In a recent ruling, a Single Bench of Justice Dr. Anita Sumanth of Madras High Court (HC) directed the customs officers to release the confiscated goods provisionally on the payment of enhanced customs duty.
The petitioner seeks a certiorarified mandamus calling for and quashing order dated 17.08.2022 passed by the Additional Commissioner of Customs (Respondent 2). It consequentially seeks a direction to R2 to forthwith provisionally release used Multifunction Digital Print and Copying Machines.
The petitioner relied on the judgment of the Supreme Court in the case of Delhi Photocopiers vs the Commissioner of Customs. The case dealt with a challenge by the respondents to orders of this Court whereunder directions had been given for provisionally release goods similar to the goods in question, on terms, and complete the process of adjudication within a fixed time frame.
The Supreme Court observed that despite the fact that the matter was pending before this Court, the Department went ahead and confiscated the goods which are the subject matter of these petitions on 17.07.2021.
Further stated that “we see no reason to differ from a number of orders that have been passed by this Court in the past for provisional release of goods. However, it has been pointed out to us that at least on and from 01.04.2020, the goods, according to the Department, are clearly prohibited goods and on and from this date, unless an order is made under Section 125, the goods must stand confiscated.”
The Supreme Court in the above-mentioned case held that “We, therefore, allow the goods involved in these petitions, to be provisionally released on the same terms that have been indicated in all the other cases.”
The High Court bench observed that though a counter has been filed by the respondents objecting to the averments in the writ affidavit, in the light of the Supreme Court Judgment, the respondent counsel does not very seriously object to this Court directing provisional release of the goods in question.
The Counsel of the petitioner confirmed categorically that enhanced duty will be remitted. Also, the counsel made a prayer for waiver of demurrage, which may be addressed to the appropriate respondent for the consideration in accordance with law and applicable regulations.
The Madras High Court set aside the impugned order and ordered the release of the goods provisionally within a period of two weeks from today on payment of enhanced duty.
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