2018 (12) TMI 1906 - HC - Customs

Release of detained goods - black pepper (kali mirch) - cardamom - Prohibited goods or not - Section 110A of the Customs Act, 1962 - HELD THAT - The seizure order nowhere in specific terms make any averment that the goods which are being seized and detained are of third country (foreign origin) which were brought into Nepal and now are being imported in India. Parties are directed to exchange pleadings within three weeks - List for admission/final disposal immediately thereafter.

Summary

Issues:
Challenge to order of seizure/detention under Section 110 of the Customs Act, 1962; Interpretation of Notification prohibiting import of goods from third countries via Nepal; Consideration of goods as prohibited under Customs Act.

Analysis:
The judgment by the High Court of Allahabad addressed the challenge raised by the petitioner against the order of seizure/detention dated 25-11-2018 under Section 110 of the Customs Act, 1962. The petitioner contested the seizure of black pepper and cardamom, arguing that these goods are not prohibited for import from Nepal to India. The petitioner highlighted that the relevant Notification from 22-1-1996 prohibits the import of goods from third countries via Nepal to India. The petitioner emphasized that the seizure order did not specifically state that the goods were of foreign origin brought into Nepal and then being imported into India, raising a crucial point of contention.

The court noted the arguments presented by the petitioner's counsel and the respondent's counsel. The respondent contended, based on the panchnama contents, that the seized goods were of foreign origin and were being unlawfully imported into India. The court recognized the need for a thorough examination to determine whether the seized goods were indeed prohibited under the Notification issued pursuant to Section 11 of the Customs Act, highlighting the significance of establishing the origin and import status of the goods in question.

In light of the complexities involved, the court directed the parties to exchange pleadings within three weeks and listed the matter for admission/final disposal thereafter. Additionally, the court issued an interim order for the immediate release of the petitioner's seized goods by the Commissioner of Customs (Preventive), subject to the petitioner providing a bond and security in the form of a bank guarantee. The court emphasized the prompt release of the goods and instructed the concerned authority not to cause any delays in the process, ensuring the swift resolution of the matter.

In conclusion, the judgment delved into the nuanced interpretation of the Customs Act and the relevant Notification regarding the prohibition of goods imported from third countries via Nepal to India. The court's decision to allow further proceedings for detailed examination and the interim release of the goods underscored the importance of fair adjudication and timely resolution in customs-related disputes.