2022 (2) TMI 1472 - HC - Customs

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

M/s. Empire Traders Versus The Commissioner of Customs, The Assistant Commissioner of Customs, The Deputy Director Tuticorin

Madras HC directed customs authorities to release seized Black Pepper consignment from Sri Lanka after petitioner complained of overvaluation to ... Seizure of imported goods - import of Black Pepper of Sri Lankan origin - over valuation to circumvent a custom notification - seeking release of consignment under Section 110A of the Customs Act, 1962 - HELD THAT:- In the light of the undisputed position that the matter is directly and squarely covered and in the light of the fact that M/s.Travancore Solvents & Oils case [2022 (1) TMI 817 - MADRAS HIGH COURT] has been made by following orders of Hon'ble Division Bench, there shall be a similar order in this matter also. To be noted, the earlier orders have been complied and there has been provisional release of the consignment which has been captured in the aforementioned order. The second respondent i.e., the Joint Commissioner of Customs is directed to quantify the duty, bond amounts etc., communicate the same to the petitioner forthwith and release the said consignment within one week of said remittance i.e., quantified duty/bond amounts/execution of bonds by the petitioner - It is made clear that nothing contained in this order will stand in the way of an independent inquiry by the authorities in the ongoing investigation. In other words, show cause notice, adjudication can proceed and the same can be carried to its logical end on its own merits and in accordance with law uninfluenced/untrammelled by any view or opinion expressed by this Court. Though obvious, this Court makes it clear that no opinion or view has been expressed on the merits of the matter qua allegations on which the said consignment has been seized. Petition disposed off. 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.