TaxTMI 
TaxTMI 
TaxTMI 
2024 (3) TMI 297
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....e Bill of Entry No. 7568895, dated 28th August 2023, on the purported belief of mis-classification of the goods, despite an out of charge being ordered by the proper officer by the Customs. 3. The Petitioner is, inter alia, engaged in the business of import of laboratory chemicals for the last more than twenty years and has been registered under Import Export Code No. 3108009451. The Petitioner, for the last more than twenty years, has been importing Ethyl Alcohol Absolute having purity (Ethyl Alcohol Content) of 99.9% and above, in bottles of 500 ml, from various countries. The said Ethyl Alcohol Absolute carries markings indicating that the same is meant for use solely as Laboratory Chemicals. 4. The said Ethyl Alcohol Absolute has been assessed by the Respondents as "Laboratory Chemical" under Customs Tariff Heading 98.02 (CTH 98.02) of the First Schedule to the Customs Tariff Act, 1975, since the past twenty years. Further, note 3 of Chapter 98 covers all chemicals, organic or inorganic, whether or not chemically defined, imported in packing not exceeding 500 gms or 500 millilitres and which can be identified with reference to the purity, marking or other features to show the....
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....ermitting the clearance of the goods for home consumption i.e., granted out of charge to the Ethyl Alcohol Absolute on 1st September 2023. 8. However, before the Petitioner could take delivery of the Ethyl Alcohol Absolute, the Petitioner received a letter dated 5th September 2023 from Respondent No. 4, inter alia, informing the Petitioner that the goods were put on hold. 9. Accordingly, the Ethyl Alcohol Absolute was examined by the Respondents on 5th September 2023 in the presence of the Customs House Agent of the Petitioner and were sent for testing to DYCC Lab. at JNCH. The said DYCC Lab provided its Test Report on 10th October, 2023, which was provided to the Petitioner along with the Show Cause Notice. 10. Subsequent to the aforementioned examination, the Superintendent of Customs (Preventive) called upon the Petitioner to appear before Respondent No. 3 on 13th September 2023, to give oral evidence and to submit the required documents. Accordingly, on 13th September 2023, the Petitioner appeared before Respondent No. 4, gave his oral evidence and submitted the documents in respect of Bills of Entry dated 28th August 2023. 11. Since the Petitioner was incurring huge demurr....
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....ported by M/s. K. Raj and Company on execution of a bond. 18. It is the submission of the Petitioner that the action of the Respondents in seizing and withholding the Ethanol Absolute covered under Bill of Entry No. 7568895 dated 28th August 2023, despite an Order for clearance of the same for home consumption having been granted under Section 47 of the Act by the proper officer of customs, is ex-facie, arbitrary, without jurisdiction, without authority of law and contrary to the orders passed by this Court. 19. The Petitioner submits that the purported seizure is arbitrary and no reasonable person can have a belief that the goods are liable to confiscation by invoking Section 110 of the Act. 20. The Petitioner submits, relying upon the Judgement dated 4th November 2023 and Order dated 24th January 2024 passed by this Court in the case of M/s. K Raj and Co., that the Respondents ought to have allowed provisional release of the goods upon execution and submission of a bond by the Petitioner. 21. The Petitioner submits that the Ethyl Alcohol Absolute has been seized on the purported belief that it is classifiable under CTH 22.07, which is ex-facie erroneous and without any basis.....
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....olute is meant for laboratory use only and is rightly classifiable under CTH 98.02. 26. The Petitioner further submits that a mere claim for classification or exemption cannot be the basis for seizure of goods. In these circumstances, the Petitioner submits that there is no justification on the part of the Respondents in seizing the goods in question and, therefore, he is entitled for the reliefs sought by him in the present Petition. 27. Having heard learned Counsel for the parties and having perused the documents on record, we are of the view that the Petitioner would be justified in seeking provisional release of the Ethyl Alcohol Absolute. Admittedly, there is no dispute that the Petitioner has been importing Ethyl Alcohol Absolute for the last many years and the classification under CTH 98.02 has been accepted by the Respondents, except in respect of Bill of Entry No. 7568895, which is the subject matter of the present Petition. 28. The Petitioner is a regular importer of Ethyl Alcohol Absolute and not a fly by night operator. The Ethyl Alcohol Absolute is in bottles of 500 ml and confirms to the marking requirement as per Chapter 98 of the Customs Tariff Act. 29. In our v....