2011 (2) TMI 222 - SC - Customs

Supreme Court rulings on imported scrap release, bank guarantees, and demurrage charges

The Supreme Court heard appeals against the High Court's judgments regarding the provisional release of imported Heavy Melting Scrap consignments. The ... Seized goods - Release of the seized consignments in 38 containers - The High Court has directed the Directorate of Revenue Intelligence to allow provisional release of consignments of Heavy Melting Scrap subject to condition to furnish bank guarantees to the tune of 30% of the value of the goods - after the release of the goods on the basis of provisional assessment, there has been no final adjudication of the Bills of Entry filed for clearance of the goods for home consumption - The respondents-importers shall file their respective replies to the show cause notices and keep alive all the bank guarantees furnished by them in terms of the impugned judgments/orders till the order of adjudication is passed - The Revenue shall not enforce the bonds or encash the Bank Guarantee till the order of adjudication is served on the respondents - the payment of demurrage/storage charges shall be determined by the authorities concerned after the final adjudication - notice issued by the High Court to an officer of the Revenue Department may be discharged - have not expressed any opinion on the conduct of officer concerned - Hence, the appeals stand disposed Issues involved:- Appeals against final judgments and orders dated 1st May, 2002 and 2nd May, 2002 by the High Court of Punjab & Haryana regarding the provisional release of consignments of Heavy Melting Scrap.- Lack of final adjudication of Bills of Entry for clearance of goods for home consumption.- Directions for the importers to reply to show cause notices and keep bank guarantees alive.- Enforcement of bonds and encashment of Bank Guarantee by Revenue.- Determination of demurrage/storage charges post final adjudication.- Opportunity of hearing to be granted to the respondents before final orders.- Discharge of notice issued by the High Court to an officer of the Revenue Department.Analysis:1. The Supreme Court heard appeals against the High Court's judgments directing the provisional release of imported Heavy Melting Scrap consignments. The released material was to be mutilated and put into furnaces at an industrial unit, with the importers executing bonds and providing bank guarantees. The consignments were released on complying with conditions, and bank guarantees remain active.2. As there was no final adjudication of Bills of Entry for goods clearance, the Court decided it was in the interest of both revenue and importers to finalize adjudication for all import consignments with pending show cause notices. The importers were directed to reply to show cause notices, keeping bank guarantees active until adjudication, and Revenue was barred from enforcing bonds or encashing Bank Guarantee until adjudication.3. The issue of demurrage/storage charges post final adjudication was left to the concerned authorities, with a directive for granting the respondents an adequate opportunity of hearing before final orders are made. A request was made to the High Court to expedite the disposal of pending writ petitions related to the release of consignments.4. The Court refrained from commenting on the conduct of the Revenue Department officer due to not addressing the merits of the cases. The appeals were disposed of with no costs, emphasizing the need for expeditious resolution of pending matters related to the release of consignments.