Tanya Gupta
Published on: March 10, 2022 at 18:55 IST
While refraining from interfering with the Inquiry of the Revenue Department, the Gujarat High Court, ordered the Release of Goods worth Rs. 79.29 Lakhs, that are detained by the Customs Department at the Mundra Port. (Messrs Sentrum Enterprises Vs. Union of India)
A Writ Application was filed Under Article 226, requesting the Respondent Authorities to allow the Clearance of Goods of Home Consumption covered under Bill of Entry on June 11, 2021.
In connection with the aforementioned Writ Application, Justice JB Pardiwala made this Observation.
A further Order for Waiver of Penal Charges, Demurrage Charges, Ground Rent Charges, etc. for 12 Imported Base Oil Containers was requested by the Applicants.
A sole Proprietary Concern in the Writ application was the Engagement in the Trade of Various Commodities.
In this Case, the Applicant from a United Arab Emirates Based Firm, purchased a Consignment of Base Oil, which is Classified under the Sub-Heading of ‘free’ under the Foreign Trade (Development and Regulation Act) and the Foreign Trade Policy Provisions under the Foreign Trade Act.
The Applicant purchased the Goods worth INR 79,29,314.85 from the Supplier. Despite the fact that the samples of these Goods were sent to the Custom-House Laboratory thrice, it was Determined by Central Revenues Control that the Samples instead of meeting the specifications of Base oil, met with the Requirement of ‘Light Diesel Oil’. Hence, the Goods were Detained.
The Applicant strongly claimed that despite Paying the Duty worth Rs. 20 Lakhs, the Base Oil was Confiscated Alleging that it was Light Diesel Oil.
After observing the Facts, Justice Pardiwala stated the Court’s Intention of not obstructing the Revenue Department’s Investigation into the Exact Nature of Goods.
It further Asserted that a Show-Cause Notice may be issued by the Revenue Department to Call upon the Applicant to Demonstrate why the Goods should not have been Seized.
The Court Ordered accordingly, that,
“We are of the View that there is no point in keeping the Goods Detained at the Mundra Port. The Goods should be Ordered to be Released Subject to the Writ Applicant executing a Bond of an Amount to the satisfaction of the Authority concerned (Inclusive of Interest, Fine and Penalty) with an appropriate further Undertaking in writing on Oath.”
Case No.: C/SCA/13341/2021
Also Read: Disposal of Property Under Criminal Procedure Code, 1973
