1 BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED: 12.12.2011 C O R A M THE HONOURABLE MR.JUSTICE T.RAJA W.P.(MD)No. 13876 of 2011 M/s.The Mehta Industries, rep. by its Partner Mr.Anil Mehta, The Mehta Buildings, New No.898, Sirukulam Road, Sivakasi - 626 123. ... Petitioner Vs. 1.The Commissioner of Customs, Custom House, New Harbour Estate, Tuticorin - 628 004. 2.The Additional Commissioner of Customs(Imports), Custom House, New Harbour Estate, Tuticorin - 628 004. 3.The Deputy Director, Office of the Directorate of Revenue Intelligence, Roche Road, Solin Garden, South Beach Road, Tuticorin - 628 004. ... Respondents Prayer: Writ Petition filed under Article 226 of the Constitution of India to issue a Writ of Mandamus directing the respondents herein to release the goods viz., 68.50 MTS of Slack Wax, imported vide Bill of Entry No. 5245989 dated 21.11.2011 on the value declared by the petitioner at USD 23,975.70 (FOB) totally, and pass such further or other orders as this Court may deem fit and proper in the circumstances of the case. For Petitioner : Mr.A.K.Jeyaraj For Respondent : Mr.R.Aravindan Standing Counsel O R D E R The petitioner, M/s.The Mehta Industries, represented by its partner, has come to this Court for filing the present Writ Petition praying for issuance of Writ of Mandamus to direct the respondents herein to release the goods viz., 68.50 MTS of Slack Wax, imported vide Bill of Entry No. 5245989 dated 21.11.2011 on the value declared by the petitioner at USD 23,975.70 (FOB) totally and also to pass appropriate orders. 2. The petitioner Mehta Industries had imported 68.50 MTS Slack wax from M/s.Remel International F.Z.E., Sharjah, U.A.E., through invoice NO. RI-TMI/6/1390 dated 24.9.2011. After the consignment in goods reached the Tuticorin port, the petitioner submitted his BIll of Entry No. 5245989 https://hcservices.ecourts.gov.in/hcservices/ 2 dated 21.11.2011 seeking to clear his goods for home consumption by properly declaring the value of the goods at USD 29,23979.70 totally for 68.50 MTS and USD 350.00 per MT (FOB). 3. The learned counsel for the petitioner further submitted that the petitioner's bill of entry was forwarded to the third respondent for verification of the real value of the goods in question. But the third respondent came to the conclusion that the goods in question imported through bill of entry has not been properly valued and as the petitioner said to have undervalued the goods, they declined to provisionally release the goods. However, it was contented that during the course of preliminary enquiry, some statement have been taken from the petitioner on 27.9.2011 under threat to accept the undervaluation of the goods. 4. Adding further he stated that the third respondent during the course of preliminary investigation has also obtained from the petitioner a demand draft for Rs.10 lakhs towards the alleged differential duty payable to the respondent. Since there was a duress and coercion employed against the petitioner over immediate payment of Rs.10 lakhs, the petitioner being a regular importer had purchased a demand draft for Rs.10 lakhs on 22.9.2011. But even after receipt of the said demand draft for Rs.10 lakhs on 22.9.2011, the respondents had declined to release the goods and adding fuel on fire they have not even returned the demand draft for Rs.10 lakhs. Assailing the said action in procuring the demand draft for Rs.10 lakhs, It has been submitted that when the goods are freely importable and when there is no specific restriction for importing the said goods, the respondents cannot decline to release the goods when the petitioner is prepared to pay 30% of the differential duty to be fixed by the respondent department. 5. Mr.Aravindan, learned standing counsel appearing for the respondents would submit that when the respondents have seized certain incriminated documents including the original invoice showing the value of the goods as USD 1000 per Metric ton if the petitioner is prepared to come forward to pay 30% of the differential duty declared by the respondent, the respondents may not have any difficulty in provisionally releasing the goods subject to the petitioner filing usual affidavit to cooperate with the future departmental proceedings. 6. It is not in dispute that the goods in question imported by the petitioner through Bill of entry No.5245989 dated 21.11.2011 being slack wax are freely importable goods. While the petitioner has admittedly imported the freely importable goods and for the reason that the petitioner is also prepared to pay 30% of the differential duty declared by the respondent subject to another condition that the petitioner will file an affidavit of undertaking to cooperate with the departmental proceedings, this Court is inclined to direct the respondent to release the goods in question subject to the compliance of the following conditions: (i) The petitioner shall deposit with the authorities the custom duty payable on the value declared by him. (ii) The petitioner further deposits with the authorities 30% of the differential duty between the declared value and value provisionally assessed by the respondent. (iii) The petitioner shall furnish personal bond to the satisfaction https://hcservices.ecourts.gov.in/hcservices/ 3 of the respondent department in respect of the remaining 70% of the differential duty. (iv) The authorities shall assess and complete the provisional assessment and pass orders of provisional release within a period of 10 days from the date of compliance by the petitioner of the directions given by this Court. This Writ Petition is ordered with the above terms. Subsequently, connected M.P.s are closed. No costs. Sd/- Assistant Registrar (A.E) /True Copy/ Sub Assistant Registrar To 1.The Commissioner of Customs, Custom House, New Harbour Estate, Tuticorin - 628 004. 2.The Additional Commissioner of Customs(Imports), Custom House, New Harbour Estate,Tuticorin - 628 004. 3.The Deputy Director, Office of the Directorate of Revenue Intelligence, Roche Road, Solin Garden,South Beach Road, Tuticorin - 628 004. + 1 cc to Mr.A.K.Jeyaraj, Advocate, SR No.43389 + 1 cc to Mr.R.Aravindan, Advocate, SR No.43526 W.P.(MD)No. 13876 of 2011 12.12.2011 ses RJ/23.12.11 3p/6c https://hcservices.ecourts.gov.in/hcservices/