petrochemicals and offers vide range of plastic products in India manufactured at its various plants. It is the case of the Petitioner that it has imported various inputs required for its manufacturing units. In respect of one such import of PVC resin suspension grade under CTH 39041020 imported from USA , the Petitioner filed Bill of Entry No. 8389492 dated 6th August, 2020 for home consumption by making self-declaration of the value. However, according to the Petitioner, the Respondent-Authorities have raised frivolous queries noting that unit price for the imported cargo in the commercial invoices is lower than the rates found in the website of 'S&P Global Platts' and that on such untenable grounds, the goods of the Petitioner were withheld at Nhava Sheva Port, Mumbai.
4. The Petitioner is aggrieved by the expiry of free time allowed by the shipping line and container freight station for clearance of imported cargo attracting huge penal charges in the form of container detention charges, ground rent etc. due to the alleged failure of the Respondent-Authorities to clear for home consumption the goods imported by the Petitioner under Bill of Entry No.8389492 dated 06th August 2020.
5. The Petitioner has, therefore filed this Writ Petition, not only challenging the action/ omission as above, but also the vires of the Standing Order No.7493/99 dated 3rd December, 1999 and its subsequent amendment in Standing Order No.44/2016 dated 8th July, 2016, regarding PLATT Valuation of the Petitioner's goods as being contrary to the Customs Act, 1962 (the "Customs Act").
6. On 10th September, 2020, when this matter was listed, this Court passed the following order in the Writ Petition:-
"[1] Heard learned counsel for the parties.
[2] Issue notice returnable three weeks.'
[3] Mr. J. B. Mishra, learned counsel assisting Mr. Pradeep Jetly, learned senior counsel waives notice for all the Respondents.
[4] Respondents to file affidavit.
[5] Stand over to 06.10.2020."
7. By an Interim Application dated 18th September, 2020, the Petitioner has prayed that the imported goods be provisionally released in accordance with Section 18 of the Customs Act.
8. On 22nd September, 2020, this Court has passed the following order in the Interim Appli
