Customs Directed to Provisionally Release Imported Equipment with Enhanced Duty Payment; Demurrage Waiver Possible.

The HC directed the respondents to provisionally release the secondhand specialized equipment imported by the petitioners before Notification No.13/2024-25, upon payment of enhanced duty within three weeks. Customs must promptly quantify the duty. The order allows Customs to pursue further actions, including adjudication, and considers waiver of demurrage charges upon application. The Writ Petitions were disposed of with no costs awarded, and connected Miscellaneous Petitions were closed.

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Issues:
Release of Secondhand Highly Specialized Equipment - Digital Multifunction Print, Copying & Scanning Machines imported prior to Notification No.13/2024-25.

Detailed Analysis:
The Writ Petitions were filed to direct the respondents to release various models of Secondhand Highly Specialized Equipment imported by the petitioners. The key issue was whether the petitioners were entitled to the release of the equipment imported before Notification No.13/2024-25, which prohibited the import of such items. The petitioners argued that the date of reckoning of import should be the date of shipment/dispatch of goods, not the date of arrival at an Indian Port, citing the Handbook of Procedures issued by the DGFT.

The petitioners referred to Clause 2.17 of the Handbook, which specified the date of reckoning of import/export based on the date of shipment/dispatch. They further highlighted Clause 11.11, which detailed the date of shipment/dispatch for imports, emphasizing that the bill of ladings in their cases were dated well before the impugned notification. The bill of ladings in the present cases ranged from 15.04.2024 to 29.04.2024, all preceding the date of the notification.

The Senior Standing Counsel for the respondents agreed that the bill of lading should be considered the date of shipment and acknowledged that the bill of ladings in the current cases were dated before the impugned notification. Referring to a previous order in a related case, the Court directed the respondents to consider releasing the goods provisionally upon payment of enhanced duty by the petitioners within three weeks. The Customs were instructed to quantify the duty promptly, and upon payment, the goods were to be released. The order clarified that it did not hinder the Customs Department from proceeding with further actions, including adjudication, and allowed for the consideration of waiver of demurrage charges upon application by the petitioners.

In conclusion, the Court disposed of the Writ Petitions with the aforementioned directions, emphasizing no costs were to be awarded, and the connected Miscellaneous Petitions were closed.

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