2016 (4) TMI 721 - HC - Customs

Confiscation and penalty - Finished leather lying seized for more than a year - permitted to withdraw on payment of redemption fine - Held that - the appropriate course would be to permit the petitioner to furnish a bank guarantee for the entire amount of redemption fine and penalty and for the goods be released to the petitioner. Therefore, it is directed to the petitioner to furnish a bank guarantee in favour of the Department, for the entire amount of redemption fine and penalty as ordered by the Order-in- Original, the goods in question shall be released to the Petitioner. - Petition disposed of

Summary

Issues:
1. Confiscation of export goods by the Joint Commissioner under the Customs Act, 1962.
2. Appeal by the Petitioner against the order of redemption fine and penalty.
3. Stay granted by CESTAT on the Commissioner's order.
4. Writ petition seeking release of goods pending appeal disposal.

Analysis:
Issue 1: The Petitioner, a registered exporter, faced confiscation of export goods by the Joint Commissioner under the Customs Act, 1962, due to non-conformity with stipulations in a Public Notice. The report from CLRI indicated non-satisfaction of norms without specifying the particular norm. Subsequently, an order was passed confiscating the goods but allowing withdrawal on payment of redemption fine and imposing a penalty.

Issue 2: The Petitioner appealed against the order of redemption fine and penalty, leading to the Commissioner quashing the order and directing the release of the consignment. However, the Department filed an appeal with CESTAT, which stayed the Commissioner's order, prompting the Petitioner to file a writ petition seeking the release of goods pending appeal disposal.

Issue 3: The CESTAT granted a stay on the Commissioner's order, creating a situation where the goods remained seized for over a year. The Petitioner expressed willingness to furnish a bank guarantee for the redemption fine and penalty, while the Department sought expedited appeal hearing by CESTAT.

Issue 4: After considering the submissions, the Court decided to allow the Petitioner to furnish a bank guarantee for the entire amount of redemption fine and penalty, directing the release of the goods. The writ petition was disposed of with the condition that the goods would be released upon the Petitioner providing the bank guarantee, subject to any further orders by CESTAT during appeal disposal.