Case Law Details
Caprico International Pte Ltd Vs Commissioner of Customs and Anr (Delhi High Court)
Import/ release of goods in favour of transferee without transfer of ownership not permissible
Introduction: In a case between Caprico International Pte Ltd and the Commissioner of Customs, the Delhi High Court addressed the issue of importing or releasing goods without the transfer of ownership. The court held that the customs authority cannot permit such import or release under Section 2(26) of the Customs Act, 1962. The petitioner was also held liable for paying 50% of the detention/demurrage charges.
Analysis: The petitioner, Caprico International, had entered into a sales contract for Discarded and Non-Serviceable Motor Scrap. However, the importer, M/s Earth Wire, failed to pay the customs duty, resulting in the goods not being cleared. The petitioner offered a trade discount, reducing the outstanding amount, but the importer still did not pay or clear the goods. The petitioner sought the release of the consignment under the Bill of Lading through a writ petition.
The court concluded that while there may be no illegality in releasing the goods to the petitioner now, the customs authorities cannot be burdened with detention/demurrage charges. The import or release of goods in favor of the petitioner was not permissible prior to the transfer of ownership. The court distinguished this case from others where ownership transfer had been properly communicated to the customs authority. The importer was also held responsible for failing to clear the goods after paying the duty.
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