2025 (6) TMI 1981 - HC - Customs

Auction of Consignment - The Imported goods were confiscated for classification dispute - Petitioner won the dispute and sought release the goods - The petitioners had sought for inspection of the aforesaid goods which were detained and had been retained with the Container Corporation of India Limited. On such representation being addressed to the Container Corporation of India Limited dated 2nd December 2024 inter alia praying for an inspection of the said goods the Container Corporation had noted on the petitioners communication that as per the records available with them the consignment has been auctioned HELD THAT - Having regard to the peculiar facts made out not only the entire records of the case should be placed before this Court on the returnable date but the respondent Nos. 2, 3, 4 should file a report in the form of an affidavit disclosing the circumstances under which the consignment comprising of the goods forming subject matter of the three bills of entry Nos. 9383344 9383333 and 9383331 all dated 20th April 2017 has been auctioned if at all. List this matter for further consideration in the combined monthly list of July 2025.

Summary

The Calcutta High Court addressed a writ petition filed by partners of M/s Steel Syndicate concerning the import and classification of three consignments of 100% polyester bed/quilt covers ("said goods"). The petitioners initially sought provisional assessment under Section 18(1) of the Customs Act, 1962, with classification under CTR 63041990. Subsequently, a show-cause notice dated 5 August 2017 proposed reclassification under CTH 54075490, demanding Rs. 1,65,99,624/- duty and threatening confiscation (Section 111(m)) and penalties (Sections 112(a)/114(a)).On appeal, the CESTAT (22 March 2024) upheld the petitioners' classification under CTH 6304, rejecting suppression of facts allegations. Despite repeated requests, the detained consignments were neither released nor inspected. A communication to Container Corporation of India Limited revealed the goods had been auctioned on 13 November 2020 without petitioners' knowledge or authorization, which they contested as a surprise.The Court ordered that the entire case record be produced and directed respondent Nos. 2, 3, and 4 to file an affidavit explaining the circumstances of the auction of consignments covered by bills of entry dated 20 April 2017. The matter was adjourned for further consideration in July 2025.