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        Case ID :

        2023 (1) TMI 699 - HC - Customs

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        Release of Imported Carpets Held Unjustified The court provisionally released two consignments of 'Knotted Woollen Carpets' imported from the United States, holding by customs authorities deemed ...
                      Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.

                          Release of Imported Carpets Held Unjustified

                          The court provisionally released two consignments of "Knotted Woollen Carpets" imported from the United States, holding by customs authorities deemed unjustified. The court reserved the decision on confiscation pending adjudication and rejected the plea for payment or waiver of demurrage charges due to the petitioner's lack of cooperation in the legal process.




                          Issues:
                          1. Relief sought for release of imported consignments.
                          2. Allegation of goods being put on hold without proper order under Customs Act.
                          3. Claim of delay due to non-cooperation of petitioner.
                          4. Consideration of demurrage charges during the hold period.

                          Issue 1: Relief sought for release of imported consignments
                          The petitioner filed a writ petition seeking the release of two consignments of "Knotted Woollen Carpets" imported from the United States. The consignments were held by customs authorities without being released despite submission of all necessary import documents.

                          Issue 2: Allegation of goods being put on hold without proper order under Customs Act
                          The petitioner argued that the goods were put on hold based on oral instructions from the Directorate of Revenue Intelligence (DRI) without a proper order under Section 110 of the Customs Act, 1962. The petitioner contended that the hold was unjustified and requested provisional release of the goods.

                          Issue 3: Claim of delay due to non-cooperation of petitioner
                          The respondent authorities claimed that a detailed investigation revealed mis-declared goods imported in the name of a non-existing entity, violating trade regulations. They argued that the delay in passing seizure orders and issuing Show Cause Notice was due to the petitioner's non-cooperation, leading to the extension of time limits for legal procedures.

                          Issue 4: Consideration of demurrage charges during the hold period
                          The petitioner sought direction to waive or pay demurrage charges for the period the goods were held. Citing a Supreme Court judgment, the respondents argued that delays were also caused by the petitioner's actions, justifying the refusal to pay demurrage charges. The court found the petitioner's lack of response to letters and summons as contributing to the delays, leading to the dismissal of the request for payment of demurrage charges.

                          In conclusion, the court disposed of the petition, provisionally releasing the consignment while reserving the decision on confiscation pending adjudication. The court rejected the plea for payment or waiver of demurrage charges, citing the petitioner's lack of cooperation in the process.
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                          ActsIncome Tax
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