Case Law Details
Atul Commodities Private Limited Vs Commission of Customs (Chennai II) Import (Madras High Court)
Conclusion: The designated authority was directed to release the confiscated Digital Multifunction Equipment on condition that, assessee should pay/deposit the enhanced duty and this order would not stand in the way for Customs Department to go ahead with the further proceedings including the adjudication in the manner known to Law.
Held: Assessee-company had filed the petition seeking the release of various models of second-hand Highly Specialised Equipment- digital Multifunction Print, Copying & Scanning Machines, imported by assessee. Assessee submitted that in the batch of the writ petition in W.P.No.29673 of 2022, etc., the Court had already dealt with a similar issue and passed the order dated 23.11.2023. Therefore, assessee would submit that the said order would be squarely applicable to the present case also and hence, he requested the Court to pass a similar order. Respondent submitted that the previous batch of writ petitions were filed challenging the show cause notice. Respondents had issued no show-cause notice. Hence, he would submit that the said order would not apply to the present writ petitions. Respondent also submitted that assessee had imported used copier machines and at the point of entry, the Customs Department required assessee to produce copies of authorization for import of such items with necessary approval of DGFT as per Foreign Trade Policy Guidelines and also to produce the Compulsory Registration Certificate of BIS as indicated by the Foreign Trade Policy of Government of India. Multi-Functional Devices would fall under the category of printers and plotters only as clarified by MEITY. Further, the Foreign Manufacturers Certification Scheme had to be complied with for import. In view of multiple writ petitions filed against the Customs Department assessee was misinterpreting the single aspect of weightage and other requirements required for highly specialized equipment were trying into the classification challenge. Since the importers were not complying with the DGFT guidelines and the Compulsory Registration Orders applicable the said import would be treated as -prohibited- as compliance was not made by importers. Submitting as above, respondent prayed for the dismissal of the present writ petitions. The central issue to be decided in the present case was whether the materials imported by assessee fell under Clause 2.31 of the Foreign Trade Policy 2023 effective from 01.04.2023 under the category of second-hand goods. It was held that writ petitions were disposed of directing assessees to cause reply to the show cause notice issued to them and the respondent department was directed to consider the same and pass necessary orders within a stipulated time. As far as release of goods was concerned, the same should be released provisionally. There should be a direction to the respondents to consider the plea of assessees to release the goods by way of provisional release on condition that, assessee should pay/deposit the enhanced duty. On receipt of such enhanced duty amount paid by assessees, the goods in question should be released within a period of three (3) weeks thereafter. It was made clear that this order would not stand in the way for Customs Department to go ahead with the further proceedings including the adjudication in the manner known to Law. It was 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. In this regard, if any application was filed by assessees seeking such a waiver of demurrage charges, the same should be considered and decided by the respondents objectively.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
The issue involved in these writ petitions are pertaining to the release of various models of second hand Highly Specialised Equipment- digital Multifunction Print, Copying & Scanning Machines, imported by the petitioner.
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