Amendment to Import General Manifest and clearance of imported copper wire rod; interest deposit allowed under protest pending appeal

Amendment to the Import General Manifest was recorded for all four bills of lading; the institution addresses payment of basic customs duty with an equal amount towards interest to be paid "under protest" and treated as a deposit, permitting the importer to contest interest before the appellate tribunal. The court applied precedent to rule that no interest is payable on the IGST component. Clearance of 200.58 MT of specified copper wire rod is authorised without deciding merits, and the order preserves liabilities of other noticees so they derive no benefit from this clearance.

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Issues: (i) Whether the Respondent may be permitted clearance of the imported consignments by amendment of the IGM and substitution in the Bills of Entry and on what terms; (ii) Whether interest is payable on the BCD and IGST and related interim financial conditions including deposit under protest and redemption fine.

Issue (i): Whether the Respondent may be permitted to clear 200.058 MTs of imported copper wire by amendment of IGM and substitution in the four Bills of Entry, and what procedural directions should govern such clearance.

Analysis: The Court considered that amendments to the IGM in respect of the four Bills of Lading had been carried out by the department in respect of all consignments. The Court observed that it need not decide the underlying dispute on ownership or the question whether the Department was aggrieved by the CESTAT order, and proceeded to frame protective directions to enable clearance while preserving rights of the parties and departmental liabilities. The Court balanced the competing interests by prescribing conditions (deposit of redemption fine, payment of duty and interest under protest, amendment of Bills of Entry, issuance of waiver certificates for detention and demurrage, and timeline for departmental actions).

Conclusion: The Respondent is permitted to clear the four consignments upon compliance with the Court's conditions: deposit of Rs. 1,47,00,000 as redemption fine within 15 days; amendment of the four Bills of Entry within 7 days of deposit; provision of assessed Bills of Entry and payment of Basic Customs Duty and an amount equal to interest on BCD paid "under protest" (and IGST without interest); and related implementation steps including waiver of detention and demurrage.

Issue (ii): Whether interest is payable on the Basic Customs Duty and IGST and what interim treatment should apply to such sums.

Analysis: The Court directed that interest on the Basic Customs Duty be paid by the Respondent under protest along with duty, to be treated as a deposit amenable to refund depending on the outcome of the Respondent's prospective appeal. The Court, relying on its earlier decision referenced in the judgment, held that no interest is payable on the IGST component. The Court also provided that if the Respondent succeeds in its appeal on the interest issue, the interest amount paid under protest shall be refunded.

Conclusion: Interest on Basic Customs Duty is to be paid under protest and held as a deposit subject to refund if the Respondent succeeds on appeal; no interest is payable on IGST.

Final Conclusion: The appeal is disposed by directing conditional clearance of the goods in favour of the Respondent while preserving all departmental and third-party liabilities and permitting the Respondent to challenge confiscation and interest issues before the CESTAT with condonation of delay if the appeal is filed within the stipulated four-week period.

Ratio Decidendi: Where amendment of import documentation has been effected and competing rights exist, a court may permit conditional clearance of goods by requiring protective monetary deposits (including redemption fine and interest on duty paid under protest), amendment of import entries, and safeguards (waiver of detention/demurrage), while leaving substantive questions of title and confiscation to be decided on appeal.

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