Case Note & Summary
The petitioners, NBU Bearings Pvt. Ltd. and another, filed a writ petition under Article 226 of the Constitution of India before the Bombay High Court seeking a writ of mandamus to the Deputy/Assistant Commissioner of Customs (Special Intelligence & Investigation Branch) to revoke the suspension of clearance of a consignment of bearings imported by petitioner No.1 on 05.01.2021, bearing the 'TR' mark/brand. Petitioner No.1 had filed six bills of entry on 04.01.2021 with the customs authorities (respondent Nos. 2 to 5) for clearance. The petitioners asserted that without issuing any order of confiscation and in violation of Rule 7 of the Intellectual Property Rights (Imported Goods) Enforcement Rules, 2007 (IPR Rules) and the provisions of the Copyright Act, 1957, the customs authorities suspended clearance of the imported goods. Aggrieved, the petitioners approached the court for release of the consignment. The court heard submissions from Mr. Venkatesh Dhond, senior counsel for the petitioners; Mr. Vijay Kantharia for respondent Nos. 2 to 5; and Mr. Alankar Kirpekar for respondent No.6. The court examined the relevant facts and the legal framework under the IPR Rules, particularly Rule 7, which mandates a specific procedure for suspension of clearance of imported goods suspected of infringing intellectual property rights. The court found that the customs authorities had not complied with Rule 7, as no order of confiscation was passed and no notice was given to the importer before suspension. The court held that the suspension was illegal and violative of principles of natural justice. Consequently, the court allowed the petition and directed the respondents to revoke the suspension and release the consignment of bearings to the petitioners.
Headnote
A) Customs Law - Suspension of Clearance - Rule 7 of Intellectual Property Rights (Imported Goods) Enforcement Rules, 2007 - Suspension of clearance of imported bearings by customs authorities without issuing any order of confiscation and without complying with the procedure under Rule 7 of the IPR Rules is illegal and violative of principles of natural justice - Held that the suspension must be revoked and goods released (Paras 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48).
Issue of Consideration
Whether suspension of clearance of imported goods by customs authorities without issuing a confiscation order and without complying with Rule 7 of the Intellectual Property Rights (Imported Goods) Enforcement Rules, 2007 is valid.
Final Decision
The court allowed the petition and directed respondent Nos. 2 to 5 to revoke the suspension of clearance and release the consignment of bearings to the petitioners.
Law Points
- Intellectual Property Rights (Imported Goods) Enforcement Rules
- 2007
- Rule 7
- Natural Justice
- Suspension of Clearance
- Copyright Act
- 1957
- Section 53
