C/SCA/170/2025 ORDER DATED: 26/09/2025 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/SPECIAL CIVIL APPLICATION NO. 170 of 2025 With R/SPECIAL CIVIL APPLICATION NO. 843 of 2025 ========================================================== M/S AVALANCHE OVERSEAS PVT.LTD. Versus UNION OF INDIA & ORS. ========================================================== Appearance: MR VIRAT G POPAT(3710) for the Petitioner(s) No. 1 MR ANKIT SHAH(6371) for the Respondent(s) No. 1,2,3 NOTICE SERVED for the Respondent(s) No. 1 ========================================================== CORAM:HONOURABLE MR. JUSTICE BHARGAV D. KARIA and HONOURABLE MR. JUSTICE PRANAV TRIVEDI Date : 26/09/2025 ORAL ORDER (PER : HONOURABLE MR. JUSTICE BHARGAV D. KARIA) 1. Heard learned advocate Mr. Virat Popat for the petitioner and learned advocate Mr. Ankit Shah for the respondent. 2. By this petition under Articles 226 and 227 of the Constitution of India, the petitioner has prayed that the respondents may be directed to release C/SCA/170/2025 ORDER DATED: 26/09/2025 the consignment of Industrial Oil contained in 12 containers which are retained under the Bill of Lading Nos. NLOJEAMUN074444 and DXB0897104A. 3. Brief facts of the case are as under: 3.1 The petitioner placed an order for mineral industrial oil in the month of July,2024 which was confirmed by the Exporter. The petitioner also made 100% advance remittance for the import of the goods in question. 3.2 The exporter at United Arab Emirates dispatched the goods in the month of October 2024 which reached the port at India during the same month. Page 2 of 11 C/SCA/170/2025 ORDER DATED: 26/09/2025 3.3 However, a public notice was issued by the respondent No.2 on 27.09.2024 clarifying that the petroleum products are not allowed to be imported in Flexi-bags as per the clarification issued by the Petroleum and Explosives Safety Organization (‘PESO’ for short). 3.4 The petitioner filed Bill of Entry with the Custom Department when the goods arrived from UAE in the month of October, 2024 and paid the duty on the basis of self-assessment. However, the respondent No.2 did not permit release of the containers on the ground that the goods in question imported by the petitioner were in C/SCA/170/2025 ORDER DATED: 26/09/2025 Flexi-bags which is not permitted as per the public notice dated 27.09.2024. The petitioner has therefore, preferred this petition for appropriate direction. 4. This Court passed the following order on 08.01.2025: “Heard learned advocate Mr. Virat G. Popat for the petitioner. Learned advocate Mr. Virat Popat for the petitioner submitted that respondent no.2 has issued a Public Notice No.08/2024 dated 27.09.2024 on the basis of clarification issued by the Petroleum and Explosives Safety Organization (PESO). It was submitted that however as per Rules 3, 4 and 5 of the Petroleum Rules, 2002, only the Chief Controller can approve the specifications of the containers C/SCA/170/2025 ORDER DATED: 26/09/2025 for petroleum products - Class- A, B and C. It was therefore, submitted that respondent no.2 could not have issued the public notice on the basis of clarification of PESO clarifying that flexi bags fitted in general purpose 20 feet containers are not covered under the definition of “container” falling under the Petroleum Rules, 2002. It was submitted that as per the definition of “container” contained in Rule 2A(viii) means a receptacle for petroleum not exceeding 1000 litres in capacity and it does not refer to the flexi bags fitted in the container. It was further submitted that the petitioner has already placed an order for import of mineral hydrocarbon oil on 4.07.2024 and 100% payment is already made on 29.07.2024 prior to issuance of public notice and therefore, the import made by the petitioner ought to have been permitted by respondent no.2 for clearance. It was further submitted that Facility Notice No. 02/2024 dated 01.11.2024 ought to have extended the cases of import C/SCA/170/2025 ORDER DATED: 26/09/2025 where the orders have already been placed and payment has been made instead of applying the public notice of the goods gated-in on 27.09.2024 only. Considering the above submissions, issue notice returnable on 22nd January, 2025. Direct service through email is permitted.” 5. In compliance of the above order, respondent No.2-authorities filed affidavit-in-reply on 14.02.2025 contending inter alia that stopping of import of petroleum products in Flexi- bags is in the interest of public safety and other 13 importers sought re-export of their imported Flexi-bags consignments after the public notice dated 27.09.2024 was issued. Page 6 of 11 C/SCA/170/2025 ORDER DATED: 26/09/2025 6. The petitioner thereafter, filed draft amendment to join PESO as respondent No.3 which was allowed by order dated 07.08.2025. The petitioner also made a representation before the respondent- authority with a request to transfer the goods imported by the petitioner in a safe manner from Flexi-bags to the container which shall not be in Flexi-bags and the container shall be certified according to the Petroleum Act, 1934 and allied Rules by following the safety standard. 7. The matter thereafter, was adjourned from time-to-time. 8. Learned advocate Mr. Ankit Shah appearing for respondent Nos. 2 and 3 C/SCA/170/2025 ORDER DATED: 26/09/2025 submitted that appropriate order and direction may be issued by this Court then only the respondent-authority shall permit the petitioner to transfer the goods in question from Flexi-bags to the containers as requested by the petitioner by representation dated 12.06.2025. 9. It is pertinent to note that learned advocate Mr. Ankit Shah appears for both the respondents Principal Commissioner of Customs and PESO. 10. In view of the above submission, we direct the respondent-authorities to permit the petitioner to transfer the goods in question from Flexi-bags to the container under the supervision C/SCA/170/2025 ORDER DATED: 26/09/2025 and guidance of the officers of the PESO in the tanker in accordance with the Petroleum Act and the Rules made therein, as requested by the petitioner in the representation dated 12.06.2025. The petitioner shall file an undertaking before this Court to abide by all the rules and directions to be issued by the concerned officer of the PESO and once the goods are transferred in a container according to the directions of PESO officer in consonance with the provisions of the Petroleum Act,1934 and allied Rules framed therein, respondent No.2-Custom Officer is directed to release the goods after following the due process in accordance with law. Such exercise C/SCA/170/2025 ORDER DATED: 26/09/2025 shall be completed within a period of two weeks from today. 11. As these directions are to be issued at the request of respondent Nos.2 and 3, the cost of transfer of the material by the petitioner, from Flexi-bags to the containers as specified in the Petroleum Act, 1934 and allied Rules, shall be borne by respondent Nos.2 and 3. 12. Learned advocate Mr. Virat Popat, under instructions, submitted that the cost of transfer would be approximately Rs. 1.5 lakh. Therefore, respondent Nos. 2 and 3 are directed to reimburse the actual cost on submission of the requisite proof of C/SCA/170/2025 ORDER DATED: 26/09/2025 payment made by the petitioner for transfer of the material as per the directions issued in this order. 13. Both the petitions are accordingly disposed of. Notice is discharged. (BHARGAV D. KARIA, J) (PRANAV TRIVEDI,J) JYOTI V. JANI Original copy of this order has been signed by the Hon'ble Judges. Digitally signed by: JYOTIBEN VINODKUMAR JANI(HC00213), PRINCIPAL PRIVATE SECRETARY, at High Court of Gujarat on 26/09/2025 15:27:20