2012 (1) TMI 78 - HC - Customs

Writ petition filed to seek an order in the nature of mandamus commanding the respondents to release the containers to the petitioner - shipping company - 40 containers having 20,000 bags of MOP of Fertilizer Grade of customer seized by the Customs Authorities - petitioner is pressing for release of containers after unloading the goods contained therein - Additional Commissioner (Customs) vide order dated 11.10.2010 had asked the Container Corporation of India Ltd, Noida to keep seized goods in the warehous in safe custody and release the containers to the concerned shipping line Held that - Additional Commissioner (Customs) should take appropriate steps for keeping the seized goods in the safe custody and for releasing the 40 containers to the petitioner for which the Court thinks that period of one month would be reasonable as more than a year have passed since letter dated 11.10.2010. Further, release of containers should not be taken to mean that the petitioner has been absolved of its liability if any under the provisions of the Customs Act, 1962 or any other enactment, in case the authorities decide to take any action.

Summary

Issues:
Petition seeking mandamus to release containers seized by Customs Authorities.

Analysis:
The petitioner, a shipping company, had released 40 containers to a freight forwarder for transporting Oil Well Chemicals cargo. However, the containers were seized by Customs Authorities on suspicion of transporting restricted commodities. Despite correspondences and legal actions, the containers remained seized for over two years. The petitioner approached the High Court seeking release of the containers. The Court noted that the Customs Authorities had requested the respondent to keep the seized goods in safe custody to facilitate the release of containers to the shipping line. The Court held that if the respondent was unable to keep the goods safely, it was the responsibility of the Customs Authorities to do so. Therefore, the Court directed the Customs Authorities to take necessary steps to keep the seized goods in safe custody and release the containers to the petitioner within a month.

The Court emphasized the importance of unloading the seized goods in the presence of the petitioner's authorized representative to avoid disputes regarding the nature and quality of the goods. The Court directed the sealing of a few samples of the goods with joint signatures to facilitate any adjudication proceedings. The Court set a deadline for the release of the containers and instructed the petitioner to provide a certified copy of the order to the Customs Authorities. It was clarified that the release of containers did not absolve the petitioner of any liabilities under the Customs Act or other enactments if the authorities decided to take further action.