Jai Enterprises Vs Principal Commissioner of Customs (Chennai-III) (Madras High Court)
Summary: The writ petition before the Madras High Court sought a direction to Customs authorities to permit re-export of 202,700 square metres of fusible interlining textile coated fabrics imported by the petitioner from China. The goods were imported under a warehousing Bill of Entry dated 15.01.2025 for SEZ import and were declared under Customs Tariff Heading (CTH) 59039090.
After clearance was sought, the investigating authorities initiated an inquiry and informed the petitioner that the goods were under investigation. Samples were drawn and sent to the Central Revenue Control Laboratory (CRCL), New Delhi. Based on the CRCL test report, Customs authorities concluded that the goods were misclassified and fell under a different CTH. Consequently, the goods were detained and later seized under a seizure memo dated 26.05.2025 on the ground of misclassification.
The petitioner was summoned to appear before the investigating officer at New Delhi and participated in the enquiry. The Directorate of Revenue Intelligence informed the petitioner that, due to the alleged misclassification, the goods were liable for confiscation under the Customs Act, 1962. Despite the investigation being completed, the goods continued to remain under seizure without any decision on their release. The petitioner contended that the prolonged detention caused hardship and therefore sought permission to re-export the goods, particularly as the overseas supplier had agreed to take them back.
