Appeal allowed, Department to examine goods as per new OM, provisional release ordered. Adjudication post release.

The appeal was allowed with consequential relief, directing the Department to examine the goods as per the new OM dated 10th January 2023 and provisionally release conforming containers. The adjudicating authority was instructed to adjudicate the show-cause notice after the provisional release exercise, subject to final adjudication.

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Issues Involved:
1. Applicability of Office Memorandum (OM) dated 10th January 2023.
2. Provisional release of imported goods under Section 110A of the Customs Act, 1962.
3. Retrospective application of beneficial legislation.

Summary:

1. Applicability of Office Memorandum (OM) dated 10th January 2023:
The Appellant, engaged in the manufacturing of paper, imported waste paper under the Foreign Trade Policy. The Ministry of Environment and Forests (MoEF) issued a revised OM dated 11th May 2010, prescribing guidelines for non-recyclable material in waste paper consignments. The Appellant contended that the OM dated 11th May 2010 was superseded by a new OM dated 10th January 2023, which relaxed the conditions of import and increased the permissible limit of non-paper items to 5%. The new OM also provided for container-wise examination of goods, unlike the previous OM.

2. Provisional release of imported goods under Section 110A of the Customs Act, 1962:
The Appellant's application for provisional release of the seized consignment was initially rejected by the adjudicating authority based on the guidelines from the OM dated 11th May 2010. The Appellant argued that the new OM dated 10th January 2023 should apply to the pending proceedings, as it is beneficial and does not inflict a corresponding detriment on others. The Tribunal directed the Department to examine the goods container-wise as per the new OM and to provisionally release conforming containers on Bond/Undertaking.

3. Retrospective application of beneficial legislation:
The Appellant relied on the judgments of the Hon'ble Supreme Court in Kolhapur Cane Sugar Works Limited vs. Union of India and Commissioner of Income Tax vs. Vatika Township Private Limited to argue that beneficial legislation should be given retrospective effect. The Tribunal agreed, stating that the new OM would be the governing law for adjudicating the imported goods, providing for re-export or local disposal with quantified penalties.

Conclusion:
The appeal was allowed with consequential relief, directing the Department to examine the goods as per the new OM dated 10th January 2023 and provisionally release conforming containers. The adjudicating authority was instructed to adjudicate the show-cause notice after the provisional release exercise, subject to final adjudication.

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