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2010 Supreme(Mad) 5105
High Court of Judicature at Madras
THE HONOURABLE MRS. JUSTICE CHITRA VENKATARAMAN
Container Shipping Lines Association (CSLA) (India), Chennai & Others
Versus
Union of India, Ministry of Finance Nirman Bhavan, New Delhi & Others
Writ Petition Nos. 8823 to 8825 & 15772 of 2009 & Connected Miscellaneous Petitions
Decided On : 30-11-2010
For the Petitioners:A.L. Somayaji, Senior Advocate for M/s. Narmada Sampath, Advocate.
For the Respondents:R1 to R4 - Ravichandra Babu, Senior Panel Counsel, R5 to R6 - Yashod Vardhan, S.C. for M/s. Satish Sundar, Habibullah Badsha, S.C. for Ilias Ali, Advocate.
The IGM is not an immutable document and can be amended by the consignee or the Customs Authorities, even after the auto-approval for movement of the imported containers from the Port to the CFS is granted. The amendment of the CFS in the IGM does not amount to an amendment of the IGM under Section 30(3) of the Customs Act, 1962, which would attract penal consequences.
Headnote:
The Customs Act, 1962 and other laws of the country regulate the entry/exit of all goods from the country by way of import or export. The Customs Act, 1962 lays down the procedure by which the goods can enter the country and get cleared for home consumption after fulfilling the requirements of law, as regards payment of the applicable import duties.
Fact of the Case:
The petitioners, Container Shipping Lines Association and a Shipping Company, challenged the public notices issued by the Customs Department, which allowed the consignee or the Customs Authorities to amend the Import General Manifest (IGM) to change the Container Freight Station (CFS) to which the imported goods were to be moved after unloading from the vessel. The petitioners contended that the public notices were without legal sanctity, violated their contractual obligations, and exposed them to penalty and prosecution.
Finding of the Court:
The Court held that the public notices issued by the Customs Department were valid and did not violate the provisions of the Customs Act, 1962. The Court observed that the IGM was not an immutable document and could be amended by the consignee or the Customs Authorities, even after the auto-approval for movement of the imported containers from the Port to the CFS was granted. The Court further held that the amendment of the CFS in the IGM did not amount to an amendment of the IGM under Section 30(3) of the Customs Act, 1962, which would attract penal consequences.
Issues: 1. Whether the public notices issued by the Customs Department allowing the amendment of the IGM to change the CFS were valid and did not violate the provisions of the Customs Act, 1962? 2. Whether the amendment of the CFS in the IGM amounted to an amendment of the IGM under Section 30(3) of the Customs Act, 1962, which would attract penal consequences?
Ratio Decidendi: 1. The Court held that the public notices issued by the Customs Department were valid and did not violate the provisions of the Customs Act, 1962. The Court observed that the IGM was not an immutable document and could be amended by the consignee or the Customs Authorities, even after the auto-approval for movement of the imported containers from the Port to the CFS was granted. The Court further held that the amendment of the CFS in the IGM did not amount to an amendment of the IGM under Section 30(3) of the Customs Act, 1962, which would attract penal consequences. 2. The Court held that the amendment of the CFS in the IGM did not amount to an amendment of the IGM under Section 30(3) of the Customs Act, 1962, which would attract penal consequences.
Final Decision: The Court dismissed all the Writ Petitions filed by the petitioners.
1. The Customs Act 1962 and other laws of the country regulate the entry/exit of all goods from the country by way of import or export. The Customs Act, 1962 lays down the procedure by which the goods can enter the country and get cleared for home consumption after fulfilling the requirements of law, as regards payment of the applicable import duties.
2. Under the Customs Act, 1962, goods entering into Indian territory become imported goods, chargeable to duty under Section 12 of the Customs Act, unless they are exempt from payment of duty under any specific provision. Goods are allowed for import or export at notified places only. Custodians are appointed under Section 45 of the Customs Act for safe storage of goods till they are cleared for home consumption or for warehousing. Chapter III of the Customs Act (Sections 7 to 10) deals with appointment of Customs ports, airports, warehousing stations etc. Section 7 of the Customs Act empowers the Central Board of Excise and Customs (hereinafter referred to as the Board) to appoint Customs Ports, Customs Airports, places for Inland Container Depots, Coastal Ports, etc. Section 7(aa) of the Customs Act authorises the Board to appoint Inland Container Depots (ICD) for unloading of imported goods and loading of export goods. Under these provisions, ICDs have been appointed at various places. Under Sub Section (b), the Board is empowered to appoint places which shall be land customs stations, for the clearances of goods imported or to be exported and under sub section (c), the routes by which alone goods or any class of goods specified in the notification may pass by land or inland water into or out of India or to or from any land customs station from or to any land frontier.
3. Section 8 of the Customs Act authorises the Commissioner to (a) approve proper places in any customs port or customs airport or coastal port for the loading and unloading of goods or for any class of goods and (b) specify the limits of customs area. Sub Section (11) of Section 2 of the Customs Act defines "customs area" as the area of a customs station and includes any area in which imported goods or export goods are ordinarily kept before clearance by Customs Authorities. Section 2(12) of the Customs Act defines "customs port" as any port appointed under clause (a) of section 7 to be a customs port and includes a place appointed under clause (aa) of that section to be an inland container depot (ICD). Section 2(13) defines "customs station" as any customs port, customs airport or land customs station. CFSs are specified as customs area under Clause (b) of Section 8. In terms of the aforesaid provisions, ICDs and CFS are appointed at various places and they function like dry ports. They offer all services for customs clearance like any other port facilities for handling temporary shortage of imported/export goods and empty containers. In Circular 69/99 dated 06.10.1999, the Central Board of Excise and Customs has given the detailed procedure on the transporting of imported goods to the CFS.
4. Chapter VI of the Customs Act (Sections 29 to 43) contains provisions relating to conveyances carrying imported or export goods. Section 33 of the Customs Act specifies that "except with the permission of the proper officer, no imported goods shall be unloaded, and no export goods shall be loaded, at any place other than a place approved under clause (a) of section 8 for the unloading or loading of such goods." Section 34 of the Customs Act prescribes that "imported goods shall not be unloaded from, and export goods shall not be loaded on, any conveyance except under the supervision of the proper officer." Section 32 of the Customs Act specifies that "no imported goods required to be mentioned under the regulations in an import manifest or import report shall, except with the permission of the proper officer, be unloaded at any customs station unless they are specified in such manifest or report for being un
