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 Court directed importers to reply to show cause notices, keep bank guarantees active, and deferred final adjudication of Bills of Entry. Bank guarantees were not to be enforced until adjudication. The issue of demurrage/storage charges post adjudication was left to authorities, with a directive for granting respondents a hearing. The Court refrained from commenting on the Revenue officer's conduct. The appeals were disposed of without costs, emphasizing the need for prompt resolution of pending matters.

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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.

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