Provisional release of confiscated fresh apples ordered upon bank guarantee pending challenge to minimum CIF value notification

The HC ordered provisional release of confiscated fresh apples imported below minimum CIF value of Rs. 50/- per kg, following SC precedent in Delhi Photocopiers case. Considering the perishable nature of goods and pending challenge to notification validity, the court directed release upon furnishing bank guarantee of Rs. 2,25,000/- towards differential duty. The guarantee remains valid until final determination of notification's validity, protecting both parties' interests during interim period.

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Issues Involved:
1. Validity of Notification No.5/2023 dated 08.05.2023.
2. Confiscation of imported fresh apples under section 111(d) of the Customs Act, 1962.
3. Interim relief and principles of natural justice.

Summary:

1. Validity of Notification No.5/2023 dated 08.05.2023:
The respondent imported "fresh apples" from New Zealand, which were classified into two categories based on CIF price, with some being below Rs. 50/- per kg. According to DGFT Notification No.5/2023, apples with CIF value below Rs. 50/- per kg are "prohibited" from import. The Kerala High Court and Madras High Court had both granted interim stays against this notification, impacting its enforceability.

2. Confiscation of Imported Fresh Apples:
The appellant authority confiscated the apples with CIF value below Rs. 50/- per kg under section 111(d) of the Customs Act, 1962, while allowing the clearance of apples with CIF value above Rs. 50/- per kg. The respondent challenged this confiscation in W.P.No. 24343 of 2023, seeking the release of the goods and a waiver of demurrage and container detention charges.

3. Interim Relief and Principles of Natural Justice:
The learned Judge granted an interim direction to release the goods, citing the perishable nature of the apples and the existing stays on the notification by the Kerala High Court and Madras High Court. The appellant contended that the interim order was issued without notice and violated principles of natural justice. The court noted that the stay orders on the notification had pan-India effect and that the confiscation order lacked legal sanctity due to these stays.

Final Ruling:
The court ordered the release of the apples upon the respondent furnishing a bank guarantee for the differential duty amount of Rs. 2,25,000/-. This interim arrangement was made to safeguard the interests of both parties, pending the final decision on the validity of Notification No.5/2023. The writ appeal was disposed of with these directions, and the connected miscellaneous petition was closed.

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