2024 (4) TMI 793 - HC - Customs

Court Orders Quick Resolution on Cocoa Powder Import Assessments, Mandates Return of Unneeded Bank Guarantees.

The HC directed the respondents to finalize the provisional assessments of bills of entries for cocoa powder imports within four weeks, citing delays as ... Finalization of the provisional assessment - return the Bank Guarantees furnished at the time of provisional assessment - Import of alkalized cocoa powder from Indonesia - HELD THAT:- We may observe that although stand has been taken by the respondents in the reply affidavit, however, a deficit memo of any nature was furnished to the petitioners. The internal processes which have been undertaken by respondent no. 3 cannot take indefinite time. They are required to be concluded as expeditiously as possible and more particularly when the petitioner has complied all the conditions in regard to the provisional release of the goods. Thus, in the facts and circumstances of the case once all the documents as called upon by the designated officer were submitted by the petitioners including the submission of the certificates of the country of origin (in some of the cases), and if any further compliances were required to be fulfilled by the petitioner, in that case, respondent no. 3 ought to have issued a specific communication calling upon the petitioner to submit such documents/compliances. In absence of any such action being taken coupled by a decision not being taken to finalize the bills of entries, would fall into the realm of arbitrariness, as also abdication of duties by the concerned officers of the department. Thus, we are of the opinion that the petition needs to be disposed of keeping open all contentions of the parties, by directing respondent no. 3 to finalize the bills of entries in each of the petitions, which shall be completed within four weeks from today. If any further documents are required to be submitted by the petitioner, the same be called upon to be submitted within a period of one week from today. Disposed of in the above terms. Issues involved:The issues involved in the judgment are related to the finalization of provisional assessments of bills of entries for importing cocoa powder, the return of bank guarantees, and the compliance with Customs Act, 1962.Finalization of Provisional Assessments:The petitioners, who regularly import alkalized cocoa powder, sought finalization of provisional assessments of bills of entries. They had submitted relevant documents and bank guarantees for provisional clearance. However, the respondents failed to finalize the assessments, causing prejudice to the petitioners. The respondents cited the need for a verification report from the issuing country, as per Section 28DA of the Customs Act, 1962. The court noted the lack of communication or action from the respondents and directed them to conclude the assessments expeditiously.Compliance with Procedures:The court emphasized that once all required documents were submitted by the petitioners, the respondent should have communicated any further requirements. The failure to do so and the delay in finalizing the bills of entries were deemed arbitrary and a neglect of duty by the department officers. The court directed the respondent to finalize the bills of entries within four weeks and requested any additional documents to be submitted within one week.Return of Bank Guarantees:Upon finalization of provisional assessments and if bank guarantees were no longer required, the court ordered the return of the guarantees to the petitioners. The judgment concluded by disposing of the petition in the mentioned terms without any costs involved.