M/S.Henish Overseas v. The Principal Commissioner of Customs(Preventive)

ORDER This Writ Petition has been filed seeking a direction to the respondents to permit the petitioner to re-export the goods, which were originally imported vide (1) Bill of Lading No.031E614743 and the filing of Bill of Entry No.7715889 dated 10.01.2025, the imported goods being., 1366 Rolls of "Textile Fabric Coated Laminated with Plastics", (2) Bill of Lading No.031E614742 and the filing of Bill of Entry No.7729221 dated 11.01.2025, Page3 of 8 the imported goods being., 1367 Rolls of "Textile Fabric Coated Laminated with Plastics" and (3) Bill of Lading No.EGLV143456739883 and the filing of Bill of Entry No.7495798 dated 28.12.2024, the imported goods being., 1341 Rolls of "Textile Fabric Coated Laminated with Plastics".

¶2The learned counsel for petitioner submitted that petitioner had imported fabrics, which have been lying with the respondents from December 2024 and January 2025 onwards. It is submitted that the goods were imported from overseas suppliers and were moved to the warehouse situated inside the Special Economic Zone at M/s.NDR Infrastructure Private Limited., Ponneri Taluk, Chennai. Though the goods were assessed under the Risk Management System, the same were not released on account of an alert issued by the Directorate of Revenue Intelligence (DRI), pursuant to which the goods were examined by the DRI officials, samples were drawn and thereafter the goods were seized on 23.05.2025 and 27.06.2025 for the purpose of further investigation.

¶3It is the case of the petitioner that the samples drawn from the imported goods were tested by the CRCL Laboratory, Delhi and based on the test report, respondents alleged misclassification of the goods under a different Customs Tariff Heading. Petitioner was issued summons under Section 108 of the Customs Act and had appeared before the authorities and produced necessary Page4 of 8 documents including invoices and product specifications. Despite petitioner having co-operated with the investigation, the goods continue to remain under seizure and in the custody of the respondents.

¶4The learned counsel would further submit that due to prolonged detention, petitioner has been incurring heavy demurrage and detention charges and has suffered serious financial hardship. It is also submitted that the overseas supplier has expressed willingness to take back the goods and requested petitioner to re-export the same and accordingly representations were made to the respondents seeking permission for re-export.

¶5It is also submitted by the learned counsel for the petitioner that the continued retention of the imported fabrics without it being used, would result in the fabric being rendered useless. He would also bring to the notice of the Court that the seized fabrics were lying in the Special Economic Zone (SEZ) and not cleared for home consumption. It is also submitted that at this stage, the question

of

misdeclaration

would

possibly

not

arise.

¶6This Court does not propose to go into the above question. But, keeping in view the facts of the present case, this Court is inclined to direct the respondents to permit the petitioner to re-export the goods, keeping in view the submissions which were not in dispute, but these goods have been lying with Page5 of 8 the respondents for more than a year and samples have also been drawn and no useful purpose would be served by continued seizure of the goods.

¶7As a matter of fact, while the learned counsels for the respondents 1 to 4 do not have any serious objection to permitting re-export, however, while petitioner would submit, placing reliance upon the order of the Division Bench of this Court in the case of The Assistant Commissioner of Customs-Imports, Tuticorin and others vs. Mahadev Enterprises made in W.A(MD).No.556 of 2022 dated 23.06.2022, that the re-export may be permitted subject to the condition that he would execute a bond to cover the value of the goods pending adjudication.

¶8The learned counsels for the respondents 1 to 4, on other hand, would submit that in addition to executing the bond, the petitioner shall also furnish a Bank Guarantee.

¶9After submitting for a brief while, the petitioner offered to furnish a bank guarantee in addition to executing a bond equivalent to 5% of the re-determined value, which was also agreed by the learned counsels for the respondents. Page6 of 8

¶10In that view of the matter, this Writ Petition stands disposed of with a direction to the respondents to permit the petitioner to re-export the goods imported vide (i) Bill of Lading No.031E614743 and the filing of Bill of Entry No.7715889 dated 10.01.2025, 1366 Rolls of "Textile Fabric Coated Laminated with Plastics", (ii) Bill of Lading No.031E614742 and the filing of Bill of Entry No.7729221 dated 11.01.2025, 1367 Rolls of "Textile Fabric Coated Laminated with Plastics" and (iii) Bill of Lading No.EGLV143456739883 and the filing of Bill of Entry No.7495798 dated 28.12.2024, 1341 Rolls of "Textile Fabric Coated Laminated with Plastics" subject to the following conditions:

(i) Petitioner shall execute a bond for the total value of the differential duty payable to them;

(ii) Petitioner shall furnish a bank guarantee equivalent to 5% of the re-determined value; and

(iii) On petitioner fulfilling the above two conditions, they shall be permitted to re-export the goods within a period of 12 days from the date of compliance of the above conditions as imposed by this Court. No Costs. 25-03-2026 (1/2) Index: Yes/No Speaking/Non-speaking order ANU Page7 of 8 To

¶1The Principal Commissioner of Customs (Preventive), Chennai III Preventive Commissionerate, No.60, Rajaji Salai, Customs House, Chennai-600 001

¶2The Additional Commissioner of Customs (SEZ-FTWZ) Chennai III Preventive Commissionerate, No.60, Rajaji Salai, Customs House, Chennai-600 001

¶3The Deputy Director (CI), DRI, Headquarters, Directorate of Revenue Intelligence, Plot No.11-B, Institutional Area, Vasant Kunj, New Delhi-110 070

¶4The Inquiry Officer/SIO Directorate of Revenue Intelligence (DRI) 7th Floor, Drum Shaped Building, I.P Bhawan I.P.Estate, New Delhi-110 002 WPoNo.o7178oofo2026 MOHAMMEDoSHAFFIQ,oJ. ANU WPoNo.o7178oofo2026 25-03-2026 (1/2) Page8oofo8

Page1 of 8 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 25-03-2026 CORAM THE HON'BLE MR.JUSTICE MOHAMMED SHAFFIQ M/s.Henish Overseas 10/11, No.353, Mani Mahal Office, No.10/11, Kalbadevi Road, Kalbadevi, Mumbai-400 002 Rep. By its Authorized Signatory Mr.Vicky P. Gidhwani ..Petitioner(s) Vs 1. The Principal Commissioner of Customs (Preventive), Chennai III Preventive Commissionerate, No.60, Rajaji Salai, Customs House, Chennai-600 001 2. The Additional Commissioner of Customs (SEZ-FTWZ) Chennai III Preventive Commissionerate, No.60, Rajaji Salai, Customs House, Chennai-600 001 3. The Deputy Director (CI), DRI, Headquarters, Directorate of Revenue Intelligence, Plot No.11-B, Institutional Area, Vasant Kunj, New Delhi-110 070 4. The Inquiry Officer/SIO Directorate of Revenue Intelligence (DRI) 7th Floor, Drum Shaped Building, I.P Bhawan I.P.Estate, New Delhi-110 002 ..Respondent(s) Page2 of 8 Writ Petition filed under Article 226 of the Constitution of India, seeking issuance of a Writ of Mandamus, directing the respondents herein to consider the case of the petitioner and to permit the re-export of the goods, which was originally imported vide (1) Bill of Lading No.031E614743 and the filing of Bill of Entry No.7715889 dated 10.01.2025, the imported goods being., 1366 Rolls of "Textile Fabric Coated Laminated with Plastics", (2) Bill of Lading No.031E614742 and the filing of Bill of Entry No.7729221 dated 11.01.2025, the imported goods being ., 1367 Rolls of "Textile Fabric Coated Laminated with Plastics" and (3) Bill of Lading No.EGLV143456739883 and the filing of Bill of Entry No.7495798 dated 28.12.2024, the imported goods being., 1341 Rolls of "Textile Fabric Coated Laminated with Plastics", in terms of various judicial pronouncements rendered by various High Courts. For Petitioner(s): Mr.S.Baskaran For Respondent(s): Mr.Harikrishna Junior Standing Counsel for R1 and R2 Mr.M.Santhanaraman Senior Standing Counsel for R3 and R4