2015 (3) TMI 69 - AT - Customs

Amendment of Import General Manifest Upheld in Appeal

The appeal challenged Order-in-Appeal No. 1717 (Import Noting)/2014, seeking to amend the Import General Manifest (IGM) by substituting the importer's ... Rejection of request of substitution of name - abandoned goods - appellant failed to clear the goods within the time period stipulated - Held that:- Section 149 of the Customs Act provides for amendment of IGM as per the discretion of the proper officer after the IGM has been presented. In the present case, the original importer's name was indicated in the IGM as M/s Jai Durga Trading Co. However, the said importer did not clear the goods nor did he pay duty within thirty days from the date of unloading of the goods as stipulated under Section 48 of the Customs Act, 1962. This clearly shows that the appellant, M/s. Jai Durge Trading Co., was not interested in clearance of the goods and had abandoned their claim of the goods. Therefore, the amendment of the IGM sought by the shipping agent for substituting the name of the importer with M/s. BGH Exim Ltd. cannot be faulted at all. An identical matter came up for consideration before the Hon'ble Delhi High Court in the case of Agrim Sampada Ltd. & Another vs. UOI in [2004 (1) TMI 86 - HIGH COURT OF DELHI]. The Hon'ble High Court held that 'when an importer fails to pay for the goods and abandons/refuses them, the supplier continues to remain the owner of the goods and that he can transfer the document of title to another person and thereafter person will be entitled to clear the goods.' The ratio of the said decision would apply squarely to the facts of the present case. - No merit in the appeal - Decided against assessee. Issues:- Appeal against Order-in-Appeal No. 1717 (Import Noting)/2014- Amendment of Import General Manifest (IGM) from M/s. Jai Durge Trading CO. to M/s. BGH Exim Ltd.- Discretion of proper officer under Section 149 of the Customs Act, 1962- Abandonment of goods by original importerAnalysis:The appeal in question challenges Order-in-Appeal No. 1717 (Import Noting)/2014 passed by the Commissioner of Customs (Appeals), Nhava Sheva. The lower appellate authority dismissed the appeal of M/s. Jai Durge Trading CO., New Delhi, regarding the amendment of the Import General Manifest (IGM) filed by the shipping agent, M/s. Samudra Shipping Line (India) Pvt. Ltd. The amendment sought was the substitution of the importer's name from M/s. Jai Durge Trading CO. to M/s. BGH Exim Ltd. The appellant failed to clear the goods within the stipulated time, leading to the request for amendment. The central issue revolves around whether the amendment to the IGM should have been permitted by the lower authorities.The appellant contended that the amendment prejudicially affects their claim on the imported goods since their name was sought to be replaced with that of another entity. On the other hand, the Revenue argued that as per Section 149 of the Customs Act, 1962, the proper officer has the discretion to authorize amendments to documents presented to Customs. In this case, the original importer failed to clear the goods within the specified period, indicating abandonment, which justified the amendment to substitute the importer's name. The Assistant Commissioner allowed the amendment based on valid reasons, including heavy detention/demurrage charges on the goods and the willingness of the new entity to clear them. The Revenue's stance was supported by legal provisions and precedents.The presiding judge, after considering both sides' submissions, referred to Section 149 of the Customs Act, which empowers the proper officer to allow amendments to the IGM. The judge noted that the original importer, M/s. Jai Durge Trading CO., had abandoned their claim on the goods by failing to clear them within the specified period. Citing a relevant judgment from the Hon'ble Delhi High Court, the judge emphasized that in cases where an importer abandons goods, the supplier retains ownership and can transfer the title to another party for clearance. Applying this principle to the present case, the judge found no merit in the appeal and consequently dismissed it, upholding the lower appellate authority's decision.In conclusion, the judgment reaffirms the discretion of the proper officer under Section 149 of the Customs Act, 1962, to authorize amendments to documents like the IGM. It underscores the consequences of abandonment by the original importer and the subsequent rights of other entities to clear the goods. The decision aligns with legal provisions and judicial precedents, emphasizing the importance of timely compliance and the proper exercise of discretion by Customs authorities.