The Madras High Court has held that the re-export of betelnut products under the customs act can be done by executing a bond which covers the value of the goods.
The appellants were represented by Mr B Vijay Karthikeya and the respondent was represented by Dr.S.Krishnanadh.
The respondent in the writ appeal filed for issuance of a Writ of Mandamus, directing the respondents to permit the petitioner to re-export the goods, namely, Unflavored Supari (Betelnut Product) classifiable under ITC (HS) code 21069030 respectively within a stipulated time considering the perishable nature of the goods that were detained by the office of the respondents and direct the respondent to issue a ‘Detention Certificate’ for waiver of demurrage and charged detention in terms of Regulations 6(1)(1) of the Handling of Cargo in Customs Areas Regulations, 2009 r/w Regulation 10(1)(1) of the Sea Cargo Manifest Transshipment Regulations, 2018.
The respondent stated that he cannot afford to pay tax under the classification proposed and submitted a representation to the appellants that the respondent may be permitted to re-export the goods to avoid tax being assessed under Chapter VIII.
The petitioner was doing imports and export of various commodities, including Arecanut/Betelnuts. The respondent has imported Betelnuts Products commonly known as unflavored Supari to an extent of 1,35,600 kgs. vide 2 Bills of Lading. As per the declaration given by the respondent the goods imported by the respondent fall under Chapter heading 21069030 and the goods were classified accordingly.
Mr Justice S S Sundar and Mrs Justice S Srimathy observed that the respondent has given an undertaking that they will execute a bond to cover the value of the goods, pending adjudication, if, the appellants permit him to re-export the goods taking into consideration the fact that goods are perishable and it will be good for both to permit the respondent to reexport the goods subject to reasonable conditions to protect the interest of the Revenue.
The Court while dismissing the Writ Appeal, directed the appellants to permit the respondent to exercise their option as per the order of the Single Judge by executing a bond to the full value of the goods that were sought to be re-exported.
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