Customs re-export of detained goods and demurrage waiver request, after s.125 fine order; writ withdrawn with appeal liberty

The dominant issue was whether the writ petition seeking waiver of demurrage/detention charges and permission to re-export should be adjudicated on merits after the customs authority passed an order permitting re-export subject to statutory fines. The HC accepted that the competent customs authority had already permitted re-export under s.125 of the Customs Act, 1962 on payment of a fine and had imposed a penalty under s.112(a), rendering further writ relief unnecessary. The petition was dismissed as withdrawn, with liberty reserved to the petitioner to challenge the laboratory analysis report and, if aggrieved, the adjudication order in appropriate appellate or other proceedings.

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A private limited company importing Sodium Tri Poly Phosphate for use in exporting processed sea foods faced action when the consignment was found not to conform to standards under the Food Safety and Standards Act, 2006. The Commissioner of Customs issued a show cause notice proposing confiscation. On the importer's request, a sample was sent to the Referral Laboratory, which reported that it "does not conform to the standards laid down in the Food Safety and Standards (Food Products and Food Additives) Regulations, 2011." The importer sought waiver of demurrage/detention and penalties and requested permission to re-export, and filed a writ petition challenging the rejection basis and seeking directions for fresh testing and establishment of recognised laboratories. During hearing, it was stated that the Additional Commissioner of Customs had already permitted re-export on payment of a fine under section 125 of the Customs Act, 1962 and imposed a penalty under section 112(a). With no opposition, the petition was dismissed as withdrawn, while "reserving liberty with the petitioner to challenge the report of analysis in appeal before the competent authority" and to challenge the re-export order if aggrieved; all merits contentions were kept open.

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