I came across a strange case today wherein a company ‘mistakenly’ exported some goods to India. Does that make any sense? How can someone ‘mistakenly’ export goods? I mean that’s a long process isn’t it.. How can a mistake sustain a long process such as export? Let us find out
So apparently, a Dubai based company had a wild dream about getting an export order from an Indian company and based on this fantasy, they actually exported some healthcare products to India.
When the consignment reached Delhi, the authorities were in a fix. Why?
Because no one had filed bill of entry for these products.. there were no claimants.
The importer Visha Enterprises did not send any remittance for such consignment since they were not aware of the consignment and had not placed an order for the said goods.
That sounds funny right? When the company did not place any order, then how did it land in India?
This perplexed the Indian authorities, and as a result they kept the goods for further examination.
When Dubai company arose from its deep sleep, they realised what blunder they had made.
But it was too late by then.
And what made the matter worse was the fact that the goods exported were prohibited goods under Food Safety and Standards Act, 2006
So, they approached the department stating that the consignment had been wrongly despatched to India and since this was a case of bona fide mistake, requested to allow them to re-export the goods.
But the Additional Commissioner of Customs (Imports) was in no forgiving mood and ordered to confiscate the goods as they were prohibited.
However, he showed some leniency and did not levy any fine or penalty.
Relying on this, the petitioners sought waiver of ground rent and demurrage charges. But this was rejected by the department.
Dept had already waived fine/penalty but now the company wanted waiver of ground rent and demurrage charge as well. Taking advantage of our hospitality you say?
Anyway, aggrieved by this, the petitioners approached the High Court for relief.
The High Court came out in support of the department and rejected the petitioners’ contention that the consignment was wrongly despatched to India and the same was a bonafide mistake.
Relying on a case law, the bench said that the Petitioner would not be entitled to waiver of demurrage/rent charges.
It said that when the petitioner had admitted to the findings that consignment contained prohibited goods, it was liable for confiscation and thus cannot claim waiver of demurrage/rent charges