M/S Ballians Agro Food Processing PVT LTD. And Anr vs. Union Of INDIA And Ors
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The petitioners, M/s. Ballians Agro Food Processing Pvt. Ltd. and another, filed a writ petition before the Calcutta High Court. They challenged the inaction of the customs authorities in releasing their imported goods, despite an appellate order passed by the Commissioner of Customs (Appeals) on 8th November 2023. This appellate order had set aside the Order-in-Original dated 04.05.2023, affirmed the classification of goods, set aside the re-determined value, and released the goods for home consumption subject to NOC from FSSAI. Penalties imposed on the importer and its partner were also set aside. The petitioners contended that the goods had not been released by the authorities even after the appellate order. The Customs Authorities stated they had filed an appeal and an application for stay, but no stay had been granted.
Held
The Court held that the Commissioner of Customs (Appeals) had already passed an order on 8th November 2023, and there was no order of stay by any higher authority (Tribunal or Court) against this appellate order. Therefore, the respondent authorities were directed to release the imported goods in favour of the petitioners within a period of fifteen days from the date of the order. The Court found no impediment to the release of goods as per the appellate order. The writ petition was disposed of with these directions. The Court did not expressly leave any issue undecided.
Key Issues
1. Whether the respondent authorities are obligated to release the imported goods in favour of the petitioners in light of the appellate order dated 8th November 2023, passed by the Commissioner of Customs (Appeals), which set aside the Order-in-Original and penalties, and ordered release of goods, in the absence of any stay order on the appellate order? Petitioner's Argument: The petitioners argued that the Commissioner of Customs (Appeals) had passed a favorable order on 8th November 2023, allowing their appeal, setting aside the Order-in-Original, re-determined value, confiscation, and penalties. Despite this clear appellate relief, the customs authorities had failed to release the goods. They sought directions for the immediate release of the imported goods. Revenue's Argument: The learned counsel for the Customs Authorities submitted that an appeal had been preferred against the appellate order, and an application for stay had also been made. However, no stay order had been granted in their favour. They did not explicitly argue against the release of goods but indicated their challenge to the appellate order.
Sections Cited
Section 110(1), Section 112(a)(i), Section 114AA
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OD -5
WPO/671/2024 IN THE HIGH COURT AT CALCUTTA CONSTITUTIONAL WRIT JURI ICTION ORIGINAL SIDE
M/S. BALLIANS AGRO FOOD PROCESSING PVT. LTD. AND ANR. VS UNION OF INDIA AND ORS.
BEFORE : THE HON’BLE JUSTICE RAJARSHI BHARADWAJ
Date : 21st November, 2024
Appearance :
Mr. Arijit Chakrabarti, Adv. Mr. Debaditya Banerjee, Adv. Mr. Syed Wasim Faruque, Adv. For petitioners Ms. Manasi Mukherjee, Adv.(VC) Ms. Aishwarya Rajyashree, Adv. For Customs Authority Mr. P.K. Bhowmick, Adv. Mr. Soumen Bhattacharjee, Adv. For Union of India
The Court : Learned counsel appearing for the petitioners submits that the Commissioner of Customs (Appeals) has passed an appellate order dated 8th November, 2023, which is as follows:- “41. In light of the above considerations, Specifically, CBIC Circular No. 163/19/2021-GST, dated 6-10-2021 issued vide F. No. 190354/206/2021 – TRU, Bag Industries, 2023 (384) E.L.T. 119 (A.A.R. – Cus. – Mum) and Bill of entry no. 3644039 dated 08.12.2022 as submitted by the appellant, I set aside the impugned
2
Order-in-Original No. KOL/CUS/PORT/ADC/54/2023 dated 04.05.2023. I affirm the classification of the imported goods under Customs Tariff Item No. 21069030 as declared by the appellant with benefit of Notification No. 96/2008 dated 13.08.2008. I also set aside the re-determined value, which amounts to Rs.42,37,723.88/-, and order that the imported goods be assessed based on the declared invoice value. The confiscation of the goods is also set aside, and I order the release of the goods for home consumption subject to NOC from FSSAI. I set aside the penalties imposed on the importer, M/s. Ballians Agro Food Processing Pvt. Ltd, under Section 112(a)(i) and Section 114AA of the Customs Act, 1962. Since the imported goods are not liable for confiscation, I also set aside the penalties imposed on Shri Abhishek Gupta, the partner of M/s. Ballians Agro Food Processing Pvt. Ltd, under Section 112(a)(i) and Section 114AA of the Customs Act, 1962. Accordingly, the appeal filed by the appellant is allowed with consequential relief on above terms.” Learned counsel further submits that though the order has already been passed by the Commissioner of Customs (Appeals) way back on 8th November, 2023 but till date the goods have not been released by the authorities.
3
Learned counsel appearing for the Customs Authorities submits that they have preferred an appeal and also made an application for stay but no stay order has been granted in their favour. Heard learned counsel for the parties. As the Commissioner of Customs (Appeals) has already passed his order dated 8th November, 2023 and there is no order of stay by the Tribunal, it is hereby directed to the respondent no.5 being the Deputy/Assistant Commissioner of Customs (Group 1B), Kolkata Customs House, 15/1 Strand Road, Kolkata – 700001 to release the goods imported vide Bills of Entry No. 2815602 dated 10.10.2022, which was confiscated vide Order dated 01.12.2022 in terms of section 110(1) of the Customs Act, 1962, in favour of the petitioners within a period of fifteen days from date. The writ petition being WPO No. 671 of 2024 is thus disposed of. No order as to costs.
(RAJARSHI BHARADWAJ, J.)
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Reproduced from the public record of the Calcutta High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.