Petitioners Permitted to Re-Export Goods Without Bank Guarantee; Detention Certificates Granted; Habitual Offender Case Dismissed.

W.P.(MD) Nos.1250 and 1252 of 2023 were allowed, permitting the petitioners to re-export goods upon executing a bond to the full value without a bank guarantee, and they were to receive detention certificates for demurrage and container detention charges. The court acknowledged the stay on the relevant notification by the Karnataka HC. W.P.(MD) No.1391 of 2023 was dismissed due to the petitioner being a habitual offender. No order was made regarding costs.

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Issues Involved:
1. Whether the Department was justified in demanding a bank guarantee for re-export of the goods.
2. Whether the Department should issue a detention certificate for demurrage and container detention charges in terms of Regulation 6(1)(l) of Handling of Cargo in Customs Areas Regulation, 2009 r/w Regulation 10 (1)(l) of Sea Cargo Manifest Transhipment Regulations, 2018.

Summary:

Issue 1: Justification of Bank Guarantee Demand for Re-export

The petitioners, importers of betelnut products, contended that their goods should be classified under Chapter Heading 21069030, while the Department argued for classification under Chapter 08028020, which would prohibit their import under Notification 20/2015-20. This notification, however, had been stayed by the Karnataka High Court. The petitioners argued that demanding a bank guarantee for re-export was against the language of the order in W.A.No.556 of 2022 and that the stay on the notification should nullify the demand. The Department maintained that the bank guarantee was necessary to cover potential redemption fines and penalties, citing Section 110A of the Customs Act, which allows for provisional release with security. The court noted that the discretion exercised by the Department in demanding a bank guarantee was not evident in the cases of W.P.(MD) Nos.1250 and 1252 of 2023, unlike in W.P.(MD) No.1391 of 2023, where the petitioner was deemed a habitual offender.

Issue 2: Issuance of Detention Certificate

For W.P.(MD) Nos.1250 and 1252 of 2023, the court ruled that since the detention was on the Department's orders and the notification was stayed by the Karnataka High Court, the petitioners should be issued detention certificates for demurrage and container detention charges. The court referenced the case of Balaji Dekors Vs. Commissioner of Customs, which supported the issuance of such certificates under similar circumstances.

Conclusion:

- W.P.(MD) Nos.1250 and 1252 of 2023: Allowed. The petitioners are permitted to re-export upon executing a bond to the full value of the goods without a bank guarantee. They shall be issued detention certificates for demurrage and container detention charges.
- W.P.(MD) No.1391 of 2023: Dismissed due to the petitioner's status as a habitual offender.

Costs: No order as to costs.

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