Option to Re-Export Goods given even if Goods liable to absolute Confiscation: Punjab & Haryana HC directs Customs Authority to provisionally Release Insecticides for Re-Export [Read Order]

re-export goods - confiscation - Customs Authority - Insecticides for re-export - Taxscan

The Punjab and Haryana High Court while directing the Customs Authority to provisionally release Insecticides for re-export held that the option to re-export goods was given even if Goods were liable to absolute confiscation.

The petitioner, M/s Modern Insecticides Limited had exported what is termed to be ‘Sulphur Formulation’ to a Sister Concern in Dubai; however by the time they reached there they could not be sold because there was no demand at that time and consequently, those goods were sent back to the petitioner. On checking those goods it was found that some of the goods which were returned were actually different from the ones that had been exported and consequently, the goods were detained.

The petition has been filed against the alleged act of omission by the Customs Department in not giving effect to the order passed by the Appellate Authority whereby it has been directed that the goods are released provisionally for re-export, subject to furnishing a bond equal to the value of the goods imported and after representative samples of such items, as deemed fit by the investigating agency are drawn for further investigation/examination. The petitioner prays for the provisional release for re-export of the goods in question, in accordance with the order passed by the Appellate Authority.

The division bench of Justice Ajay Tewari and Justice Vikas Bahl in the light of the Supreme Court’s decision in the case of Union of India and others Vs. Raj Grow Impex LLP and others held that even after holding that the goods were liable to absolute confiscation, an option was given to re-export the goods.

The court noted that the petitioner is a 100% export-oriented unit and thus, any difference in the declaration of the value of the goods to be exported by the petitioner would not make much difference, as the petitioner would be entitled to seek a 100% refund of the duty paid.

The court directed the petitioner to furnish a bond amounting to Rs. 15 crores and within seven days of the petitioner submitting the said bond and complying with the other formalities as per law, the respondents are directed to provisionally release the goods in question for re-export.

“The petitioner be permitted to re-export the goods by using the nomenclature “Sulphur Formulation” and it is observed that using of the said nomenclature would not bind the Department and would not entitle the petitioner to raise a plea of estoppel in the pending proceedings or in any proceedings to be initiated by the respondents,” the court said.

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