IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
N.V. ANJARIA, NIRAL R. MEHTA, JJ.
Alphabet International - Petitioner
Versus
Union of India - Respondent
R/Special Civil Application No. 2094 of 2023
Decided On : 23-03-2023
Customs Act - Provisional Release of Goods - Section 110, 110A, 112
Fact of the Case:
The petitioner sought provisional release of perishable goods imported through two Bill of entries. The goods were seized by the customs authorities under section 110 of the Customs Act, 1962, alleging misuse of Phytosanitary certificates.
Finding of the Court:
The court found that the goods were fit for human consumption and that the adjudicatory process should proceed swiftly. It considered the decision in M/s. A and A Shipping Services and granted the prayer for provisional release, leaving the conditions to the competent authority.
Issues: Seizure of perishable goods, provisional release under section 110A, compliance with conditions for release
Ratio Decidendi: The court emphasized the need for swift adjudication of perishable goods and considered the decision in M/s. A and A Shipping Services as a guiding precedent for granting provisional release.
Final Decision: The court allowed the provisional release of the goods, leaving the determination of conditions to the competent authority, and directed the adjudicatory process to start and be completed expeditiously.
ORDER :
N.V. Anjaria, J.
In the facts and circumstances of the case and having regard to the request and consent of the learned advocates for the parties, this Special Civil Application was taken up for final consideration.
1.1 Rule returnable forthwith. Learned advocate Mr. Priyank Lodha waives service of Rule on behalf of respondents.
1.2 Heard learned advocate Mr. Rohan Lavkumar for Nanavati Associates for the petitioner.
2. It is for seeking the following prayers as advanced in the memorandum petition that the petitioner has filed this Special Civil Application under Article 226 of the Constitution,
(b) to quash and set aside the seizure memo dated 16.01.2023 issued by respondent No.4
(c) to direct the respondent No.2 and 3 their officers, employees not to initiate any actions for disposal of the goods imported through the two aforementioned bill of entries filed with office of Respondent No. 3
(d) to allow clearance of goods imported through the two aforementioned bill of entries filed with the office of Respondent No.3 with such terms and conditions as deemed fit and proper by the court.”
2.1 At the time of hearing, learned advocate for the petitioner pressed the only prayer (d) above, whereby it is prayed to release the goods through the said two bills of entries upon proper terms and conditions. In other words, the prayer of the petitioner is to permit provisional release of the goods.
3. Noticing the facts, the petitioner, a proprietorship concern, engaged in the business of import, imported the consignments of fresh Kiwi Fruits from UAE through M/s. Anchor Global Foodstuff Trading LIC, which were originally exported from Chile. The goods were imported under Bill of Entry No. 3989898 dated 31.122022 and Bill of Entry No. 4026695 dated 4.1.2023. The petitioner stated that it filed the necessary documents required for clearance of goods for home consumption, which are detailed in the petition.
3.1 It appears that the respondent custom authorities proceeded to exercise their powers under section 110 of the Customs Act, 1962, which deals with seizure of the goods, documents and things. As per seizure memo dated 16.1.2023, which refers to only one Bill of Entry No. 3989898 dated 31.12.2022 out of the above two, it was stated therein that amongst the documents produced, the petitioner submitted Phytosanitary certificates issued by the Chile on 12.1.2023. They were Phytosanitary Certificate No. 2178019, 2171104, 2178021 and 2166630.
3.2 It was mentioned in the seizure memo that on perusal of the documents it was found by the authorities that the very Phytosanitary Certificates were used and submitted by other importers in relation to their consignments. The names of those co-signers were also mentioned in the seizure memo which inter alia included A & A Shipping Services.
3.3 The Preventive Officer, Customs House, Mundra Port-respondent No.3 herein seized the goods 'fresh Kiwis' on the aforesaid allegation and ground. It is to be recollected that while the consignments comprised of two bills, in respect of entry No. 4026695 dated 4.1.2023, the seizure memo is silent. Be as it may.
4. Pressing the only prayer advanced in the petition as above, learned advocate for the petitioner submitted that the goods are of perishable nature, which are lying with the authorities since the date of seizure, that is 16.1.2023 and since they are perishable in nature, they are on the verge of perishment to result into serious financial loss and also prejudice to the petitioner who has already requested the authorities to clear the goods. It was submitted that the petitioner is ready to comply with the conditions which may be imposed for the purpose of provisional release. It was next submitted that section 110A of
The court emphasized the importance of swift adjudication for perishable goods and considered the decision in M/s. A and A Shipping Services as a guiding precedent for granting provisional release.
The necessity for swift adjudication and the provision for provisional release of goods under Section 110A of the Customs Act, 1962.
Provisional release under Customs Act s.110A requires case-specific material for bank guarantee; general undervaluation intelligence against others insufficient post-assessment and duty payment, dire....
Provisional release of seized goods must comply with statutory provisions, overriding any circular prohibiting such release, which is deemed void if it conflicts with the law.
The right under Section 110(2) of the Customs Act for unconditional release of goods is absolute and cannot be curtailed or prevented by the Department.
The main legal point established in the judgment is the binding effect of the Authority for Advance Rulings' decision and the court's direction for fresh testing and release of the goods upon submiss....
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