Madras High Court: In an appeal filed by Customs Department under Clause 15 of the Letters Patent against the interim order dated 17-08-2023, wherein the Court has granted an order of interim direction to Customs Department to assess and release of the goods covered under the bill dated 26-06-2023, R. Mahadevan, J. has directed the Customs Department to release the subject goods (fresh apples) on furnishing of bank guarantee to the tune of Rs. 2,25,000/- towards differential duty, by the respondent.
The respondent had imported “fresh apples” originating from New Zealand via Bill dated 26-06-2023, pursuant to the contract entered earlier. According to the Customs Department, the apples imported could be broadly classified into two categories
(i) Cost Insurance Freight (‘CIF’) price above Rs. 50/- per kg.
(ii) CIF price below Rs. 50/- per kg.
As per DGFT Notification dated 08-05-2023, when the CIF value is below Rs. 50/- per kg, then, the import of “fresh apples” shall be treated as “prohibited”. Based on the same, the authority passed the order dated 14-07-2023, confiscating the fresh apples imported under Bill dated 26-06-2023, whose value was below Rs. 50/- per kg, and assessing the same at Rs. 18,61,610.02 under section
Aggrieved, the respondent filed a petition along with miscellaneous petitions, to quash the same and to further direct the Customs department to release the imported goods and to issue detention certificate for waiver of demurrage and container detention charges in terms of Regulation 6(1)(l) of the Handling of Cargo in Customs Areas Regulations, 2009.
When the writ petition came up for hearing on 17-08-2023, following the earlier order of this Court and in view of the stay order against the notification dated 08-05-2023 passed by the Kerala High Court , the Judge has granted an order of interim direction to the Customs Department to assess and release of the goods covered under the bill dated 26-06-2023, as the imported goods are prone to deterioration. Challenging the same, the Customs Department filed the present appeal.
The Court said that having considered the fact that the stay of operation of the notification is in force till date and the same is yet to attain finality and also taking note of the nature of the subject goods viz., fresh apples, which are perishable in nature and are meant for human consumption and also order in Delhi Photocopiers v Commissioner of Customs1, the Court ordered release of the goods to the respondent, however, subject to the condition that the respondent shall furnish bank guarantee to the value of differential duty to be determined by the authority, in order to safeguard the interest of the Department.
Further, it directed the Customs Department to release the subject goods on furnishing of bank guarantee to the tune of Rs. 2,25,000/- towards differential duty, by the respondent.
[Additional Commissioner of Customs v N.C. Alexander, 2023 SCC OnLine Mad 6661, decided on 18-10-2023]
Advocates who appeared in this case :
For Appellant: Advocate K. Umesh Rao
For Respondent: Advocate Sathish Sundar
1. SLP.(C) No.7565 of 2021
