CHALISSERY KIRANA MERCHANT Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioners are merchants engaged in the business of trading in agricultural produce like areca nut falling under tariff entry 0802 80 90 of the Customs Tariff Act 1975. The first and second petitioners are partnership firms, whereas the 3rd petitioner is a proprietary concern. The petitioners claim to have been importing areca nuts from different countries for more than a decade and have proven credentials and unblemished track records. All the petitioners have obtained necessary licenses and have Importers and Exporters Code [IEC].

(2.) The grievance is mainly with regard to the course pursued by the authorities of the Customs Department of Cochin, detaining the goods imported by the petitioners from Sri Lanka satisfying concessional rate of duty; and proceeding to have provisional assessment under Section 18 of the Customs Act, with liberty to have the goods released, on satisfaction of 35% of the differential duty as cash deposit. The ground of challenge is that, absolutely no insinuating circumstance, doubt or reason to believe is expressed anywhere in the impugned orders, but for the reference made to some enquiry going on with regard to the import made by some other trader from Sri Lanka.

(3.) With regard to the factual position, it is to be noted that areca nuts are normally leviable to duty @ 108%. But by virtue of the notification No. 26/2000 dated 01.03.2000, only 4% duty is leviable; if the areca nut is of 'Sri Lankan origin' and if the same is supported/substantiated on the basis of certificate of origin issued by the India-Sri Lanka Free Trade Agreement (ISFTA Agreement)