Case Law Details
Indian Overseas Trading Corporation Vs Principal Commissioner of Customs (Madras High Court)
In a significant ruling, the Madras High Court addressed the petition of Indian Overseas Trading Corporation regarding the re-export of goods mislabeled as green pepper. The court emphasized the need for expedient action given the perishable nature of the goods and directed the customs authorities to resolve the matter promptly. This article provides an in-depth analysis of the court’s decision and its implications.
Indian Overseas Trading Corporation, an importer, brought in two containers of goods labeled as green pepper (fresh) under bill of entry No.3619859 dated 23.05.2024. Upon inspection, customs authorities discovered that the containers also contained black pepper. The petitioner claimed to be under the bona fide impression that the goods matched the invoice and related documents. Furthermore, the exporter confirmed that these goods were intended for Jebel Ali, Dubai, and were to be delivered to A.S. Impex General Trading FZCO.
On 21.06.2024, the petitioner submitted a representation seeking permission to re-export the goods due to the mislabeling. However, receiving no response from the customs authorities, the petitioner filed a writ petition with the Madras High Court.
The petitioner’s senior counsel presented several documents, including the packing list, commercial invoice, phytosanitary certificate, and bill of entry, all describing the goods as green pepper (fresh). Based on these documents, the petitioner argued that their belief in the nature of the goods was justified. The counsel also highlighted the urgency of the situation due to the perishable nature of the goods and requested an expedited order for re-export.
Citing the judgment in Assistant Commissioner of Customs – Imports, Custom House and another v. Mahadev Enterprises (W.A.(MD).No.556 of 2022), the petitioner expressed willingness to execute a bond for the value of the goods pending adjudication.
Mr. Siddarth, representing the customs authorities, acknowledged the petition but distinguished the current case from the precedent cited by the petitioner. He pointed out that the previous case involved a classification dispute, whereas this case pertained to mis-declaration. Nonetheless, he assured the court that the petitioner’s representation would be considered and resolved within a reasonable timeframe.
The court noted the petitioner’s representation dated 21.06.2024 and recognized the urgency due to the perishable nature of the goods. Emphasizing the need for a swift resolution, the court directed the customs authorities to consider and dispose of the representation within two weeks.
The court’s order stated:
“For reasons aforesaid, W.P.No.18308 of 2024 is disposed of by directing the respondent to consider and dispose of the representation dated 21.06.2024 in accordance with law within two weeks from the date of receipt of a copy of this order. The respondent is directed to act on the web copy of the order. Consequently, WMP No.20097 of 2024 is closed. No costs.”
This ruling underscores the judiciary’s recognition of the challenges faced by businesses dealing with perishable goods. By directing the customs authorities to act swiftly, the court has highlighted the importance of timely decision-making in matters involving perishable items.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
The petitioner is an importer. Two containers of goods labelled as green pepper (fresh) were imported under bill of entry No.3619859 dated 23.05.2024. Upon examining the goods, the customs authorities found that black paper was stored in the container along with green pepper (fresh). The petitioner asserts that he was under the bona fide impression that the goods corresponded with the invoice and other documents in relation thereto. It is further stated that the exporter issued a communication stating that these goods were intended for the port at Jebel Ali, Dubai and was to be delivered to A.S. Impex General Trading FZCO. In these circumstances, the petitioner submitted a representation dated 21.06.2024 seeking permission for re-export. Since such representation did not elicit a response from the respondent, the present writ petition was filed.
2 Learned senior counsel for the petitioner invited my attention to the packing list, commercial invoice, phytosanitary certificate and bill of entry and contended that all the documents described the goods as green pepper (fresh). In these circumstances, he submits that the petitioner was justified to proceed on the bona fide belief that the containers contained only green pepper (fresh). By referring to the communication from the exporter, he submits that the petitioner seeks permission for re-exporting the goods since the goods were not intended for the petitioner. He also submits that the goods are perishable and that orders may be passed expeditiously. He relies upon the judgment of the Division Bench of this Court in the Assistant Commissioner of Customs – Imports, Custom House and another v. Mahadev Enterprises, W.A.(MD).No.556 of 2022, dated 23.06.2022 and contends that the petitioner is willing to execute a bond for the value of the goods pending adjudication.
3. Mr. Siddarth, learned junior standing counsel, accepts notice for the respondent. He submits that the judgment of the Division Bench pertains to a classification dispute, whereas, in the present case, the issue relates to mis-declaration. Learned senior counsel, however, points out that the Division Bench judgment also dealt with mismatch. Mr. Siddarth also submits that the petitioner’s representation would be considered and disposed of within a reasonable time.
4. The petitioner has placed on record the representation dated 21.06.2024. By such representation, the petitioner has requested for permission for re-export. Given the fact that the goods are perishable, it is just and appropriate that the representation be considered and disposed of expeditiously.
5. For reasons aforesaid, W.P.No.18308 of 2024 is disposed of by directing the respondent to consider and dispose of the representation dated 21.06.2024 in accordance with law within two weeks from the date of receipt of a copy of this order. The respondent is directed to act on the web copy of the order. Consequently, WMP No.20097 of 2024 is closed. No costs.
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