Case Law Details
M/s. Priyanka Enterprises Vs Joint Commissioner of Customs (Madras High Court)
High Court held that Section 111(m) of Customs Act can only be invoked if goods do not correspond in respect of value or any other particular with the Entry made under the Act
FULL TEXT OF THE HIGH COURT ORDER / JUDGMENT
Heard Mr.Hari Radhakrishnan, learned counsel appearing for the petitioner and Mr.G.M.Syed Nurullah Sheriff, learned Special Government Pleader appearing for the respondent. With the consent on either side, the writ petition itself is taken up for disposal.
2. The petitioner is before this Court challenging an order-in-original dated 07.11.2017 passed in respect of an import made by the petitioner vide Bill of entry No.3450978 dated 03.10.2017 for clearance of imported goods declared as GSL ARTEMIA BRINE SHRIMP EGGS imported from M/s.Great Salt Lake Artemia, USA with an assessable value of Rs.6,44,71,167/-. The petitioner made a self-assessment of the duty as provided under Section 17(1) of the Customs Act, 1962 by classifying the goods under Customs Tariff Heading 05119911. The petitioner sought to avail concessional duty (preferential rate of 0% IGST as against 5% IGST) by relying upon Notification No.002/2017-Cus dated 28.06.2017 in Sl.No.33. The respondent opined that the item imported by the petitioner should be classified under IGST Notification No.001/2017 Sl.No.I-21 and attracts IGST @ 5%. Therefore, the respondent was of the prima facie view that the exemption claimed by the petitioner for the imported goods does not appear to be correct. Though under normal circumstances a show cause notice should have been issued, the petitioner by letter dated 12.10.2017 requested for adjudication of the case without issuing show cause notice and personal hearing. This was acceded to and the impugned order has been passed. The respondent while passing the impugned order did not restrict himself only to the life consignment covered under Bill of Entry No.3450978 but also in respect of earlier import in Bill of Entry No.2311679 dated 04.07.2017 and proceeded to invoke his powers under Section 111(m) of the Customs Act. The respondent has re-assessed both the Bill of Entries and levied IGST @ 5%, confirmed the payment of differential duty and ordered confiscation of goods giving option to the petitioner to redeem the goods covered in Bill of Entry No.3450978 dated 03.10.2017 on payment of redemption fine of Rs.60,00,000/-. However, the respondent refrained from imposing any redemption fine on the goods imported vide Bill of Entry No.2311679 dated 04.07.2017.
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