2007 (9) TMI 78 - HC - Customs

Court orders release of Mulberry Raw Silk at petitioner's valuation, with conditions for customs duty and bond.

The court directed the release of the imported Mulberry Raw Silk at the petitioner's valuation of US $17.00 per kilogram for 3A grade, with the petitioner ... Release of imported goods on furnishing bond - valuation dispute in import duty assessment - provisional payment of assessed customs duty - continuation of customs investigation and assessment - obligation to cooperate in assessment proceedingsRelease of imported goods on furnishing bond - provisional payment of assessed customs duty - valuation dispute in import duty assessment - Direction to release 9345.910 kilograms of 3A grade Mulberry Raw Silk subject to payment at the declared value and furnishing of a personal bond for the differential duty - HELD THAT: - The Court directed immediate release of the imported Mulberry Raw Silk upon compliance with two financial conditions: (a) payment by the petitioner of customs duty calculated at the petitioner's declared value of US$17.00 per kilogram; and (b) furnishing a personal bond for the differential customs duty at US$5.00 per kilogram. The order implements a provisional arrangement to allow release while the underlying valuation dispute remains unresolved and provides security for any eventual differential liability. Compliance was ordered to be effected within 15 days of receipt of the order, and release to follow within 15 days thereafter. [Paras 5]Imported consignments ordered released on payment at US$17.00/kg and on furnishing a personal bond for US$5.00/kg differential, subject to the conditions stated.Continuation of customs investigation and assessment - obligation to cooperate in assessment proceedings - Permission for respondents to proceed with investigation/assessment and the petitioner's obligation to cooperate therewith - HELD THAT: - Concomitantly with the provisional release, the Court permitted the respondents to continue with their investigation and assessment into the correct valuation of the imported material. The petitioner was directed to cooperate in such proceedings. The order thus preserves the respondents' right to adjudicate the valuation question on merits while providing the petitioner temporary relief subject to the stated conditions. [Paras 5]Respondents may proceed with investigation/assessment and the petitioner must cooperate with those proceedings.Final Conclusion: The writ petition is allowed insofar as the Court ordered provisional release of the specified import upon payment at the declared value and furnishing of a bond for the differential; the respondents are permitted to continue their valuation investigation and assessment while the petitioner must cooperate; no costs. Issues: Dispute over customs duty payment for imported Mulberry Raw Silk.In this judgment, the petitioner, a regular importer of Raw Silk, imported Mulberry Raw Silk from China at different rates per kilogram for different grades. The dispute arose when the respondents questioned the valuation of the Mulberry Raw Silk at US $17.00 per kilogram for 3A grade, as they noted contemporaneous imports valued at US $22 per kilogram. The respondents asked the petitioner to justify the lower valuation. The learned counsel for the respondents referred to similar cases and suggested releasing the imported materials with conditions. The court directed the release of the imported Mulberry Raw Silk of 9345.910 kilograms of 3A grade at the petitioner's valuation of US $17.00 per kilogram. The petitioner was required to pay the differential customs duty at US $5 per kilogram and provide a personal bond for the remaining amount. The petitioner was given 15 days to comply with these conditions. The court also ordered the petitioner to cooperate with any investigation or assessment by the respondents. Once the petitioner fulfilled the conditions, the respondents were directed to release the imported materials within 15 days. The writ petition was thus disposed of with no costs incurred, and a related miscellaneous petition was closed as well.