Court dismisses petition seeking to restrain Customs Department from implementing policy circular.

The court concluded that the relief sought by the petitioners to restrain the Customs Department from implementing the DGFT Policy Circular No. 19/2004-09 was premature and misconceived. The Customs Department was directed to finalize the provisional assessments and proceed according to the law. The writ petitions were disposed of, and the interim injunctions granted were vacated. The petitioners were granted the liberty to present their case before the authorities as and when the issue arises.

---

---

Issues Involved:
1. Misreading of Ministry Circulars.
2. Compliance with Pre-shipment Inspection Certificate requirements.
3. Applicability of DGFT Policy Circular No. 19/2004-09.
4. Provisional clearance and final assessment by Customs.

Detailed Analysis:

Misreading of Ministry Circulars:
The court observed that the writ petitions were based on a misreading of the Ministry of Commerce and Industry Policy Circular No. 19/2004-09 dated 18-2-2005 and the Ministry of Finance, Department of Revenue, Central Board of Excise and Customs Circular No. 56/2004-Cus., dated 18-10-2004. The petitioners confused the requirements of the Commerce Ministry's Circular with those of the Customs Circular, leading to a misconceived prayer in the writ petitions.

Compliance with Pre-shipment Inspection Certificate Requirements:
The petitioners, importers of metallic waste and scrap, argued that they complied with the Customs Circular No. 56/2004-Cus., which requires a pre-shipment inspection certificate issued by a National Accreditation body at the country of origin. The court emphasized that the importers must satisfy the requirements of the Ministry of Commerce Policy Circular at the time of Customs clearance. The relevant Public Notices (No. 16/2004-09 and No. 18/2004-09) issued by DGFT were cited, which outline the conditions for importing metallic waste and scrap, including the necessity of a pre-shipment inspection certificate.

Applicability of DGFT Policy Circular No. 19/2004-09:
The petitioners contended that the DGFT Policy Circular No. 19/2004-09 dated 18-2-2005 should not be applied to their imports. They argued that the pre-shipment inspection certificates issued by branch offices of agencies listed in Appendix 28 should be accepted. The court noted that the respondents had not taken any specific action against the petitioners based on this Circular, making the writ petitions premature. The court held that the Customs Department must verify whether the pre-shipment inspection certificates comply with the Foreign Trade Policy and Customs Circulars before making any decisions.

Provisional Clearance and Final Assessment by Customs:
The court observed that the goods had been provisionally cleared based on the inspection certificates produced by the petitioners, subject to the final outcome of the writ petitions. The Customs Department was instructed to finalize the provisional assessments and take necessary actions in accordance with the Customs Act if there were any violations. The court emphasized that the Department should be allowed to make an unbiased decision without interference from the court.

Conclusion:
The court concluded that the relief sought by the petitioners to restrain the Customs Department from implementing the DGFT Policy Circular No. 19/2004-09 was premature and misconceived. The Customs Department was directed to finalize the provisional assessments and proceed according to the law. The writ petitions were disposed of, and the interim injunctions granted were vacated. The petitioners were granted the liberty to present their case before the authorities as and when the issue arises.

---