Independent decision to be taken by Customs Authorities for Provisional Release of detained Goods: Madras HC [Read Order]

The Madras High Court observed that independent decision to be taken by Customs Authorities for Provisional Release of detained goods.

The petitioner, M/s.Isha Exim, imported Supari from Thailand. According to the respondents, they are prohibited goods, whereas the petitioner categorically contends that they are not. According to the petitioner, as per the Advance Ruling dated 07.08.2015 in respect of M/s Excellant Betelnut Products Pvt Ltd., Nagpur, the subject goods namely Supari will fall under Chapter 21 of the Customs Tariff Act, 1975 and therefore, they are not prohibited goods.

The petitioner categorically contended that the product Supari does not contain Lime, Katha (catechu) and Tobacco and also does not contain any other ingredients such as Cardamom, Copra or Menthol. Hence according to the petitioner, the product Supari will fall only under Chapter 21 of the Customs Tariff Act, 1975 and they are not prohibited goods for import.

The Standing Counsel appearing for the respondents submitted that the Supari imported by the petitioner will fall only under Chapter 8 of the Customs Tariff Act, 1975 hence they are prohibited goods and that the goods were rightly detained by the Customs Authorities as they are prohibited goods.

Section 110-A of the Customs Act, 1962 reads as : Provisional release of goods, documents and things seized pending adjudication—Any goods, documents or things seized under section 110, may, pending the order of the adjudicating officer, be released to the owner on taking a bond from him in the proper form with such security and conditions as the Commissioner of Customs may require.

The Court of Justice Abdul Quddhose noted that “As seen from section 110-A of the Customs Act, 1962, an independent decision will have to be taken by the Customs Authorities with regard to the request made by any importer seeking for provisional release of the detained goods which has been detained under section 110-A of the Customs Act, 1962 as in the present case.”

“Whether the petitioner has responded to the Show Cause Notice issued by the Customs Authorities or not is immaterial for the purpose of deciding the application seeking for provisional release of the detained goods under section 110-A of the Customs Act, 1962” the Court said.

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