2019 (2) TMI 464 - HC - Customs

Judgment Orders Release of Imported Goods Under Trade Agreement, Emphasizes Timely Clearance

M/s. Unique Spices Versus The Commissioner of Customs, The Assistant Commissioner of Customs (Imports)

M/s. Unique Spices Versus The Commissioner of Customs, The Assistant Commissioner of Customs (Imports) - 2019 (366) E.L.T. 83 (Mad.) Issues:1. Dispute over the classification and duty exemption of imported goods under the Indo-Sri Lanka Free Trade Agreement (ISFTA).2. Delay in the verification process of the imported goods' country of origin.3. Allegations of unreasonable delay causing prejudice to the importer.4. Interpretation of rules and instructions governing verification procedures for imported goods.5. Consideration of the impact of bureaucratic efficiency on ease of doing business and economic development.Analysis:Issue 1: The petitioner, an importer of Areca/Betal Nuts, imported goods from Sri Lanka under the ISFTA, claiming duty exemption. The respondents sought provisional assessment due to concerns over the origin of the goods based on a circular issued by the Directorate of Revenue Intelligence.Issue 2: The respondents initiated a verification process with Indian and Sri Lankan authorities to confirm the goods' origin. Delays in receiving responses led to prolonged detention of the goods, despite initial checks confirming compliance with the declared origin.Issue 3: The court criticized the authorities for the delay, emphasizing the perishable nature of the agricultural goods and the need for expedited clearance. The petitioner's entitlement to release under the ISFTA terms was highlighted, subject to verification outcomes.Issue 4: The judgment referenced detailed instructions on verification procedures, highlighting that authorities should not mechanically verify every case but act on doubts regarding document genuineness. The court noted the lack of evidence suggesting doubts in the petitioner's case, questioning the necessity of the extended verification process.Issue 5: The judgment underscored the importance of efficient bureaucratic processes in facilitating business and economic growth. Criticism was directed towards unnecessary delays impacting trade and the need for officials to act promptly within legal frameworks to support business activities.The court allowed the writ petitions, directing the immediate release of the goods while reserving the right for the authorities to take legal action if document authenticity issues arise. The judgment emphasized the need for timely and efficient administrative actions to support business operations and economic development.