Case Law Details
ASR International Vs Deputy Commissioner of Customs (Madras High Court)
In the case of ASR International Vs Deputy Commissioner of Customs, the Madras High Court has ordered the Deputy Commissioner of Customs to consider allowing the re-exportation of a product called ‘Link Samahan’, without the payment of import duties. The case emerged due to a dispute over the classification of the product under the Customs Tariff Heading.
Analysis: ASR International, the petitioner, imported goods described as ‘Link Samahan’, classifying them under Customs Tariff Heading (CTH) 3004 9011, applicable for ayurvedic medicaments for retail sale. The Customs Department re-classified the goods under CTH 2106 9019, applicable to food preparations, proposing a basic customs duty of 50%. Given these changed circumstances, ASR International expressed an intention to re-export the goods, rather than clear them for home consumption. The court ruled in favor of the petitioner, instructing the respondent to consider their request and dispose of it in a reasoned order within 30 days.
Conclusion: This case is a significant example of import classification disputes. The Madras High Court’s ruling is critical in that it demonstrates the importance of fair application of customs duties based on accurate product classification. This ruling may prompt further considerations about the process of import classification, and the fairness of procedures when disputes arise.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
The petitioner seeks a direction to the respondent for permission to reexport the goods covered by bill of entry no.2750240 dated 06.10.2022 without insisting on payment of import duties.
2. The petitioner states that he had imported goods described as ‘Link Samahan’ by classifying the same under Customs Tariff Heading (CTH) 3004 9011, which deals with ayurvedic medicaments for retail sale. However, it is stated that the Customs Department re-classified the goods under CTA 2106 9019, which pertains to food preparations and consequently proposed the levy of basic customs duty of 50%. In these changed circumstances, the petitioner intends to re-export the goods and does not wish to clear the same for home consumption. The request for permission is made in the said facts and circumstances.
3. B.Ramana Kumar, SPC (Customs), learned standing counsel, 2/4 accepts notice for the respondent. He submits that the request of the petitioner would be considered and disposed of in accordance with law.
4. In view of the said submission, W.P.No.15743 of 2023 is disposed of by directing the respondent to consider the petitioner’s request dated 11.05.2023 for permission to re-export the goods covered by bill of entry no.2750240 dated 06.10.2022 and dispose of the request by a reasoned order within a period of 30 days from the date of receipt of a copy of this order.
