2018 (2) TMI 2099 - HC - Customs

Detention of goods - Betel Nuts - Perishable goods - Petitioner's defence appears to be that the goods are not imported goods, but such as have been produced inside the country, therefore, the custom authority has no jurisdiction to detain or seize the same - HELD THAT - While the aforesaid issue may be properly gone into in adjudication proceedings which are yet to be undertaken, at this stage, the goods being perishable in nature may not be detained by the custom authority any further. Accordingly, goods in question may be released in favour of the petitioner, subject to its furnishing security in the shape of bank guarantee for the full value of the goods as disclosed in the invoice. Petition disposed off.

Summary

Issues involved: Detention of goods during transportation; Jurisdiction of custom authority over goods produced inside the country; Release of goods subject to security.

Detention of goods during transportation: The judgment addresses a writ petition challenging the detention order of betel nuts being transported from West Bengal to New Delhi. The petitioner argues that the goods are not imported but produced domestically, questioning the jurisdiction of the custom authority to detain or seize them. The court acknowledges that the issue of whether the goods are imported or domestically produced requires adjudication. However, considering the perishable nature of the goods, the court orders the release of the goods in favor of the petitioner upon furnishing a bank guarantee for the full value of the goods as mentioned in the invoice. The security must be provided to the satisfaction of the custom authority within two weeks for the release of the goods and the vehicle.

Jurisdiction of custom authority over goods produced inside the country: The petitioner's defense revolves around the argument that the goods in question are not imported but produced within the country, challenging the custom authority's jurisdiction to detain or seize them. The court does not conclusively determine the jurisdictional issue in the writ petition but allows for a proper adjudication in subsequent proceedings. By ordering the release of the goods subject to security, the court balances the need for further investigation into the jurisdictional aspect while addressing the immediate concern of the goods' perishable nature.

Release of goods subject to security: The judgment emphasizes the release of the detained goods upon the petitioner furnishing a bank guarantee as security for the full value of the goods mentioned in the invoice. This condition is imposed to ensure that the goods are released promptly while safeguarding any potential liabilities or claims that may arise in the future. The court's directive for the security to be provided within a specified timeframe underscores the importance of expeditiously resolving the matter and facilitating the release of the goods and the accompanying vehicle. The judgment effectively balances the interests of the petitioner and the custom authority by allowing for the release of the goods while preserving the opportunity for a detailed examination of the jurisdictional issue in subsequent proceedings.