Customs must allow rice export after duty payment before deadline despite initial refusal

Bombay HC allowed petitioner's export of non-basmati rice consignment after customs initially refused permission. Court found petitioner satisfied export conditions under Notification No. 29/2023 by paying export duty on 19th July 2023, before the 20th July deadline. Customs had previously accepted petitioner's request to offload consignments but later denied export permission inconsistently. HC noted customs allowed other consignments based solely on duty payment without goods handover, directing uniform treatment. Court ordered respondents to permit export under specified shipping bills before 30th October 2023.

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Issues:
The issues involved in the judgment are related to the export of non-basmati rice under specific shipping bills, the payment of export duty, and the conditions specified in the relevant notifications.

Summary:

Issue 1: Export of Non-Basmati Rice
The petitioner filed shipping bills for the export of non-basmati rice on specific dates and paid the export duty accordingly. However, permission to export the consignments was initially denied by the respondents, leading to a request for refund of the export duty. Subsequently, amendments were made to the export policy of non-basmati rice, extending the period for export and specifying conditions to be met. The petitioner then requested to export the consignments under the amended notification, which was initially refused by the respondents.

Issue 2: Conditions for Export
The respondents argued that the petitioner was not eligible for export as they had withdrawn the consignments under the shipping bills and requested a refund of the export duty. They contended that the consignments were not handed over to customs before the specified date. However, the petitioner argued that they had paid the export duty before the deadline, satisfying one of the conditions for export. The respondents had allowed the export of another consignment of the petitioner based on the payment of export duty, even though the goods were not handed over to customs before the deadline.

Issue 3: Interpretation of Notifications
The court analyzed the conditions specified in the notifications and a trade notice, clarifying that the conditions were independent of each other, and export was allowed if any one of the conditions was satisfied. The court noted that the petitioner had paid the export duty before the deadline, as required by the amended notification, and therefore, should be allowed to export the consignments under the specified shipping bills.

Decision:
The court held that the petitioner met the conditions for export as per the amended notification and directed the respondents to permit the export of non-basmati rice under the specific shipping bills before the extended deadline. The court emphasized that the conditions were independent, and the payment of export duty sufficed for eligibility for export. The judgment was disposed of with no costs, and the parties were instructed to act on the order accordingly.

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