IN THE HIGH COURT OF DELHI AT NEW DELHI
SANJIV KHANNA, R.V. EASWAR, JJ.
M/S WORLDWIDE LOGISTICS SURVEY AND INSPECTION GROUP AND AFFILIATES : Petitioner
versus
UNION OF INDIA & ORS : Respondent
W.P.(C) 1554/2012
Decided On : 22.03.2012
Alert Circular - Import of Metallic Scrap - Customs Act, 1962 - [2.32.1, 2.32.2, Customs Act, 1962] - The court discussed the provisions of paragraph 2.32.1 and 2.32.2 of the Customs Act, 1962, which prohibit the import of metallic waste or scrap containing hazardous, toxic waste, radioactive contaminated waste, and any type of arms, ammunition, mines, shells, or any other explosive material. The court emphasized the obligation and responsibility of the inspection certificate agency to certify that the consignment does not contain any prohibited materials. The court rejected the petitioner's contention that a distinction should be drawn between a casing and a shell, stating that no distinction should be made between used and unused material, and that liberal interpretation in such cases would be counterproductive.
Fact of the Case:
The petitioner, M/s Worldwide Logistics Survey and Inspection Group and Affiliates, filed a writ petition to quash an alert circular and an order passed by the Commissioner of Customs (Import), Nhava Sheva, regarding the import of metallic scrap.
Finding of the Court:
The court dismissed the writ petition, finding no merit in the petitioner's contentions.
Issues: The issues involved the interpretation of the provisions of the Customs Act, 1962, specifically paragraph 2.32.1 and 2.32.2, and the distinction between a casing and a shell in the context of import of metallic scrap.
Ratio Decidendi: The court held that the inspection certificate agency has an obligation to certify that the consignment does not contain any prohibited materials, and rejected the petitioner's contention that a distinction should be drawn between a casing and a shell.
Final Decision: The writ petition was dismissed by the court.
M/s Worldwide Logistics Survey and Inspection Group and Affiliates has filed the present writ petition for quashing impugned Alert Circular No.01/2012-JNCH dated 16.01.2012 and order dated 5th March, 2012 passed by Commissioner of Customs (Import), Nhava Sheva.
2. The petitioner had earlier filed W.P.(C) 631/2012, which was disposed of by this Bench on 31st January, 2012. For the sake of completeness, we are reproducing the said order in entirety:-
“1. The petitioner World Wide Logistics Survey and Inspection Group and Affiliates is aggrieved by the alert circular dated 16.01.2012. In the circular it is mentioned that the petitioner had issued certificate / form of declaration / undertaking in respect of consignment which was imported into India vide bill of lading BAXSSS019014 dated 23.11.2011.
2. The petitioner had issued the pre-shipment inspection certificate in which it was declared as under:-
“Declaration/undertaking
1. The consignment does not contain any type of arms, ammunition, mines shells cartridges, or any other explosive material in any form, either used or otherwise and that the consignment was checked for radiation lever and it does not have radiation levels gamma and neutron) in excess of natural background.
Following are the values of :-
(i) Background radiation level (0.2uSv/h) at the place of examination.
(ii) Maximum radition lelvel on the scrap not more than (0.2usv/h) measured at 1 metre from the surface of the load uSv/h)
2. The import consignment is actually metallic scrap/seconds / defective as per the internationally accepted parameters for such a classification.
3. I/We hereby declare that the particulars and statements made in this certificate are true and correct and nothing has been concaled or held there from.”
3. On examination of the said consignment, it is stated in the circular that the following articles/goods were recovered:-
“Eight Cylindrical shaped, military green colour object open on one side and having marking as “Rocket 2.75 war-head with motor MK-66 MOD 4 Ammunition, incendiary UM – weight 174 pounds”
One object of the same appearance, but partially defaced by applying black paint.
17 object of the similarly appearance, but completely defaced by applying paint.
Other items of scrap mainly crush & cut cylinders.”
4. Thereafter, impugned circular records as under:-
“4. The said Inspection Agency has also declared that “the import consignment is actually metallic scrap/seconds/defective as per the internationally accepted parameters for such a classification and declared the particular and statement made in this certificate are true and correct and nothing has been concealed or held there from.
5. The plain reading shipment inspection certificate and examination report of the Customs JNCH (PANCHANAMA dated 15.12.2011) of the goods made it appears that the inspection Agency has not seen the goods and the certificate has been issued without carrying out any inspection of the subject goods.
6. The matter has been brought to the notice of DGFT for suitable action.
7. In the light of the above, all ports where clearance of scraps are undertaken, are hereby alerted regarding possible mis-declaration of the description of the goods for which the Inspection Certificates has been issued by the said designated agency. This is for information and necessary action at you end, as deemed fit.”
5. A careful examination of para 7 exposits that the port authorities have been alerted to be careful regarding possible mis-declaration of description when examining a consignment where pre-shipment inspection certification has been issued by the petitioner. This circular does not mean that the certificate issued by the petitioner can be discarded or have to be rejected.
6. Learned counsel for the petitioner has relied upon the order dated 24.01.2011 passed in the Writ Petition No.441/2011 titled World Wide Logistics Survey and Inspection Group and Affiliates Vs. UOI & Ors. He submits in the said
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