2016 (4) TMI 1169 - HC - Customs

Customs Detention Procedures Clarified: Rulings on Goods Release, Demurrage Claims, Inspection Compliance

M/s Shri Lakshmi Steels Versus UOI & Ors.

The court addressed various issues related to the detention of goods by Custom Authorities, including suspected misclassification, claim of demurrage and ... Validity of detention order - immediate release of undisputed consignments - one sample each of the disputed consignments be taken by the Custom Authorities in the presence of the officer/representative of the DRI as well as of the petitioners, under their respective signatures, which shall be kept sealed in the custody of DRI without prejudice to the right of the Custom Authorities for acceptance of testing report dated 28.01.2016 - The petitioners undertake to join the inspection regarding verification of thickness of the imported material - matter on remand. Issues:1. Detention of goods by Custom Authorities for suspected misclassification.2. Claim of demurrage and other Port charges by Mumbai Port Trust.3. Release of undisputed consignments.4. De-stuffing disputed consignments for inspection.5. Sampling of disputed consignments for testing.6. Verification of imported material thickness.7. Scheduled inspection and examination of goods.8. Filing of written statements by respondents.9. Next hearing date.Analysis:Issue 1: Detention of goods by Custom AuthoritiesThe judgment addresses the detention of goods by Custom Authorities due to suspected misclassification. The petitioner argues that the period during which the goods were held should be considered as detention, preventing them from accepting delivery. The court directs the Custom Authorities to explain why this period was not declared as detention and why seizure memos were issued after provisional assessment.Issue 2: Claim of demurrage and other Port chargesThe Mumbai Port Trust asserts its right to claim demurrage and other Port charges for goods lying in the Port Area, regardless of the Custom Authorities' actions. The court instructs the Custom Authorities to make decisions regarding the detention order while acknowledging the Port Authority's claims without prejudice to the petitioner's contentions.Issue 3: Release of undisputed consignmentsThe judgment mandates the release of undisputed consignments if there are no pending claims, emphasizing prompt action by the Custom Authorities in this regard.Issue 4: De-stuffing disputed consignments for inspectionThe court directs the Custom Authorities to de-stuff the disputed consignments within a week, with advance intimation to the petitioners to facilitate necessary arrangements.Issue 5: Sampling of disputed consignments for testingOne sample from each disputed consignment is to be taken by the Custom Authorities in the presence of relevant parties for testing, with the samples sealed in the custody of DRI.Issue 6: Verification of imported material thicknessThe petitioners undertake to participate in the inspection for verifying the thickness of imported material on specific dates, ensuring compliance with the examination requirements.Issue 7: Scheduled inspection and examination of goodsScheduled inspections and examinations of goods are set for specific dates, requiring the petitioners' presence for verification and examination purposes.Issue 8: Filing of written statements by respondentsWritten statements filed by respondents are acknowledged and taken on record, with copies provided to opposing counsel for information.Issue 9: Next hearing dateThe case is scheduled to come up for the next hearing on a specified date, with orders issued for providing copies of the judgment to counsel for compliance and record-keeping purposes.