2022 (10) TMI 646 - HC - Customs

Court Orders Release of Pigeon Peas and Soyabean, Sets Conditions for Vessel, Urges Customs Adjudication

M/s. MKS Glocomm LLP Versus Union Of India

The court directed the release of the Pigeon peas cargo, modified conditions for the provisional release and re-export of the genetically modified ... Seeking production of papers and documents relating to the issuance of the Seizure Memo - seeking release of the Vessel MV Polaris Z (Imo 9109512) - goods identified as pigeon-peas - Soybean consignment - prohibited goods or not - HELD THAT:- It evident from the record and it is an admitted position that in detaining the vessel MV Polaris Z (IMO 9109512), what weighed with the authorities was the only reason that it carried the cargo allegedly prohibited goods of genetically modified Soyabean - In that view and since the cargo will have to travel back to the Mosambique port in the same vessel, and further that the custom authorities have permitted the provisional release of the cargo on the conditions imposed by the court as above, the vessel will have to be necessarily allowed to be released. At the same time, it would be in the fitness of things that the owner of the vessel- the petitioners shall comply with the identical conditions provided for the release of the goods in paragraph No.5.1 above for release of cargo of Soyabean. It is provided that neither the cargo of allegedly prohibited genetically modified Soyabean, nor the vessel MV Polaris Z (IMO 9109512) shall be released by the respondent custom authority unless the conditions of furnishing of bond, bank guarantee and giving of undertaking before this court as directed - Satisfaction of those terms shall be operated as preconditions for permitting the cargo in question as well as the vessel to be permitted to leave. As far as the conditions of production of certification of unloading at the Mozambique Port, the time of four weeks is granted from the date of sailing of the vessel. Petition disposed off. Issues Involved:1. Legality of the seizure of genetically modified Soyabean and Pigeon peas cargo.2. Provisional release and re-export of the seized Soyabean cargo.3. Release of the vessel MV Polaris Z.Issue-wise Detailed Analysis:1. Legality of the Seizure of Genetically Modified Soyabean and Pigeon Peas Cargo:The petitioners, importers of Soyabean and Pigeon peas, challenged the seizure of their cargo by customs authorities. The Soyabean cargo was allegedly genetically modified and thus prohibited for import, while the Pigeon peas were not prohibited. The seizure was based on the grounds that genetically modified Soyabean is not permitted for import into India. The court noted that there was no prohibition on the import of Pigeon peas, and customs authorities admitted this fact. Therefore, the court directed the customs authorities to permit the release and unloading of the Pigeon peas cargo under strict supervision and videography, ensuring no mixing with the Soyabean cargo.2. Provisional Release and Re-export of the Seized Soyabean Cargo:The court considered the feasibility of deporting the genetically modified Soyabean cargo back to its country of origin, Mozambique. Customs authorities proposed three conditions for the provisional release of the Soyabean cargo: furnishing a bond for the entire value of the cargo (Rs. 84 crores), providing a bank guarantee of 25% of the cargo value (Rs. 21 crores), and submitting an undertaking to unload the cargo at Mozambique Port. The petitioners agreed to the bond and undertaking conditions but found the bank guarantee condition harsh. The court, referencing decisions from the High Court of Madras, modified the bank guarantee requirement to Rs. 10 crores, finding it a balanced approach. The court directed the petitioners to comply with these conditions for the provisional release and re-export of the Soyabean cargo.3. Release of the Vessel MV Polaris Z:The vessel MV Polaris Z, which carried the cargo, was also seized. The court noted that the vessel's detention was solely due to it carrying the allegedly prohibited Soyabean cargo. Since the cargo was to be deported back to Mozambique, the vessel needed to be released to facilitate this. The court imposed identical conditions for the vessel's release as those for the Soyabean cargo, including furnishing a bond, providing a bank guarantee, and submitting an undertaking. The vessel and cargo were not to be released until these conditions were met. Additionally, the petitioners were required to file undertakings from their authorized representatives in India to cooperate in the adjudication proceedings.Conclusion:The court disposed of both petitions by directing the release of the Pigeon peas cargo, modifying the conditions for the provisional release and re-export of the Soyabean cargo, and allowing the release of the vessel MV Polaris Z upon compliance with the specified conditions. The customs authorities were instructed to expedite the adjudication proceedings.