2012 (3) TMI 702 - HC - Customs

Summary

Issues involved:
The issues involved in the judgment are the refund of the value of betel nuts, confiscation under Customs Act, 1962, appeal before CEGAT, release of goods, and refund of penalty/fine.

Refund of Betel Nuts Value:
The petitioner filed a writ petition seeking a refund of the value of betel nuts amounting to Rs.21,33,500.00 along with statutory interest. The betel nuts and truck were seized based on the belief of being of foreign origin, leading to a confiscation order. However, the CEGAT allowed the appeal, directing the refund. The Commissioner of Customs accepted the CEGAT's order but failed to refund the amount, leading to the writ petition for redressal.

Confiscation under Customs Act, 1962:
The Customs Officers seized the betel nuts and truck, initiating a proceeding under section 111(d) and section 115 of the Customs Act, 1962. The order of absolute confiscation was passed, which was later set aside by the CEGAT due to wrong assumptions by the adjudicating authority. The subsequent appeal and dismissal of the tax case affirmed the CEGAT's decision.

Appeal before CEGAT and Release of Goods:
The petitioner appealed before the CEGAT, which found the adjudicating authority's assumptions to be incorrect, leading to the allowance of the appeal. The Commissioner of Customs ordered the release of goods and refund of penalties imposed. However, delays and lack of action by the authorities prompted the petitioner to file the writ petition for relief.

Refund of Penalty/Fine:
The petitioner repeatedly claimed a refund of the amount equal to the seizure value, as per the CEGAT's order. The Commissioner of Customs accepted the CEGAT's order but failed to refund the amount promptly, leading to the petitioner seeking redress through the writ petition.

Conclusion:
The High Court allowed the writ petition, directing the Commissioner of Customs to refund the amount of Rs. 21,33,500.00 along with statutory interest from the date of the petitioner's appeal. The Court also permitted the Customs Department to take action against responsible employees/officers for the mishandling of the case and loss to the public exchequer.