2017 (7) TMI 82 - HC - Customs

Return of confiscated goods - petitioner was being offered metal scrap rather than nickel-silver scrap, which were confiscated - Held that - At the time of taking release of the materials the petitioner has found that the materials offered for release are not of nickel-silver scrap. They are justified in refusing to receive the materials which were sought to be tendered to the petitioner. The materials offered for release are not the same as those seized - According to the Customs Authorities, 51 lumps are of nickel-silver scrap. If that be so the petitioner is at liberty to receive the delivery of 51 lumps of nickel-silver scrap from the Customs Authorities - petition allowed - decided in favor of petitioner.

Summary

Issues:
Petitioner seeking delivery of nickel-silver scrap confiscated by authorities; Disputed questions of fact regarding the quality of materials seized; Discrepancy in the type of materials offered for release; Valuation of the confiscated materials for compensation.

Analysis:
The judgment addressed the petitioner's request for the return of 5058.9 kgs of nickel-silver scrap confiscated by authorities. The petitioner claimed that the materials seized were nickel-silver scrap, as confirmed by the Supreme Court's order directing their release. However, upon attempting to take delivery, the petitioner discovered that the offered materials were metal scrap, not nickel-silver scrap, leading to a refusal to accept them.

The court considered the disputed questions of fact raised by the department, emphasizing that the materials had been tested and confirmed as nickel-silver scrap during the confiscation proceedings. It was noted that the parties had previously accepted and acted upon the fact that the seized materials were indeed nickel-silver scrap, precluding a contradictory stance post-confiscation.

Regarding the valuation of the confiscated materials, the court rejected the department's argument that the valuation set during adjudication should apply at the time of release. Instead, it directed the Customs Authorities to deliver 51 lumps of confirmed nickel-silver scrap to the petitioner and compensate for the remaining materials based on the value of nickel-silver scrap as of the Supreme Court's order date.

In conclusion, the court ordered the Customs Authorities to provide the specified materials and compensation within four weeks, resolving the case without costs. The judgment clarified the parties' positions, upheld the findings of the confiscation proceedings, and determined the compensation based on the value of the materials at the relevant time.