Order date – 23 June 2022

Facts-

• The Respondent, M/s. Mahadev Enterprises, is an establishment doing import and export of various commodities, including Arecanut/Betelnuts
• The respondent has imported Betelnuts Products commonly known as unflavored Supari to an extent of 1,35,600 kgs. vide 2 Bills of Lading. As per the declaration given by the respondent the goods imported by the respondent fall under Chapter heading 21069030 and the goods were classified accordingly.
• The Appellant stated that the petitioner has imported goods by wrong classification and sought to levy duty by classifying the goods under Chapter VIII.
• The respondent made strenuous efforts in convincing the appellants that he cannot afford to pay tax by classifying the goods under Chapter VIII. Therefore, the respondent only sought for permission to re-export the goods to mitigate the loss.

Issue-

• Whether Respondent is eligible to re-export unflavoured supari and to avail detention certificate for waiver of demurrage in terms of Regulations 6(1)(1) of the Handling of Cargo in Customs Areas Regulations?
• whether the imported Betelnuts comes under 21069030 or Chapter 21

Order

• The Court ordered the appellants to complete the adjudication process with an option to the respondent to re-export the goods back to the place from where the goods were imported.
• The respondent were directed to execute a bond to the full value of the goods that is sought to be re-exported, without prejudice to the rights or authority of the appellants to proceed further with the investigation and to impose or collect whatever charges that may be permissible under law.
• The court dismissed the Writ Appeal and directed the appellants to permit the respondent to exercise their option.