The High Court
Case Details
- 1 - NC: 2025:KHC:22907-DB WA No. 770 of 2025 C/W WA No. 780 of 2025 WA No. 781 of 2025 HC-KAR IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 30TH DAY OF JUNE, 2025 PRESENT THE HON'BLE MR. JUSTICE S.G.PANDIT AND THE HON'BLE MR JUSTICE T.M.NADAF WRIT APPEAL NO.770/2025 (T-CUS) C/W WRIT APPEAL NO.780/2025 AND WRIT APPEAL NO.781/2025 (T-CUS) IN WA NO.770/2025 BETWEEN: THE COMMISSIONER OF CUSTOMS CITY CUSTOMS COMMISSIONERATE CR BUILDING, QUEENS ROAD BENGALURU-560001.
Legal Reasoning
(BY SRI. ARAVIND KAMATH, ASGI FOR SRI UNNIKRISHNAN M., ADV.) AND: M/S. VAIBHAV INTERNATIONAL REP. BY SOLE PROPRIETOR, JITENDRA KUMAR CHAJER, AGED ABOUT 42 YEARS, S/O BIMAL KUMAR NO.402 PID NO 28-95-8/26 2ND FLOOR, NO.8, KEMPEGOWDA ROAD BHOOMIKA THEATER, GHANDINAGAR BENGALURU -560009. Digitally signed by MARIGANGAIAH PREMAKUMARI Location: HIGH COURT OF KARNATAKA …APPELLANT (BY SRI. KIRAN S JAVALI, SR. COUNSEL FOR SRI SHASHWATH S PRAKASH, ADV. FOR C/R) …RESPONDENT - 2 - NC: 2025:KHC:22907-DB WA No. 770 of 2025 C/W WA No. 780 of 2025 WA No. 781 of 2025 HC-KAR THIS WRIT APPEAL IS FILED U/S 4 OF THE KARNATAKA HIGH COURT ACT PRAYING TO I) TO ALLOW THE ABOVE APPEAL FILED BY THE APPELLANT THEREBY SETTING ASIDE THE ORDER PASSED BY THE LEARNED SINGLE JUDGE IN WP NO. 33823/2024 (T-CUS), DATED 29.04.2025 AND CONSEQUENTLY DISMISS THE SAID PETITION, IN THE INTEREST OF JUSTICE AND EQUITY AND ETC. IN WA NO.780/2025 BETWEEN: THE COMMISSIONER OF CUSTOMS CITY CUSTOMS COMMISSIONERATE, CR BUILDING, QUEENS ROAD, BANGALORE – 560001. (BY SRI. ARAVIND KAMATH, ASGI FOR SRI UNNIKRISHNAN M., ADV.) AND: M/S. HOPE IMPEX REPRESENTED BY PROPRIETOR SATISH KUMAR R AGED ABOUT 36 YEARS, S/O RAJI NO.44, ABBAYAPPA COMPOUND, NEAR KARNATAKA BANK CHANNASANDRA BENGALURU-560007. ...APPELLANT (BY SRI. KIRAN S JAVALI, SR. COUNSEL FOR SRI SHASHWATH S PRAKASH, ADV.) ...RESPONDENT THIS WRIT APPEAL IS FILED U/S 4 OF THE KARNATAKA HIGH COURT ACT PRAYING TO I) TO ALLOW THE ABOVE APPEAL FILED BY THE APPELLANT THEREBY SETTING ASIDE THE ORDER PASSED BY THE LEARNED SINGLE JUDGE IN WP NO.33855/2024 (T-CUS), DATED 29.04.2025, AND CONSEQUENTLY DISMISS THE SAID PETITION, IN THE INTEREST OF JUSTICE AND EQUITY AND ETC. - 3 - NC: 2025:KHC:22907-DB WA No. 770 of 2025 C/W WA No. 780 of 2025 WA No. 781 of 2025 HC-KAR IN WA NO.781/2025 BETWEEN: ...APPELLANT THE COMMISSIONER OF CUSTOMS CITY CUSTOMS COMMISSIONRATE CR BUILDING, QUEENS ROAD BANGALORE - 560001. (BY SRI. ARAVIND KAMATH, ASGI FOR SRI UNNIKRISHNAN M., ADV.) AND: M/S. V V ASSOCIATES (UNREGISTERED) REPRESENTED BY ITS PARTNER MR. NACHIMUTHU VIJAY KUMAR, AGED ABOUT 49 YEARS, S/O NACHIMUTHU NO.106/B, 46TH CROSS ROAD RAJAJINAGARA, BENGALURU - 560010. (BY SRI. KIRAN S JAVALI, SR. COUNSEL FOR SRI SHASHWATH S PRAKASH, ADV. C/R) ...RESPONDENT THIS WRIT APPEAL IS FILED U/S 4 OF THE KARNATAKA HIGH COURT ACT PRAYING TO I) TO ALLOW THE ABOVE APPEAL FILED BY THE APPELLANT THEREBY SETTING ASIDE THE ORDER PASSED BY THE LEARNED SINGLE JUDGE IN WP NO.33844/2024 (T-CUS), DATED 29.04.2025, AND CONSEQUENTLY DISMISS THE SAID PETITION, IN THE INTEREST OF JUSTICE AND EQUITY AND ETC. THESE APPEALS, COMING ON FOR ORDERS, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE S.G.PANDIT AND HON'BLE MR JUSTICE T.M.NADAF - 4 - NC: 2025:KHC:22907-DB WA No. 770 of 2025 C/W WA No. 780 of 2025 WA No. 781 of 2025 HC-KAR ORAL JUDGMENT (PER: HON'BLE MR. JUSTICE S.G.PANDIT) The above three writ appeals are by Commissioner of Customs/respondents before the Writ Court, questioning the interim order dated 29.04.2025 passed by the learned Single Judge directing release of imported consignment i.e., imported roasted Areca Nuts. 2. Heard learned Additional Solicitor General of India Sri.K.Aravind Kamath along with learned Central Government Counsel Sri.M.Unnikrishnan for appellants/Custom Authorities and learned senior counsel Sri.Kiran S. Javali for Sri.Shashwath S. Prakash, learned counsel for respondents/petitioners. Perused the entire writ appeal papers. 3. Learned Additional Solicitor General of India Sri.K.Aravind Kamath would submit that learned Single Judge could not have directed release of imported consignment i.e., Areca Nuts without any condition or - 5 - NC: 2025:KHC:22907-DB WA No. 770 of 2025 C/W WA No. 780 of 2025 WA No. 781 of 2025 HC-KAR security as required under Section 110A of the Customs Act, 1962 (for short, ‘1962 Act’). He would submit that the Custom Authorities dispute the case of the petitioners that it is roasted Areca Nuts. Learned Additional Solicitor General of India would further submits that to determine the tariff, the goods imported would fall under Chapter- VIII and not under Chapter-XX as contended by the petitioners. Further, he submits that the Areca Nuts are being imported by making misclassifications. Further, he submits that the respondents i.e., the petitioners before the Writ Court on release of the goods, may disappear and it would be difficult for the custom authorities to recover the duty and penalty. Therefore, learned Additional Solicitor General of India would submit that for release of the consignment, petitioners shall be put on certain conditions or furnish bank guarantee to the value of the consignment. He submits that the duty assessed in all the three petitions is around Rs.86 Crores. Thus, he prays for allowing the writ appeals. - 6 - NC: 2025:KHC:22907-DB WA No. 770 of 2025 C/W WA No. 780 of 2025 WA No. 781 of 2025 HC-KAR 4. Per contra, learned senior counsel Sri.Kiran S. Javali for respondents would submit that the imported consignment is roasted Areca Nuts and it would fall under Chapter-XX of the Custom Tariff and it is further submitted that the duty is Nil. Therefore, the question of putting the petitioners on terms to deposit certain value would not arise. It is further submitted that the consignment i.e., roasted Areca Nuts’ duty would be ‘zero’ in terms of Chapter-XX of the Customs Tariff. Therefore, learned senior counsel would submit that the learned Single Judge was justified in directing release of imported consignment without any condition or deposit. Thus, he prays for dismissal of the appeals. 5. Having heard the learned counsel appearing for the parties and on perusal of the writ appeal papers, we are of the view that in terms of Section 110A, the petitioners/respondents herein could seek for provisional release of goods on furnishing a bond in the proper form - 7 - NC: 2025:KHC:22907-DB WA No. 770 of 2025 C/W WA No. 780 of 2025 WA No. 781 of 2025 HC-KAR with such security and conditions as Adjudicating Authority may require. As submitted by learned Additional Solicitor General of India, the proceedings before the Adjudicating Authority are pending. In view of the specific provision, learned Single Judge, could not have directed release of imported consignment without any security. The contention of both the learned Additional Solicitor General of India as well as learned senior counsel, whether the imported consignment would fall under Chapter-VIII or Chapter-XX is yet to be decided. For release of imported consignment apart from obtaining bond, it would also require security. 6. In the above circumstances, the following:
Decision
ORDER a) The petitioners i.e., respondents herein would be entitled for provisional release of the imported consignment, as directed by the learned Single Judge, subject to giving security of bank guarantee or any other security to the tune of 25% of the value of - 8 - NC: 2025:KHC:22907-DB WA No. 770 of 2025 C/W WA No. 780 of 2025 WA No. 781 of 2025 HC-KAR the imported consignment, in terms of Section 110A of 1962 Act. To that extent, the interim order dated 29.04.2025 is modified. b) We request the learned Single Judge to dispose of the writ petition as expeditiously as possible. c) Accordingly writ appeals stand disposed of. d) In view of disposal of the appeals, all the pending I.As would not survive for consideration. Sd/- (S.G.PANDIT) JUDGE Sd/- (T.M.NADAF) JUDGE NC CT:bms List No.: 1 Sl No.: 12