2019 (12) TMI 1174 - HC - Customs

Principles of natural justice - Inquiry proceedings against Air Cargo Customs Clearing Agent - Mandamus sought directing the respondents not to harass the Petitioner in the guise of enquiry either by personal appearance or search warrant or interfering in the day-to-day business of the Petitioner - HELD THAT - The search of the Head of the Office of the Petitioner-company personally, is challenged. The action on the part of the respondents is quite natural and incidental. Hence, the Petitioner cannot preclude the officials of the respondents from proceeding with their official duty. It is also to be stated that the officials of the respondents also cannot exceed their limit, in the guise of enquiry, by violating the human rights. The respondents have given an undertaking that the Petitioner will not be harassed in the guise of enquiry and investigation, the respondents are directed to conclude the enquiry with the Petitioner and their staff members within a period of one month from the date of receipt of a copy of this order - Petition disposed off.

Issues:
1. Harassment by customs officials in the guise of enquiry.
2. Refusal of customs clearance for shipment of automobile spare parts.
3. Search conducted at the petitioner's office.

Analysis:

Issue 1: Harassment by customs officials in the guise of enquiry
The Writ Petition was filed seeking a Writ of Mandamus to direct the respondents not to harass the Petitioner in the guise of enquiry or interfere in the day-to-day business. The petitioner, an Air Cargo Customs Clearing Agent Company, faced issues with customs clearance for a shipment of automobile spare parts due to alleged overvaluation by the Assistant Commissioner of Customs. The petitioner claimed that the goods were neither prohibited nor unlawful, and the authorities were misusing their power, leading to harassment. The respondents assured the court that the enquiry and investigation would be conducted in accordance with the law and principles of natural justice. The court directed the respondents to conclude the enquiry with the petitioner and their staff within one month, emphasizing that officials should not exceed their limits during enquiries.

Issue 2: Refusal of customs clearance for shipment of automobile spare parts
The petitioner received an order for shipment of automobile spare parts from a new customer, Swiss Global. Despite providing bills and documents, customs clearance was denied by the Assistant Commissioner of Customs, citing overvaluation. The petitioner argued that the goods were lawful and not subject to prohibition, questioning the authority's interference in pricing matters. The respondents claimed that the actions were procedural and not intended to harass the petitioner or their staff. The court acknowledged the search conducted at the petitioner's office and directed the respondents to conclude the enquiry within one month while ensuring no harassment in the guise of enquiry.

Issue 3: Search conducted at the petitioner's office
An additional set of papers, including a mahazar prepared during a search at the petitioner's office, was submitted. The search was conducted in the presence of customs officials, and the respondents defended the action as a natural and incidental part of their duties. The court emphasized that while officials have the right to conduct enquiries, they must not violate human rights or exceed their limits. The court directed the respondents to complete the enquiry within a month, ensuring no harassment during the process.

In conclusion, the court disposed of the Writ Petition, directing the respondents to conclude the enquiry within a specified timeframe and emphasizing the importance of conducting investigations in accordance with the law and principles of natural justice.

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