T.G. ENTERPRISE Vs. UNION OF INDIA

JUDGEMENT

(1.) These petitions arise in common background. Petitioners attempted to import areca nuts and black pepper claiming Sri Lanka as a point of origination. It is not in dispute that on such goods, as long as the point of origination is Sri Lanka, there are substantial concessions in customs duty. The customs duty is either nil or at heavily reduced rate as compared to the normal duty if the origination of goods is not from any of the neighbouring country with which India has entered into the treaty for such preferential terms.

(2.) Before clearance of goods, the department had preliminary doubt about the true origination of the goods. An inquiry was therefore instituted. During the course of investigation, statements of the importers and several other persons under Sec. 108 of Customs Act were recorded. As per the affidavits filed by the departments, such statements reveal a clandestine attempt to misdeclare the origination of goods as Sri Lanka though the goods originated from Indonesia or Vietnam. According to the departmental authorities, there was thus a clear attempt to evade duty. The goods were seized under seizure memos. The petitioners' request for provisional release came to be rejected upon which, these petitions are filed.

(3.) Learned Counsel for the petitioners submitted that the goods have been detained since long. The demurrage charges have mounted. The adjudication has not yet commenced. Completion will take a long time. Goods are otherwise free for import of course subject to payment of customs duty. The petitioners may be allowed to clear the goods on provisional basis on appropriate terms and conditions. Our attention was drawn to different orders of various High Courts in the country in which, provisional release was permitted under similar circumstances. It was pointed out that mainly the condition imposed was of giving bank guarantee to the extent of 30% of the differential duty and giving bond for the value of goods or in some cases, in excess thereof.