Karnataka High Court
The Commissioner Of Customs vs M/S Vaibhav International on 30 June, 2025
Author: S.G.Pandit
Bench: S.G.Pandit
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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.
...APPELLANT
(BY SRI. ARAVIND KAMATH, ASGI FOR
SRI UNNIKRISHNAN M., ADV.)
Digitally signed
by
MARIGANGAIAH AND:
PREMAKUMARI
Location: HIGH M/S. VAIBHAV INTERNATIONAL
COURT OF REP. BY SOLE PROPRIETOR,
KARNATAKA 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.
...RESPONDENT
(BY SRI. KIRAN S JAVALI, SR. COUNSEL FOR
SRI SHASHWATH S PRAKASH, ADV. FOR C/R)
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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.
...APPELLANT
(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.
...RESPONDENT
(BY SRI. KIRAN S JAVALI, SR. COUNSEL FOR
SRI SHASHWATH S PRAKASH, ADV.)
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.
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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:
THE COMMISSIONER OF CUSTOMS
CITY CUSTOMS COMMISSIONRATE
CR BUILDING, QUEENS ROAD
BANGALORE - 560001.
...APPELLANT
(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.
...RESPONDENT
(BY SRI. KIRAN S JAVALI, SR. COUNSEL FOR
SRI SHASHWATH S PRAKASH, ADV. C/R)
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
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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
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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.
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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
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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:
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
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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
