In a major ruling the Kerala High Court observed that the remedy of filing appeal is available once request for exemption from payment of customs duty has been declined.
The petitioner is a private limited company, incorporated under the provisions of the Companies Act, 1956, and is engaged in the export business of spices. The petitioner had exported 25000kg of Coarse Ground Chilli to M/s. McCormic France Carpentras, France, vide shipping bill No.5144263 dated 31.10.2022.
The consignee rejected 6000kg of the exported Coarse Ground Chilli of the petitioner, as according to the consignee, the said amount of Coarse Ground Chilli did not meet the granulation (particle size). The said 6000Kg of Coarse Ground Chilli was re-imported to the petitioner by the consignee on 21.11.2023.
The petitioner also made a request for provisional release of the goods subject to furnishing a bond. During the pendency of this writ petition, the assessment order ( original ) has been passed on 25.01.2024, wherein it has been held that Coarse Ground Chili re-imported vide the Bill of Entry 8862322 dated 21.11.2023 is not eligible for exemption under Sl.No.14 of Annexure-I of Notification No.52/2003-Customs dated 31.03.2003. Once the petitioner request for exemption from payment of duty has been declined in the order (original) dated 25.01.2024, the petitioner has the remedy of filing the appeal.
The counsel for the petitioner submitted that the final adjudication before the Appellate Authority may take time and the Coarse Ground Chilli which has been re-imported may get completely decayed of its value and therefore, this Court may pass an order for provisional release of the goods subject to furnishing bond.
A Single Bench of Justice Dinesh Kumar Singh observed that “In view thereof, this Court does not find that this writ petition is to be entertained when the final order has been passed on 25.01.2024 against which the remedy of appeal is provided under the Customs Act, 1962.”
“When this Court has not entertained the writ petition, there is no question of granting any interim relief as prayed by the petitioner. However, it would be expedient in the interest of justice to direct the Appellate Authority to decide the Interim Application of the petitioner within a period of two weeks from the date of its filing along with the appeal. The Appellate Authority must consider all the facts and circumstances of the case and pass necessary order, in accordance with the law, on the Interim Application of the petitioner for provisional release of the goods within two weeks from the date of filing of the appeal and the Interim Application” the Court added.
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