Customs authorities must release seized Black Pepper consignment after petitioner posts duty and bond amounts within one week

Madras HC directed customs authorities to release seized Black Pepper consignment from Sri Lanka after petitioner complained of overvaluation to circumvent customs notification. Following precedent in Travancore Solvents Oils case, court ordered Joint Commissioner of Customs to quantify duty and bond amounts, communicate to petitioner, and release goods within one week of payment. Court clarified the provisional release would not impede ongoing investigation, adjudication proceedings, or show cause notices, which could continue independently on merits.

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Issues Involved:
1. Import of Black Pepper from Sri Lanka.
2. Alleged overvaluation to circumvent customs notification.
3. Provisional release of consignment under Section 110A of the Customs Act, 1962.
4. Compliance with previous judicial orders.

Issue-wise Detailed Analysis:

1. Import of Black Pepper from Sri Lanka:
The matter pertains to the import of 30120.00 kilograms of Black Pepper of Sri Lankan origin, which was seized on the grounds of alleged overvaluation to circumvent a customs notification. The petitioner filed a Bill of Entry dated 13.07.2021 for home consumption, but after more than two and a half months, they were summoned under Section 108 of the Customs Act, 1962, to provide various documents. Despite compliance, the consignment was not released, leading to the petitioner sending representations and eventually the seizure of the consignment on 26.10.2021.

2. Alleged Overvaluation to Circumvent Customs Notification:
The crux of the issue is the allegation that the invoices for the consignment were overvalued to circumvent the Minimum Import Price (MIP) of Rs.500/- per kilogram, as import of Black Pepper up to this value is prohibited under notification No. 21/2015-2020 dated 25.07.2018 issued by the Directorate General of Foreign Trade (DGFT). The petitioner argued that the issue of provisional release of such consignments under seizure for alleged overvaluation is no longer res integra, as similar consignments have been provisionally released by the court.

3. Provisional Release of Consignment under Section 110A of the Customs Act, 1962:
The petitioner sought provisional release of the consignment under Section 110A of the Customs Act, 1962. The court noted that similar issues had been addressed in previous cases, such as the Al Qahir International case and the Travancore Solvents & Oils case, where provisional release was directed under certain conditions. The court observed that the matter was directly covered by these precedents, and the petitioner's request for provisional release was justified.

4. Compliance with Previous Judicial Orders:
The court referred to a series of orders made by different judges, including a Division Bench, directing provisional release under Section 110A of the Customs Act. The court highlighted that in the Al Qahir International case, the Division Bench modified the conditions imposed by the Single Judge, allowing a bond instead of a bank guarantee. The court also noted that the Department had accepted and complied with these orders, releasing similar consignments. The court emphasized that the facts in the present case were identical to those in the Al Qahir International case, and thus, the petitioner's prayer deserved to be acceded to.

Judgment:
The court disposed of the writ petition with the following directives:
(a) The Joint Commissioner of Customs was directed to quantify the duty, bond amounts, etc., communicate the same to the petitioner, and release the consignment within one week of the petitioner's remittance and execution of bonds.
(b) The court clarified that the ongoing investigation and adjudication could proceed independently, without being influenced by the court's order.
(c) The issue of waiver of demurrage charges was left open to be pursued by the authorities according to applicable rules and regulations.

There was no order as to costs.

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