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2. The petitioners contend that the action of the respondents is wholly arbitrary since no reasons have been assigned in the impugned orders which may be viewed as being even suggestive of the formation of a reasonable belief or opinion that the COO certificate or the imported articles were non-compliant with the statutory prescriptions which apply. The petitioners refer to the detailed statutory mechanism prescribed by Section 28DA of the Customs Act, 19622 read along with the Customs Tariff (Determination of Origin of Goods under the Comprehensive Economic Partnership Agreement between India and the United Arab Emirates) Rules, 20223 together with the Customs (Administration of Rules of Origin under Trade Agreements) Rules, 20204 and which compendiously create a minimum threshold which may warrant the detention of goods covered by a Trade Agreement pending verification or enquiry. It is their COO Act CEPA Rules CAROTAR contention that the impugned action when tested on those parameters, is rendered wholly illegal and unjust thus warranting the intervention of this Court. For the purposes of examining the challenge which stands raised, we deem it apposite to take note of the following essential facts.

4. However, both the writ petitioners were ultimately served the impugned orders dated 31 July 2024 with respect to each Bill of Entry and which reads as under: -

"THE SIIB HAS CONCLUDED THEIR INVESTIGATION AND HAS ADVISED TO ASSESS THE BILL OF ENTRY UNDER PD BOND OF 100% OF THE ASSESSABLE VALUE ALONG WITH BANK GURANTEE OF THE DIFFERENTIAL DUTY (WHICH COMES TO 10.712% OF THE ASSESSABLE VALUE) PENDING VERIFICATION OF THE COO CERTIFICATE (CEPA FTA) REGARDING ORIGIN AND VALUE ADDITION, APART FROM TEST BOND FOR VERIFICATION OF PERCENTAGE OF PLATINUM IN THE IMPORTED PLATINIUM ALLOY-IN TERMS OF NOTE 5(A) OF CHAPTER-71. YOU ARE REQUESTED TO GIVE CONSENT. Query Raised By :
(c) the information and documents furnished by the Verification Authority and available on record provide sufficient evidence to prove that goods do not meet the origin criteria prescribed in the respective Rules of Origin."

14. On 18 February 2022, India and the United Arab Emirates7 entered into a Comprehensive Economic and Partnership Agreement8. The aforesaid agreement was ratified by the issuance of a notification dated 30 April 2022 providing for reduced and preferential rates of customs duty and cess on various goods subject to the fulfilment of the conditions specified in the CEPA Rules. The CEPA Rules themselves were notified on 30 April 2022.

30. This takes us to the CEPA Rules and which by virtue of Rule 22 prescribes the procedure for determination of authenticity and correctness of the COO Certificate. The procedure for verification is thereafter detailed in Rule 23 of the CEPA Rules. In terms of Rule 23(2), the Customs Administration of the importing Party is enabled to make a request for verification. While initiating that exercise, the Customs Administration of the importing Party is obliged to specify the reasons for initiation of that verification process and whether it is directed to rule out forgery, elicit minimum required information or determine the point of origin. The aforesaid request is liable to be directed to the Customs Administration of the exporting Party and which is statutorily obliged to provide and transmit the requisite information in terms of Rule 23(5) of the CEPA Rules.