Madras HC directs to consider Provisional Release of Imported Cargo of Betel Nut during Investigation [Read Order]

The Madras High Court directed to consider provisional release of imported cargo of betel nut during investigation.

The petitioner firm, M/s.Shimla Fruit Agency is engaged in the business of import and local sale of food products, fruits, condiments, spices etc. The Petitioner Firm entered into a contract with one M/s PTV.J and J International Kota Medan, Indonesia for supply of betel nut product popularly known as “supari unflavoured”. Pursuant to such contract, the Petitioner made payments to the said supplier. The supplier raised an invoice for supply of goods.

After procurement, the goods were packed and were shipped from Belawan Port, Indonesia to Tuticorin Seaport in three containers. The Petitioner Firm filed Bill of Entry for clearance of the said goods. However, the goods were not cleared on the ground of certain investigation being undertaken but detained and not allowed for assessment or clearance. It was directed not to permit clearance, pending drawal of samples from the consignment to ascertain the nature of the goods.

The Petitioner sought for provisional release of the subject goods and it was submitted that the declaration adopted by the petitioner with respect to the subject goods were on the basis of the import documents of the Government Authorities of Indonesia.

The Counsel for the petitioner drew attention towards the judgment in Isha Exim vs. A.D.G., Directorate of Revenue Intelligence, Chennai wherein, it has held that the seizure of the imported products namely unprocessed betel nuts at the instance of the investigation is not justified having regard to the Advance Ruling obtained by the said assessee.

The Bench consisting of Justice Mohammed Shaffiq ordered “The Respondents to consider the application of the Petitioner for provisional release under Section 110-A of the Customs Act and the same shall be disposed of by the Adjudicating Authority on merits and in accordance with law, within a period of one (1) week from the date of receipt of a copy of this order.”

To Read the full text of the Order CLICK HERE

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