2019 (3) TMI 625 - HC - Customs

Court Orders Release of Digital Print Machines, Emphasizes Legal Compliance

M/s. Skylark Office Machines Versus The Commissioner of Customs, The Joint/Addl Commissioner of Customs (Gr. 5) And The Assistant/Deputy Commissioner of Customs (Gr. 5)

The court granted the petitioners' request for Writs of Mandamus for the release of consignments of old Digital Multifunction Print & Copying ... Release of consignments - import of several units of old, used Digital Multifunction Print & Copying Machines - stand of the revenue is that the clearance of the consignment would be contingent upon the fulfilment of all conditions as laid down in the amended Foreign Trade Policy - section 110A of Customs Act - Held that:- Supreme Court in the matter of Commissioner of Customs Vs. Athul Automations Private Limited [2019 (1) TMI 1324 - SUPREME COURT OF INDIA]. The Full Bench of the Supreme Court was concerned with a challenge to an order of the Customs Excise and Service Tax Appellate Tribunal that had been in favor of the importer, such importer not having challenged the Foreign Trade Policy itself. The authorities are also at liberty to initiate proceedings for assessment and adjudication of the consignments in question, in terms of the applicable statutory provisions and in accordance with law. The goods are permitted to be released by imposing certain conditions - petition disposed off. Issues:Petitioners seeking Writs of Mandamus for clearance of consignments of old Digital Multifunction Print & Copying Machines; Dispute over compliance with Foreign Trade Policy (FTP) conditions; Authorities insisting on DGFT authorization for clearance; Previous legal battles and judgments favoring importers; Challenge to authorities' stance on hazardous waste classification; Pan India application of the issue; Legal implications of Supreme Court and High Court judgments on release conditions.Analysis:Issue 1: Writs of Mandamus for Consignment ClearanceThe petitioners in eleven Writ Petitions sought Writs of Mandamus for the assessment and release of consignments containing old Digital Multifunction Print & Copying Machines. The specific details of consignments varied in each petition, but the common thread was the request for clearance.Issue 2: Compliance with Foreign Trade Policy (FTP)Authorities insisted on compliance with FTP conditions, including the need for an authorization from the Directorate General of Foreign Trade (DGFT) for clearance of consignments. The petitioners argued that the goods did not fall under the restricted category as per the FTP, citing previous legal battles and judgments in their favor.Issue 3: DGFT Authorization RequirementThe authorities maintained that consignments could only be cleared upon production of the DGFT authorization, which the petitioners had not obtained. This requirement was a key point of contention, leading to the filing of Writ Petitions seeking clearance without the said authorization.Issue 4: Hazardous Waste ClassificationAuthorities raised concerns about the consignments being classified as hazardous waste, requiring special permissions for import. The petitioners challenged this classification, citing previous court orders that negated such claims and confirmed the importability of the goods.Issue 5: Pan India Application and Legal PrecedentsThe issue was not limited to a specific jurisdiction but had pan India implications. Legal battles, including Supreme Court and High Court judgments, were referenced to support the petitioners' stance on consignment release conditions and the need for compliance with FTP provisions.Issue 6: Release Conditions and Legal DirectivesThe court directed the release of consignments in cases where the FTP had not been challenged, subject to the petitioner furnishing a bond for 90% of the enhanced valuation of the goods. Different directives were issued based on whether the importers had challenged the policy itself, highlighting the legal nuances in consignment clearance matters.Issue 7: Assessment and AdjudicationThe authorities were granted liberty to initiate proceedings for the assessment and adjudication of the consignments, emphasizing adherence to statutory provisions and legal procedures in resolving the dispute. The disposal of the Writ Petitions marked the end of the legal proceedings, with no costs imposed on either party.This detailed analysis highlights the complex legal issues surrounding the clearance of consignments and the interplay between import regulations, court judgments, and compliance requirements under the Foreign Trade Policy. The judgment provides clarity on the release conditions for consignments and underscores the importance of legal precedent and procedural adherence in resolving trade disputes.