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IN THE HIGH COURT OF JUDICATURE AT MADRAS
ANITA SUMANTH, J.
M/s. Global Oil & Company, Rep. by its Partner Nilesh Dwarkadas Dhingra & Others - Appellant
Versus
Assistant Commissioner of Customs - Imports Group I, Chennai – II, Commissionerate, Chennai & Others - Respondent
W.P. Nos. 11019, 11220, 11228 & 11401 of 2022 & WMP. Nos. 13727, 13729 & 13732 of 2022
Decided On : 08-06-2022
Writ Petitions - Re-export of goods - ITC (HS) code 21069030 - Regulations 6(1)(I) of the Handling of Cargo in Customs Areas Regulations, 2009 r/w Regulation 10(1)(I) of the Sea Cargo Manifest Transshipment Regulations, 2018
Fact of the Case:
The petitioners imported betelnut products which were detained by the respondents for investigation on the classification of the goods and assessment of duty. The petitioners requested permission to re-export the perishable goods without adjudication fine and penalty.
Finding of the Court:
The court permitted the petitioners to appear before the respondents for disposal of their representations and directed the respondents to take a view on the request within four weeks. The court denied the prayer for a direction to re-export the consignment, stating that it involves determination of various facts by the authorities.
Issues: Detention of goods, request for re-export, cooperation with investigation/adjudication proceedings
Ratio Decidendi: The court emphasized the need for cooperation with the investigation/adjudication proceedings and permitted the petitioners to appear before the respondents for disposal of their representations. The court also highlighted that the determination of re-export involves various facts to be assessed by the authorities.
Final Decision: The writ petitions were disposed as above with no costs.
JUDGMENT
(Common Prayer: Writ Petitions filed under Article 226 of the Constitution of India, to issue aWrit of Mandamus, directing the respondents to permit the petitioners to re-export the goods namely 'Unflavoured Supari' (Betelnut Product) classifiable under ITC (HS) code 21069030 covered under Bill of Entry No.7666984 dated 27.02.2022 consisting of 04x40' Containers i.e.,2304821 F GESU4362234; 2304821 F GESU5641022; 2304821 F TIDU5210074 and 2304821 F TLHU8177156 in W.P.No.11019 of 2022, Bill of Entry No.7635792 dated 24.02.2022 consisting of 10x20' Containers i.e.,2304645 F AMFU3238906; 2304645 F GESU3747041; 2304645 F MXCU0009601; 2304645 F MXCU0012499; 2304645 F MXCU0015137; 2304645 F MXCU0018542; 2304645 F MXCU0061180; 2304645 F NLLU9024030; 2304645 F TRLU2578090; 2304645 F UXXU2258353 in W.P.No.11220 of 2022, Bill of lading No. BLPLRGN2200371 consisting of 6 X 40' HC containers i.e. 2304764 F DRYU9722537; 2304764 F GIPU5027643; 2304764 F IALU4581517; 2304764 F TEMU6682351; 2304764 F TGHU9211779; 2304764 F WWWU9607855, Bill of lading No. BLPLRGN2200372 consisting of 4 X 40' HC i.e. 2304764 F TCNU2398624; 2304764 F TEMU6675861; 2304764 F TGHU6947560; 2304764 F TGHU9564457; Bill of lading No.BLPLRGN2200373 consisting of 3 X 40' HC, i.e., RFCU4040727-40HC/BLPL272563; TCNU2610559-40HC/BLPL272564 and TCNU2535645-40HC/BLPL273565, Bill of lading No.BLPLRGN2200374 consisting of 3 X 40' HC, i.e.,BLZU4170117-40HC/BLPL273562; TGHU9127251-40HC/BLPL273561; IALU4553259-40HC/BLPL273566 in W.P.No.11228 of 2022, Bill of Entry No.7148028 dated 19.01.2022 consisting of 03 x 40' Containers i.e.,TCNU2536699-40HC/BLPL2591D4/374 Bags, TGHU9806885-400HC/BLPL259103/373 Bags, TEMU6685670-40HC/BLPL259105/373 Bags in W.P.No.11401 of 2022 within a stipulated time considering the perishable nature of the goods that were detained / seized by the office of the respondents under Mahazar and direct the respondents to issue a 'Detention Certificate' for waiver of demurrage and container detention charges in terms of Regulations 6(1)(I) of the Handling of Cargo in Customs Areas Regulations, 2009 r/w Regulation 10(1)(I) of the Sea Cargo Manifest Transshipment Regulations, 2018.)
Common Order
1. Heard Mr.J.Shankarraman, learned counsel for the petitioners and Mr.V.Sundareswaran, learned Senior Panel Counsel for the respondents.
2. WMP.Nos.13727, 13729 & 13732 of 2022 are ordered in light of there being no objection by the learned counsel for the petitioner.
3. The petitioners have imported a consignment of betelnut from entities based in Indonesia and Myanmar. However, the goods have been detained and, according to the learned Senior Panel Counsel for the respondents, investigation is ongoing in regard to the classification of the goods and assessment of duty. The aspect of whether the goods are prohibited goods is also under investigation.
4. While this is so, the petitioners appear to have moved representations before the respondents as early as on 01.04.2022, 24.03.2022, 24.03.2022 & 30.03.2022 requesting that they may be permitted to re-export the consignment sans adjudication fine and penalty. The petitioners represent that the goods are perishable in nature and in such an event it would constitute a national waste.
5. Admittedly, these representations have been received by R1 on 01.04.2022 (seal affixed), and are pending till date. Learned Senior Panel Counsel would point out that there have been several attempts made to pursue the investigation/adjudication proceedings but there has been no co-operation on the part of the petitioners.
6. It is made clear that the petitioner will cooperate with the respondents in respect of the pending proceedings and to notices, if any, received from the respondents. In any event, for the purpose of disposal of the representations dated 01.04.2022, 24.03.2022, 24.03.2022 & 30.03.2022, the petitioners are permitted to appear before R1 on Thursday, the 16th of June, 2022 at 10.30 a.m.
7. R1 will take a view in regard to the r
Cooperation with investigation/adjudication proceedings and determination of re-export involving various facts to be assessed by the authorities
The central legal point established in the judgment is the authority of the appellants to permit re-export of goods and impose charges, while considering the nature of the goods and the option to avo....
The central legal point established in the judgment is the court's emphasis on the prompt exercise of discretion by the authority, particularly in the case of perishable goods, and the directive to d....
Prompt exercise of discretion by the authority, particularly in the case of perishable goods, and the spirit and intention of provisional clearance/assessment in case of classification disputes.
Prompt exercise of discretion in cases of perishable goods and the allowance of provisional clearance/assessment in cases of classification disputes to prevent congestion at ports and warehouses.
Customs goods under seizure for over a year may be permitted for re-export on bond and bank guarantee in the interest of justice.
Seized goods awaiting adjudication may be re-exported on furnishing bond and guarantee.
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