2012 (9) TMI 746 - HC - Customs

Writ petition - For restraining the respondent-authorities to auction the confiscated items under the provision of Customs Act - to destroy the aforementioned betel nut alleged that smuggling of betel nuts in collusion with Patna Custom Authorities - petitioner further submitted that in these circumstances the Central Government through Chief Commissioner, Customs (Preventive), directed the Central Board of Excise & Customs not to sell such confiscated items in public auction as they were sensitive commodities prone to smuggling and to offer it to Kendriya Bhandar and NCCF only Held that - There is no Kendriya Bhandar in Patna and hence earlier such betel nuts were provided to NCCF for selling it in retail to Co-operative Societies under the authorities, but subsequently started selling it to big concerns like the Kanpur Manufacturers, which were preparing hazardous and harmful items like Paan Masala and Gutka etc. - petitioner has been unable to substantiate and validly show from the statements made in the writ petition that his interest had suffered or any right has been taken away or he had been affected in any manner whatsoever by the impugned action of the respondent-authorities. He has also failed to prove by any valid material that he had ever been purchaser of betel nuts from Kendriya Bhandar or NCCF - writ petition dismissed.

Summary

Issues:
Petition for restraining auction of confiscated items under Customs Act, mandamus to destroy seized betel nuts, disciplinary action against Commissioner, legality of auction process, involvement of government organizations in sale.

Analysis:
The petitioner sought relief to restrain auction of confiscated items under the Customs Act and mandamus to destroy seized betel nuts due to concerns of smuggling and health hazards. The petitioner highlighted the smuggling of betel nuts into India from Nepal by organized gangs and the involvement of Kanpur Gutka Manufacturers, emphasizing the health risks associated with adulterated betel nuts in products like Gutka and Paan Masala. The Central Government's directives were cited, instructing against public auction of sensitive commodities prone to smuggling and recommending offering them to government organizations like Kendriya Bhandar and NCCF. The betel nuts in question were reported to be adulterated, leading to a call for destruction or re-exportation based on relevant rules.

The respondents argued that the auction process followed prescribed procedures, including testing and grading of betel nuts before disposal. They contended that the betel nuts were recommended for E-Auction only after being found unadulterated in a Kolkata laboratory test. The absence of procedural misconduct or illegality was asserted, stating that the petitioner did not participate or raise objections during the auction process. The authorities maintained that the auction was conducted transparently, allowing participation from interested parties, including the petitioner.

The Court observed that the respondents had acted in accordance with rules and government instructions, especially considering the absence of Kendriya Bhandar and alleged illegal activities of NCCF. It was noted that the petitioner failed to substantiate any harm caused by the auction process or prove his standing as a purchaser from government organizations. The Court deemed the petitioner's involvement as unwarranted interference without legal entitlement, dismissing the writ petition for lack of merit.

In conclusion, the Court found no legal basis to entertain the writ petition, dismissing it based on the lack of substantiated claims of harm or legal standing by the petitioner. The judgment upheld the actions of the authorities in following prescribed procedures for the auction of confiscated betel nuts, emphasizing transparency and adherence to relevant rules and directives.