The Madras High Court directed to reassess bill of entry as there is no suspension of preferential Tariff Treatment on Imported Areca Nut under section 28 DA of Customs Act, 1962.
M/s.N and N Traders, the petitioner has filed Bill of Entry bearing No.6427619 on 15.06.2023 for clearing a consignment of arecanut. The petitioner has classified imported consignment of arecanut under heading No.08028090. The petitioner has claimed exemption under Notification No.26/2000-Cus dated 01.03.2000. The Bill of Entry has been provisionally assessed. The petitioner has been called upon to furnish a Bank Guarantee for Rs.2,45,40,003.60/- and a bond for Rs.2,33,71,432/-.
The imported consignment of arecanut is exempted under Notification No.26/2000-Cus dated 01.03.2000 and attracts Nil duty.The petitioner has drawn attention to a copy of the Certificate of Origin given by the Assistant Director of Commerce, Colombo pursuant to Indo-Sri Lanka Free Trade Agreement (ISFTA). It is submitted that the said Certificate of Origin has not been cancelled.
It was submitted that both the imports made prior to and after the imports covered by the subject Bill of Entry have been allowed to be cleared. Further viewed that a specific dispensation has been provided under Chapter V-AA of the Customs Act, 1962, which contemplates the procedure regarding claim of preferential rate of duty.
Sub-section 4 to Section 28 DA of the Customs Act empowers the Proper Officer to temporarily suspend the preferential tariff treatment if an importer fails to provide any information called for by the Proper Officer.
It was contended that no information has been called for from the petitioner and therefore, without suspending the preferential tariff treatment in terms of sub-section 4 to Section 28 DA of the Customs Act, the petitioner cannot be called upon to furnish the Bank Guarantee for Rs.2,45,40,003.60/-.
A single judge bench comprising Justice C Saravanan observed that there are no records to show that the petitioner was called for to furnish information, which the petitioner has failed to furnish. There is also no suspension of preferential tariff treatment of the imported goods in terms of Section 28 DA of the Customs Act, 1962.
The Court directed the respondents to re-assess the Bill of Entry dated 15.06.2023 provisionally in accordance with the procedure prescribed under Section 28 DA of the Customs Act, 1962 and the rules made thereunder and thereafter allow clearance of the imported consignment of arecanut.
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