2017 (1) TMI 1062 - HC - Customs

Release of goods lying in godown - by the interim order the goods have been ordered to be released to the petitioner, after he executed the necessary bond - This Court has dismissed the writ petition in W.P.No.19150 of 2003 on 04.01.2017 upholding the show cause notice issued by the DRI and directing the authorities to proceed further against the petitioner, withholding the release of goods - writ petition, which is based on the said show cause notice, becomes infructuous and accordingly, the same stands dismissed - decided against petitioner.

Summary

Issues:
1. Direction sought for the release of goods seized by authorities under Customs Act.
2. Alleged diversion of imported stainless steel sheets duty-free under Customs Notification 30/97.
3. Show cause notice issued challenging diversion and violation of conditions.
4. Writ petition filed seeking release of goods and stay of show cause notice.
5. Interim order passed for release of goods upon payment and execution of bond.
6. Dismissal of the initial writ petition upholding the show cause notice.
7. Dismissal of the subsequent writ petition as infructuous due to previous judgment.

Analysis:
1. The petitioner filed a writ petition seeking direction for the release of goods seized by authorities, totaling 39.870 MTS and 6.110 MTS, from his godown under the Customs Act.
2. The case involved an allegation that the petitioner diverted duty-free imported stainless steel sheets under Customs Notification 30/97 to unauthorized places, violating the Duty Exemption Entitlement Certificate Scheme meant for actual users.
3. A show cause notice was issued to the petitioner, challenging the diversion and violation of conditions under Customs Act Section 111(0), leading to the filing of a writ petition for release of goods and obtaining a stay on the notice.
4. An interim order was passed, directing the petitioner to pay a sum, execute a bond, and release the goods, which were subsequently released after compliance.
5. The initial writ petition was dismissed, upholding the show cause notice and instructing authorities to proceed against the petitioner, rendering the subsequent writ petition based on the same notice infructuous.
6. Consequently, the subsequent writ petition was dismissed, and no costs were imposed, closing the connected miscellaneous petition in light of the previous judgment and dismissal of the initial petition.

This detailed analysis outlines the legal proceedings, allegations, orders passed, and the final outcome of the case before the Madras High Court, emphasizing the dismissal of the writ petitions and the release of goods based on compliance with the court's interim order.