Customs Authorities to Immediately Release Perishable Goods: Calcutta High Court Interprets Section 110 A [Read Order]

The Calcutta High Court has, in a recent writ petition filed before it by the petitioner, held that the customs authorities are to immediately release the goods under section 110 A of the Customs Act, 1962, whenever the goods so detained are perishable in nature.

The above said observation was made by the court when the petitioner came before it via a writ petition, pleading the release of the goods in question provisionally under Section 110A of the Customs Act on the basis of an order passed by the Appellate Authority in his favor, as was opposed by the Customs Department authorities.

The counter arguments of the respondent customs authorities were that no relief shall be granted to the petitioner for the release of the goods in question, the departmental claim being supported by para two of a circular dated 16th August, 2017, and further that the aforesaid order of the Commissioner of Customs (Appeal)/Appellate Authority passed in favor of the petitioner not being accepted by the Revenue Department, an appeal filed  has been filed in this regard which is pending before the Tribunal.

However, on the respondent department’s failure to produce any order from the Tribunal, showing the aforesaid appellate authority’s (Commissioner of Customs (Appeal)) order to be stayed by the it, Justice MD. Nizamuddin made the following observation, while disposing of the writ petition :

“The Division Bench of this Court, in the case of Texport Electronics Limited , has held that even a partial prohibition will not prevent the release of the goods provisionally and there cannot be any bar in releasing the goods if not prohibited in terms of any circular.

In addition, the submission of petitioner is that the goods in question is a perishable goods which is spirit and if it is not released timely, it will perish.

In view of the reasonings and discussions made hereinabove, this writ petition being WPO 2591 of 2022 is disposed of directing the respondent authority concerned to release the goods in question upon furnishing of bank guarantee of Rs.56 lakhs which was determined by the respondent department as a redemption fine and if such bank guarantee is furnished to the respondent authority concerned, the goods in question shall be released within 48 hours from the date of furnishing of such bank guarantee subject to satisfaction of the department and compliance of any other statutory formalities which should be indicated to the petitioner by the respondent concerned.

With these observations and directions, this writ petition stands disposed of”

To Read the full text of the Order CLICK HERE

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