The main legal point established in the judgment is the requirement to comply with the statutory provisions and principles of natural justice, as outlined in section 124 of the Customs Act and Rule 12 of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007.

JUDGMENT :

Heard Mr. Prithviraj Choudhari, learned counsel for the petitioner and Mr. Pradeep S. Jetly, learned senior counsel for the respondents.

2. By filing this petition under Article 226 of the Constitution of India, petitioner seeks quashing of order dated 23.09.2020 passed by the Joint Commissioner of Customs, Gr. VA, Nhava Sheva-V i.e., respondent No.3 and further seeks a direction to the respondents to release the imported goods of the petitioner covered by Bill of Entry No.8311310 dated 28.07.2020.

3. Case of the petitioner is that it is a private limited company registered under the Companies Act, 1956 and primarily engaged in the business of import and manufacture of light products.

4. Petitioner had imported smart plugs vide Bill of Entry No.8311310 dated 28.07.2020. It is stated that the imported smart plugs are used for extension socket purposes and since the same does not generate any wi-fi or bluetooth signal, petitioner claims that no import licence from the Wireless Procurement Cell, Department of Information and Technology, Government of India was required. Petitioner also got the product tested to certify that the technical features of the product did not fall under licensing requirement.

5. Notwithstanding the above, the apprising officers raised objection regarding requirement of import licence with respect to the imported products. Petitioner agreed for a first check examination of the same which was carried out in the presence of the authorised representative of the petitioner. During the said examination neither any objection was raised nor any inconsistency was found. Despite the above, at the insistance of officers serving in the office of Joint Commissioner of Customs, Nhava Sheva-V i.e. respondent No.3, petitioner furnished three declarations dated 02.09.2020 certifying the truth and veracity of all the declarations. Thereafter office of respondent No.3 vide letter dated 14.09.2020 scheduled a personal hearing on 18.09.2020 through video conferencing which was attended by the authorised representative of the petitioner. The authorised representative told respondent No.3 that all the three declarations were already provided to the apprising officers and therefore requested that the imported goods be released forthwith. However, no recording of personal hearing was communicated to the petitioner.

6. Thereafter respondent No.3 passed the impunged order in original dated 23.09.2020 rejecting the unit price of the goods as declared by the petitioner and directed that the same be redetermined at USD 13.66097 (C/F value) and USD 22.02365 (C/F value). Accordingly, petitioner was directed to pay the resultant differential duty along with applicable interest under section 28AA of the Customs Act, 1962 (briefly “the Customs Act” hereinafter). As a consequence, respondent No.3 confiscated the imported goods under section 111(m) of the Customs Act but gave an option to the petitioner to redeem the confiscated goods upon payment of redemption fine of Rs.4,00,000.00 under section 125 of the Customs Act, further imposing penalty of Rs.1,90,000.00 under section 112(a) of the Customs Act.

7. Aggrieved by the aforesaid order in original dated 23.09.2020 and assailing the same primarily on the ground that it was passed in gross violation of the principles of natural justice, the present writ petition came to be filed.

8. By order dated 06.10.2020, this Court had issued notice. On the next date i.e. on 29.10.2020, liberty was granted to the petitioner to amend the prayer portion of the writ petition and also to file interim application for release of the imported goods.

9. Thereafter petitioner had carried out the amendments in the writ petition including amendment in the prayer portion which reads as under :-

“iii. direct the Respondents itself, its officers, subordinates, servants and agents to release the goods imported vide Bill of Entry No.8311310 dated 28.07.2020 subject to the Applicant furnishing a Bank Guarantee of th