Case Law Details
Atul Commodities Private Limited Vs Commissioner of Customs (Chennai II) Import (Madras High Court)
Atul Commodities Private Limited recently filed multiple writ petitions before the Madras High Court under Article 226 of the Constitution of India. The petitions sought a Writ of Mandamus to compel Respondents 1 – 3 (presumably government authorities) to release various models of secondhand highly specialized equipment, specifically digital multifunction print, copying, and scanning machines. These machines were imported by the petitioner and had been submitted for clearance before the authorities.
The petitioner argued that the machines should be released upon payment of applicable total taxes on the enhanced value, as assessed by Chartered Engineers from SVIA Consultant Services LLP and APGM Engineering Services Pvt Ltd. The certificates provided by these engineers confirmed the enhanced value of the machines, based on which the petitioner sought clearance.
In response to these petitions, both the counsel for the petitioner and the senior standing counsel for the Customs Department referred to a previous batch of writ petitions concerning similar products. These earlier petitions were disposed of by an order dated November 23, 2023, under which the goods were to be released provisionally upon payment or deposit of the enhanced duty amount by the petitioners.
The operative portion of the previous order directed the respondents to consider the plea of the petitioners for release of goods provisionally, subject to the condition that the petitioners pay or deposit the enhanced duty amount. Upon receipt of the enhanced duty amount, the goods were to be released within three weeks. The Customs Department was also directed to quantify the duty amount within one week from the date of receipt of the order, and the petitioners were required to make the payment immediately upon quantification.
The order clarified that it wouldn’t impede the Customs Department from proceeding with further proceedings, including adjudication. Additionally, it allowed for consideration of waiver of demurrage charges upon application by the petitioners.
Applying the precedent set by the previous order, the Madras High Court disposed of the recent writ petitions filed by Atul Commodities Private Limited on similar terms. The court directed the authorities to consider the plea for provisional release of the goods upon payment of the enhanced duty amount. The petitions were disposed of accordingly, and associated Writ Miscellaneous Petitions were closed without any order as to costs.
In summary, the recent writ petitions by Atul Commodities Private Limited concerning the import of secondhand digital multifunction printing and copying machines were disposed of by the Madras High Court following the precedent set by a previous order. The court directed provisional release of the goods upon payment of the enhanced duty amount, with provisions for further proceedings by the Customs Department and consideration of demurrage charges waiver.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
PRAYER in W.P.No.11402 of 2024: Writ Petition is filed under Article 226 of the Constitution of India to issue a Writ of Mandamus, directing Respondents 1 – 3 herein forthwith release the various models of Secondhand Highly Specialized Equipment – Digital Multifunction Print, Copying & Scanning Machines, imported by the Petitioner and which have been submitted for clearance before the Respondents vide Bill of Entry No.2585515 dated 15.03.2024 on payment of applicable total taxes on the enhanced value, as assessed by the Chartered Engineers M/s.SVIA Consultant Services LLP in their report vide Certificate No.SVIA/IND/CHE/2024/105 dated 21.03.2024.
PRAYER in W.P.No.11394 of 2024: Writ Petition is filed under Article 226 of the Constitution of India to issue a Writ of Mandamus, directing Respondents 1 – 3 herein forthwith release the various models of Secondhand Highly Specialized Equipment – Digital Multifunction Print, Copying & Scanning Machines, imported by the Petitioner and which have been submitted for clearance before the vide Bill of Entry No.2585092 dated 15.03.2024 on payment of applicable total taxes on the enhanced value, as assessed by the Chartered Engineers M/s.SVIA Consultant Services LLP in their report vide Certificate No.SVIA/IND/CHE/2024/105 dated 25.03.2024.
PRAYER in W.P.No.11399 of 2024: Writ Petition is filed under Article 226 of the Constitution of India to issue a Writ of Mandamus, directing Respondents 1 – 3 herein forthwith release the various models of Secondhand Highly Specialized Equipment – Digital Multifunction Print, Copying & Scanning Machines, imported by the Petitioner and which have been submitted for clearance before the Respondents vide Bill of Entry No.2641894 dated 19.03.2024 on payment of applicable total taxes on the enhanced value, as assessed by the Chartered Engineers M/s.APGM Engineering Services Pvt Ltd in their report vide Certificate No.APGM/2324/A241 dated 27.03.2024.
PRAYER in W.P.No.11405 of 2024: Writ Petition is filed under Article 226 of the Constitution of India to issue a Writ of Mandamus, Respondents 1 – 3 herein forthwith release the various models of Secondhand Highly Specialized Equipment – Digital Multifunction Print, Copying & Scanning Machines, imported by the Petitioner and which have been submitted for clearance before the Respondents vide Bill of Entry No.2727331 dated 24.03.2024 on payment of applicable total taxes on the enhanced value, as assessed by the Chartered Engineers M/s.Perfect Chartered Engineers & Surveyors in their report vide Certificate No.PER/CEC/IMP-SEA- 010/2024-25 dated 03.04.2024.
PRAYER in W.P.No.11406 of 2024: Writ Petition is filed under Article 226 of the Constitution of India to issue a Writ of Mandamus, directing Respondents 1 – 3 herein forthwith release the various models of Secondhand Highly Specialized Equipment – Digital Multifunction Print, Copying & Scanning Machines, imported by the Petitioner and which have been submitted for clearance before the Respondents vide Bill of Entry No.2812885 dated 30.03.2024 on payment of applicable total taxes on the enhanced value, as assessed by the Chartered Engineers M/s.Perfect Chartered Engineers & Surveyors in their report vide Certificate No.PER/CEC/IMP-SEA-013/2024-25 dated 04.04.2024.
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These writ petitions pertain to the import of second hand digital multifunction printing and copying machines.
2. Both learned counsel for the petitioner and learned senior standing counsel for the Customs Department submit that a batch of writ petitions pertaining to the same product were disposed of by order dated 23.11.2023 in W.P.Nos.29673 of 2023 batch. They further submit that these writ petitions may also be disposed of on the same terms.
3. The operative portion of the order of this Court in the above mentioned batch is as under:
“(i) W.P.Nos.28817 and 30506 of 2023 are disposed of directing the petitioners to cause reply to the show cause notice issued to them and the respondent department is directed to consider the same and pass necessary orders within a stipulated time. As far as release of goods is concerned, the same shall be released provisionally.
(ii) W.P.Nos.29673, 27544, 27547, 27548, 28115, 28119, 29678, 29680, 29684 of 2023 & 30490, 30492, 30495, 30496, 30498, 30500, 30501 & 30503 of 2023 are allowed and the following order is passed:
(a) That there shall be a direction to the respondents to consider the plea of the petitioners to release the goods by way of provisional release on condition that, the petitioner shall pay/deposit the enhanced duty amount. On receipt of such enhanced duty amount paid by the petitioners, the goods in question shall be released within a period of three (3) weeks thereafter.
(b) For payment of such duty, quantification shall be made by the Customs forthwith within one (1) week from the date of receipt of a copy of this order. On receipt of such quantification, the payment shall be immediately made by the petitioners and on receipt of the payment in entirety, the goods shall be released as indicated above at the outer limit of
(c) It is made clear that this order will not stand in the way for Customs Department to go ahead with the further proceedings including the adjudication in the manner known to law.
(d) It is further made clear that in the earlier interim order passed in a related writ petitions by an another Division Bench of this Court, that demurrage charges till date for the goods was directed to be considered for waiver. In this regard, if any application is filed by the petitioners seeking such a waiver of demurrage charges, the same shall be considered and decided by the respondents objectively.”
4. W.P.Nos.11402, 11394, 11399, 11405 and 11406 of 2024 are disposed of on the same lines. Consequently, W.M.P.Nos.12505, 12493, 12502, 12512 and 12513 of 2024 are closed. There shall be no order as to costs.
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