Case Law Details
SCK International through its Proprietor Abhishek Khurana Vs Commissioner of Customs (Nhava Sheva-V) & Ors. (Bombay High Court)
The case of SCK International through its Proprietor Abhishek Khurana vs. Commissioner of Customs (Nhava Sheva-V) & Ors. represents a significant legal battle in the Bombay High Court concerning the importation and provisional release of goods, specifically premium cold coffee from Vietnam. The petitioner, a proprietorship engaged in regular importation activities, faced challenges with the customs authorities over the release of two consignments of cold coffee, leading to a judicial intervention to resolve the impasse.
Background and Legal Challenge: The petitioner’s importation of premium cold coffee, comprising various ingredients including coffee bean, coffee extract, and milk powder, among others, became contentious due to the detention of two consignments by the customs authorities. These consignments, with bills of entry dated 9th and 15th October 2023, and assessed at significant values, were not released, accruing demurrage and detention charges.
The heart of the dispute lay in the customs department’s demand for a 100% bank guarantee of Rs. 25 Lakh for the provisional release of the goods, a condition the petitioner contested as arbitrary and onerous, especially given the perishable nature of the goods and the petitioner’s history of previous consignments being released on provisional assessment with variable bank guarantees.
Court Proceedings and Orders: During the legal proceedings, the court heard arguments concerning the provisional release of the goods, the classification and appropriate duty of the imported items, and the conditions under which they could be released. The petitioner argued for the release of the goods under less onerous conditions, citing past practices and the perishable nature of the commodities.
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