Court grants interim relief, deems Ministry's Office Memorandum invalid, directs import clearance for old tires.

The court granted interim relief to the applicant, finding the Ministry's Office Memorandum unenforceable in law. The court directed the respondents to allow the assessment and clearance of imported old and used tyres under specified conditions, emphasizing their reusability and proper sale to prevent demurrage-related losses. The ruling favored the applicant, deeming the Office Memorandum invalid and insufficient to reject the import clearance.

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Issues Involved:
1. Provisional clearance of import of old and used tyres.
2. Classification and assessment of imported tyres under the Customs Tariff Act.
3. Applicability of the Ministry of Environment and Forests' Office Memorandum dated 24.11.2014.
4. Compliance with the Hazardous Waste (Management, Handling and Transboundary Movement) Rules, 2008.
5. Validity and enforceability of the Office Memorandum.

Detailed Analysis:

1. Provisional Clearance of Import of Old and Used Tyres:
The applicant sought a direction for the provisional clearance of imported old and used tyres under Bills of Entry No.17 and 18 of 2015. The customs authorities rejected the assessment based on an Office Memorandum from the Ministry of Environment and Forests, which categorized old and used tyres for direct use as "prohibited goods."

2. Classification and Assessment of Imported Tyres under the Customs Tariff Act:
The applicant argued that the consignment of old and used tyres falls under Chapter 40 of the Customs Tariff Act, specifically under entry 4012 20 90, which pertains to retreaded or used pneumatic tyres and is freely importable. The Customs Department, however, classified them under restricted entries 4012 2010 or 4012 2020, requiring a licence for import, failing which the import would be subject to fines.

3. Applicability of the Ministry of Environment and Forests' Office Memorandum Dated 24.11.2014:
The applicant contended that the Office Memorandum, being administrative in nature, cannot override the EXIM policy, which permits the import of used pneumatic tyres under restricted or free categories. The Ministry's memorandum was challenged as not being a decision made following any prescribed legal procedure.

4. Compliance with the Hazardous Waste (Management, Handling and Transboundary Movement) Rules, 2008:
The applicant argued that the import of used tyres is permissible under Rule 13(2) of the Hazardous Waste Rules. Certification from the Customs Department's appointed Surveyor and the Gujarat Pollution Control Board confirmed that the tyres were in good condition and not hazardous. The Ministry of Environment and Forests' stance that the tyres fall under hazardous waste (entry B-3140 of Schedule III, Part B) requiring prior permission was disputed, asserting a misreading of the rules distinguishing used pneumatic tyres from waste tyres.

5. Validity and Enforceability of the Office Memorandum:
The court found that the Office Memorandum did not correlate to any power conferred by the Environment (Protection) Act or the Hazardous Waste Rules. Rule 23 and Schedule VII of the rules, which outline duties of various authorities, do not empower the Ministry to specify additional hazardous waste categories. Consequently, the memorandum was deemed administrative and unenforceable in law, and thus, could not be used to refuse processing the applicant's bills of entry.

Conclusion:
The court concluded that the applicant made a prima facie case for interim relief. The balance of convenience favored the applicant, and irreparable injury was evident due to severe losses from demurrage. The court directed the respondents to permit the assessment and clearance of the imported goods under specified conditions, ensuring the tyres were reusable and sold accordingly. The rule was made absolute with no order as to costs, and direct service was permitted.

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