2014 (5) TMI 51 - HC - Customs

Importation of Mulberry Silk Fabrics Detention of Consignments Release of Consignments - - Unsuccessful in appeal & Review Held that - Commissioner of Customs passed an order dated November 18 2010 inter alia holding that the Additional Commissioner of Customs was legally correct in dropping the proceedings against the notice Since the application for review was also rejected - There can be no ground for detention of the consignments in question. Submission of department that the petitioner is required to make an application before the Assistant Commissioner (Seizure & Disposal) for release of the goods is difficult to accept -The Department seized the goods - Being unsuccessful in adjudication in appeal or in the review application the Department is obliged to immediately release the goods - Respondent nos. 1 to 3 are directed to forthwith release the consignments - Affidavits not having been called for the allegations in writ petition shall be deemed not to have been admitted Decided in Favour of petitioner.

Summary

Issues:
1. Seizure of imported goods by Customs Authorities.
2. Show cause notice issued under Section 124 of the Customs Act, 1962.
3. Adjudication proceedings and order passed by the Adjudicating Authority.
4. Review application under Section 129D of the Customs Act, 1962.
5. Release of the seized consignments by the Department.

Analysis:

1. The petitioner imported 17 consignments of Mulberry Silk Fabrics from China, which were seized by Customs Authorities after being brought to Howrah and kept at the Railway Parcel Shed. The consignments were assessed to duty before being seized.

2. A show cause notice was issued under Section 124 of the Customs Act, 1962, to the owner of the unclaimed goods, mentioning the provisions of Sections 111(b) & (d) for confiscation and Section 112 for imposing penalties. The petitioner replied to the notice, and adjudication proceedings commenced.

3. The Adjudicating Authority, after hearing both parties, passed an order dropping the proceedings against the petitioner. The Authority held that the 16 cartons of silk claimed by the petitioner were not confiscable under Section 111(d) of the Customs Act, 1962. However, 1 carton was confiscated as there was no claimant.

4. The Department applied for a review of the Adjudicating Authority's order under Section 129D of the Customs Act, 1962. The Commissioner of Customs upheld the decision of dropping the proceedings against the petitioner, and the review application was rejected.

5. The Court directed the Department to release the consignments in question immediately, emphasizing that the Department's obligation to release the goods arises after being unsuccessful in adjudication, appeal, or review application. The petitioner was not required to make a separate application for release.

6. The writ application was disposed of, with a directive for the immediate release of the consignments within one week. The Court clarified that the allegations in the writ petition were not deemed admitted due to affidavits not being called for.

7. The Court ordered the supply of an urgent certified copy of the judgment to the parties upon compliance with all formalities.