2021 (11) TMI 207 - HC - Customs

Confiscation of Container - seeking directions against the respondent authority to release the seized container - goods in the container is Methyl Benzene Sulfonate - hazardous goods as per Material Safety Data Sheet or not - HELD THAT - Without entering into the merit and without even, in any manner, touching upon the issue which has been already initiated by the respondent authority in the show cause notice which has been issued upon the petitioner and others, for the disposal of the hazardous material, as the time line given is of three (3) months, the respondent is directed to complete the process by strictly following the rules and regulations in this regard. Noticing the hazardous nature of the goods, let the process be completed at the earliest. An attempt shall be made to dispose it of as far as possible within three (3) months. Petition disposed off.

Summary

Issues:
Petition seeking release of seized container and goods, liability for storage charges, misdeclaration of goods, seizure under Customs Act, disposal of hazardous goods, timeline for disposal.

Release of Seized Container and Goods:
The petitioner, a shipping agent, sought directions to release a container seized along with goods. The cargo was booked for transshipment to Iran but was detained due to suspicion of misdeclaration. The petitioner argued they should not be liable for storage charges or penalties. The Court issued notices, and the respondents claimed the petitioner provided false documents leading to misdeclaration, making them liable for penalties under the Customs Act.

Misdeclaration of Goods and Liability:
The respondents contended that the goods were hazardous and flammable, requiring special handling and storage. They argued that the petitioner's misdeclaration of the cargo led to the exercise of powers under the Customs Act, making them liable for penalties. The Court heard arguments from both sides and required expert instructions on the disposal of the hazardous goods.

Disposal of Hazardous Goods and Timeline:
The Court directed the respondents to complete the disposal process of the hazardous goods within three months, following all rules and regulations. The petitioner agreed not to press certain prayers related to storage charges. Both parties were allowed to approach the Court in case of difficulties, and the judgment was disposed of accordingly, without prejudice to either side.