2016 (10) TMI 669 - HC - Customs

Release of containers lying in container freight station - export consignment of muriate of potash (MOP) - export in violation of provisions of customs law - Held that - The problem has now arisen for the petitioner because the containers are being detained by the Directorate of Revenue Intelligence/ Customs Department in the respective container freight stations owned and established by the first respondent. Admittedly, the containers have not been confiscated, but only the goods were confiscated and the confiscation is absolute. In such circumstances, the Directorate of Revenue Intelligence/ Customs Department should take immediate steps for destuffing the containers and releasing the containers, especially when the Order in Original ordering confiscation has been passed as far back as on 29.2.2012. Direction to the Competent Authority of the Customs Department/Directorate of Revenue Intelligence to consider the petitioner s request and order for de-stuffing the cargo and deal with the same in the manner as decided by them and also for release of the containers within a period of twelve weeks. The containers have been lying in the premises for a long period of time and no rent has been paid so far. The learned counsel have got a working sheet to show the amount of rent due and payable - the Customs Department/Directorate of Revenue Intelligence shall also endeavour to assist the respective container freight stations for recovery of the rent due and payable. As the importer has been found guilty, they could be made liable for payment of rental dues. Petition disposed off - decided partly in favor of petitioner.

Summary

Issues:
- Seizure and confiscation of export consignment
- Detention of containers by Directorate of Revenue Intelligence/Customs Department
- Request for release of containers
- Payment of rent for containers

Seizure and Confiscation of Export Consignment:
The Directorate of Revenue Intelligence conducted a search and seized an export consignment of muriate of potash (MOP) in violation of Customs Law. An Order in Original dated 29.2.2012 was passed confiscating the seized quantity and imposing penalties on the exporter and another individual. The order of absolute confiscation became final, leading to the detention of containers at container freight stations.

Detention of Containers by Directorate of Revenue Intelligence/Customs Department:
The petitioner, as the owner of the containers, filed writ petitions seeking the release of containers detained by the Directorate of Revenue Intelligence/Customs Department at container freight stations. Although the goods were confiscated, the containers were not. The judgment emphasized the need for immediate destuffing of containers and their release, considering the finalized order of confiscation issued in 2012.

Request for Release of Containers:
The High Court disposed of the writ petitions with a direction to the Competent Authority of the Customs Department/Directorate of Revenue Intelligence to consider the petitioner's request for de-stuffing the cargo and releasing the containers within twelve weeks from the date of the order. The judgment highlighted the responsibility of the authorities to take necessary steps for the release of containers following the confiscation of goods.

Payment of Rent for Containers:
The counsel for the container freight stations informed the court that the containers had been lying at their premises for an extended period without rent payment. The judgment directed the Customs Department/Directorate of Revenue Intelligence to assist the container freight stations in recovering the rent due, suggesting that the importers found guilty could be made liable for the rental dues. The container freight stations were instructed to submit a claim for rental dues to the Customs Department for further action.