The Kerala High Court has directed the customs commissioner to grant detention certificate in terms of Handling of Cargo in Customs Areas Regulations, 2009 to to enable urea importer to claim waiver of ground rent charges.
The bench of Justice Gopinath P. clarified that detention certificate in terms of Handling of Cargo in Customs Areas Regulations, 2009 shall be issued only on the petitioner remitting the amount of the fine and the penalty.
The petitioner/assessee imported a consignment of Urea. According to the petitioner, the Urea imported by the petitioner is not ‘Agricultural Grade Urea’ and is only ‘Technical Grade Urea’.
While Agricultural Grade Urea is prohibited for import except through canalised agencies, Technical Grade Urea can be imported in terms of the provisions contained in the Foreign Trade Policy.
The Urea imported by the petitioner was not cleared by the Customs Authority on the premise that the petitioner was not entitled to import the Urea, as the Urea imported by the petitioner did not fall within the specifications of Technical Grade Urea.
While there was considerable dispute at the Bar regarding the question as to whether the Urea imported by the petitioner falls within the category of Agricultural Grade Urea or Technical Grade Urea, by an interim order, there was a direction to the adjudicating authority to adjudicate the show cause notice issued to the petitioner.
The show cause notice has been adjudicated by order, and it has been found that the Urea imported by the petitioner falls within the category of Agricultural Grade Urea, which is prohibited for import.
The adjudicating authority has directed reclassification of the Urea imported by the petitioner under the Customs Tariff Item No.3102.10.10 and the confiscation of the same under Section 111(d) and Section 111(m) of the Customs Act, 1962.
However, the adjudicating authority allowed redemption of the goods on payment of a fine in lieu of confiscation under Section 125(1) of the 1962 Act. The adjudicating authority also imposed a penalty on the petitioner under Section 112(a)(i) of the Customs Act.
The petitioner contended that the petitioner intends to challenge order by availing statutory remedies, and in the meanwhile, the petitioner will pay the fine and penalty under protest. However, an order may be issued to the department to issue a detention certificate in terms of Handling of Cargo in Customs Areas Regulations, 2009.
The court granted the liberty of the petitioner to challenge the order by availing statutory remedies is left open.
Case Details
Case Title: R. Krishnaprasad Versus Commissioner Of Customs
Case No.: WP(C) NO. 31043 OF 2024
Date: 25/11/2024
Counsel For Petitioner: Aswin Gopakumar
Counsel For Respondent: P.G.Jayashankar
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