2022 (2) TMI 310 - HC - Customs

Provisional release of goods - alleged misclassification of the Product - HELD THAT - the entire amount claimed by the respondents had already been paid by the petitioner voluntarily and not under protest - A perusal of the order styled as Provisional release order dated 03.12.2021 would clearly indicates that the same travels well beyond and letter and spirit of the earlier orders passed by this Court as well as the submissions made on behalf of the respondents by its learned counsel, that too on instructions from the respondents. The Provisional release order dated 03.12.2021 being ex-facie illegal and arbitrary being contrary and diametrically opposite to the earlier orders passed by this Court, the same deserves to be quashed, though no prayers are sought for in this regard in the present petition, particularly when the said order has been passed during the pendency of this petition and in the teeth of the earlier orders passed by this Court - in view of the aforesaid orders passed by this Court on 19.11.2021 and 26.11.2021, the impugned orders deserve to be quashed and the respondents are liable to release the goods forthwith in favour of the petitioner without any further delay and close the proceedings as well as other consequential proceedings pursuant to the impugned orders in terms of the aforesaid earlier orders passed by this Court. The petition is hereby allowed.

Summary

Issues:
Petition seeking quashing of Detention Memo and Seizure order, direction to accept payment already made, legality of Provisional release order.

Analysis:
1. Quashing of Detention Memo and Seizure Order:
- Petitioner sought quashing of Detention Memo dated 31.08.2021 and Seizure order dated 16.09.2021 along with consequential proceedings.
- Petitioner already paid &8377; 1,85,21,891.40 towards duty and interest, which was acknowledged by the respondents.

2. Acceptance of Payment Already Made:
- Respondents confirmed that the amount paid by the petitioner fully satisfied the differential duty demand, interest, and penalty.
- Petitioner voluntarily deposited the amount and not under protest, leading to the direction for release of goods by the court.

3. Legality of Provisional Release Order:
- Provisional release order dated 03.12.2021 was challenged by the petitioner as being beyond the earlier court orders and submissions made by the respondents.
- The court found the provisional release order to be illegal and arbitrary, contrary to previous orders, and thus quashed it despite no specific prayer in the petition.

4. Court's Decision and Directions:
- The court allowed the petition, quashing the Detention Memo, Seizure order, and the Provisional release order.
- Directed the respondents to consider the amount already paid as full satisfaction of claims, release goods promptly, and close all proceedings related to tax, interest, and penalty within a week.

In conclusion, the court's judgment favored the petitioner by quashing the impugned orders and the provisional release order, emphasizing the voluntary payment made by the petitioner and directing the respondents to release the goods promptly and conclude all related proceedings without further delay.