2019 (4) TMI 1760 - HC - Income Tax

Release of goods seized - goods, which have been seized are custom paid goods duly cleared by the Custom authorities - HELD THAT - We have given several opportunities to the other side to confirm as to whether or not the goods were custom paid, especially after the averments made in paragraph 44 of the Rejoinder Affidavit. We have also verified these questions again; two things are clear; that the Gold Dore Bars, which have been seized were stock-in-trade of the petitioner and have been imported as raw materials and also; that the goods were custom cleared and duty paid. This fact is not denied by the respondent-department. Therefore, goods may now be released to the petitioner. As an interim measure, it is directed that the goods of the petitioner may be released after proper verification and identification of the goods to the satisfaction of the authority concerned within next ten days without demanding any security. On all other facts, it will be open to the authorities concerned to proceed against the petitioner in the regular assessment proceeding in accordance with law. Admit. List for hearing in due course. A detailed counter affidavit may be filed by the Department.

Summary

Issues Involved:
Release of seized goods, verification of custom payment, interim measure for releasing goods, further proceedings against petitioner.

Release of Seized Goods:
The judgment addresses the issue of goods seized by the authorities. The court notes that the goods in question, Gold Dore Bars, were the stock-in-trade of the petitioner and were imported as raw materials. It is established that these goods were custom cleared and duty paid, a fact not denied by the respondent-department. Consequently, the court orders the release of the goods to the petitioner without demanding any security, subject to proper verification and identification within the next ten days.

Verification of Custom Payment:
The court emphasizes the importance of confirming whether the seized goods were custom paid. Despite opportunities given to the respondent-department to provide such confirmation, it is ultimately verified that the goods were indeed custom cleared and duty paid. This verification plays a crucial role in the decision to release the goods to the petitioner.

Interim Measure for Releasing Goods:
As an interim measure, the court directs the release of the petitioner's goods within the next ten days without requiring any security. This decision is made in light of the verified information regarding the custom payment status of the goods. The court ensures that the release is subject to proper verification and identification to the satisfaction of the relevant authority.

Further Proceedings Against Petitioner:
While allowing the release of the goods, the court clarifies that the authorities are still permitted to proceed against the petitioner in regular assessment proceedings as per the law. The judgment indicates that the release of goods is an interim measure, and the authorities retain the right to take further action against the petitioner based on other facts in the case. A detailed counter affidavit is also directed to be filed by the Department for future proceedings.

In conclusion, the judgment primarily focuses on the release of seized goods belonging to the petitioner after verifying that they were custom cleared and duty paid. It provides an interim measure for the release of goods without demanding security, subject to proper verification, while allowing for further proceedings against the petitioner in accordance with the law.