Allahabad High Court
Serene Company vs The Principal Commissioner Of Customs, ... on 21 January, 2025
HIGH COURT OF JUDICATURE AT ALLAHABAD ?Neutral Citation No. - 2025:AHC:9723-DB Chief Justice's Court Case :- WRIT TAX No. - 150 of 2025 Petitioner :- Serene Company Respondent :- The Principal Commissioner of Customs, Noida Customs and 2 others Counsel for Petitioner :- Mohit Singh, Priyadarshi Manish Counsel for Respondent :- Gaurav Mahajan Hon'ble Arun Bhansali,Chief Justice Hon'ble Vikas Budhwar,J.
1. This petition has been filed by the petitioner aggrieved of the seizure memo dated 12.11.2024 and seeking a direction to the respondents to provisionally release the goods imported against the bill of entry dated 10.10.2024 under Section 110A of the Customs Act, 1962.
2. Learned counsel for the petitioner with reference to the seizure memo (Annexure-19) dated 12.11.2024 made submissions that the entire basis for seizing the goods is purportedly on account of non-compliance of para 2.31 of the Foreign Trade Policy (FTP), 2015-20 and failure of petitioner to produce the authorization as required under the said para.
3. Submissions have been made with reference to judgments of Madras High Court in M/s. Simple Machines Vs. The Commissioner of Customs : Writ Petition No. 29673 of 2023, etc., decided on 23.11.2023 and Telangana High Court in M/s. Arka Business Solutions Vs. Superintendent of Customs : Writ Petition No. 2014 of 2024, decided on 08.02.2024 and the directions issued therein to indicate that in similar nature petitions, the Courts have issued directions for provisional release of the goods in terms of provisions of Section 110A of the Act and that despite repeated applications made by the petitioner with the various authorities for the purpose, the prayer made for provisional release of the goods have not been adverted to by the respondents and therefore, they be directed to decide the pending application seeking provisional release of the goods in question. Reference has been made to the applications made on 21.11.2024, 12.12.2024 and 19.12.2024.
4. Learned counsel for the respondents made submissions that the pending applications of the petitioner shall be decided by the competent authority with expedition.
5. We have considered the submissions made by learned counsel for the parties and have perused the material available on record.
6. The Madras High Court, in its order dated 23.11.2023 in a similar nature matter, inter alia, directed as under:-
"In the result,
(i) W.P.Nos.28817 and 30506 of 2023 are disposed of directing the petitioners to cause reply to the show cause notice issued to them and the respondent department is directed to consider the same and pass necessary orders within a stipulated time. As far as release of goods is concerned, the same shall be released provisionally.
(ii) W.P.Nos..29673, 27544, 27547, 27548, 28115, 28119, 29678, 29680, 29684 of 2023 & 30490, 30492, 30495, 30496, 30498, 30500, 30501 & 30503 of 2023 are allowed and the following order is passed:
(a) That there shall be a direction to the respondents to consider the plea of the petitioners to release the goods by way of provisional release on condition that, the petitioner shall pay/deposit the enhanced duty amount. On receipt of such enhanced duty amount paid by the petitioners, the goods in question shall be released within a period of three (3) weeks thereafter.
(b) For payment of such duty, quantification shall be made by the Customs forthwith within one (1) week from the date of receipt of a copy of this order. On receipt of such quantification, the payment shall be immediately made by the petitioners and on receipt of the payment in entirety, the goods shall be released as indicated above at the outer limit of three (3) weeks.
(c) It is made clear that this order will not stand in the way for Customs Department to go ahead with the further proceedings including the adjudication in the manner known to law.
(d) It is further made clear that in the earlier interim order passed in a related writ petitions by an another Division Bench of this Court, that demurrage charges till date for the goods was directed to be considered for waiver. In this regard, if any application is filed by the petitioners seeking such a waiver of demurrage charges, the same shall be considered and decided by the respondents objectively.
No costs. W.M.P.Nos.28415 and 30149 of 2023 are ordered and the other writ miscellaneous petitions are closed."
7. Similarly, the Telangana High Court following the order as passed by the Madras High Court, directed as under:-
"a) The petitioner shall pay/deposit the enhanced duty amount. On receipt of such enhanced duty amount paid by the petitioners, the goods in question shall be released within a period of four (04) weeks thereafter.
b) For payment of such duty, quantification shall be made by the Customs forthwith within one (01) week from the date of receipt of a copy of this order. On receipt of such quantification, the payment shall be immediately made by the petitioners and on receipt of the payment in entirety, the goods shall be released as indicated above at the outer limit of four (04) weeks.
c) It is made clear that this order will not stand in the way for Customs Department to go ahead with the further proceedings including the adjudication in the manner known to law.
d) It is further made clear that so far as the condition of the petitioner that demmurage charges till date, for the goods be considered for waiver, in this regard, if any application is filed by the petitioners seeking such a waiver of demmurage charges, the same shall be considered and decided by the respondents objectively.
27. In addition, the petitioners are also directed to provide a bank guarantee worth 10 percent of the total price of the goods imported by them. Further, it is also ordered that in the event if the petitioners upon release of the goods provisionally make and sell the supply to their customers, details of the customers that of relevant price and details of the respective transactions shall be maintained and made available to the respondent authorities from time to time.
28. The present writ petitions accordingly stands allowed. However, there shall be no order as to costs. Consequently, miscellaneous petitions pending if any, shall stand closed."
8. In view of the fact that applications made by the petitioners seeking provisional release of goods under Section 110A of the Act are pending with the competent authority, respondent No. 2, The Additional Commissioner of Customs is directed to decide the pending application of the petitioner, within a period of two weeks from the date a copy of this order is placed by the petitioner with the said authority. The authority, would take into consideration the directions issued by the Madras High Court and the Telangana High Court while passing the order.
9. With the above directions, the petition stands disposed of.
Order Date :- 21.1.2025 Rajesh/Mukesh Pal (Vikas Budhwar, J.) (Arun Bhansali, CJ.)