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.
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