Provisional release granted due to inaction on part of Custom department

RKZB International Vs Union of India (Bombay High Court)

Bombay High Court held that over a span of almost two years the department has failed to respond to the application of the petitioner for provisional release of the goods. Accordingly, provisional release of goods grant due to such inaction on the part department.

Facts- On the basis of information, an enquiry/investigation was initiated by the Respondents in regard to the import of ball-bearing. Statements of certain persons were recorded and the goods in question were seized. On 22^nd April 2022, a show cause notice was issued to the Petitioner, alleging that the Petitioner has undervalued the imported goods. It was opined that the declared value of the goods was liable to be rejected in terms of Explanation 2(iii)(a) to Rule 12 of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007.

Thereafter, the Petitioner addressed various letters to the concerned officer requesting that the Petitioner be granted provisional release of the goods. Also, the Petitioner filed an interim reply to the show cause notice. Despite the Petitioner repeatedly knocking the doors of Respondent No.2 (Commissioner of Customs) by such several letters, not a single letter was replied by Respondent No.2. The Respondents having failed to discharge their statutory duty in responding to the Petitioner’s applications/representations, for the release of the goods on provisional basis, as a last resort, the Petitioner has filed the present petition on 7^th August 2023.

Conclusion- Held that we are of the clear opinion that the goods in question are subject matter of one bill of entry. Show cause notice itself, although is issued on 22^nd April 2022 for almost one year has not been adjudicated and in fact, appears to have not progressed at all. We cannot permit a situation where the Petitioner would suffer on both the counts at the hands of Respondent No.2. There is no acceptable reason that the petitioner in law should be denied provisional release on conditions. We are, accordingly, of the clear opinion that this is a fit case where the prayers as made by the Petitioner for provisional release of the goods need to be granted.

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