1987 (7) TMI 92 - HC - Customs

Summary

Issues:
1. Confiscation of imported goods by Customs department
2. Appeal to Central Board of Excise and Customs
3. Appeal to Customs Excise and Gold Control Appellate Tribunal
4. Refund of fine paid by importers
5. Issuance of detention certificate by Customs department

Analysis:

1. The petitioners imported industrial fatty acids which were confiscated by the Customs department on the grounds of being banned goods. The goods were detained and later confiscated, but the importers were allowed to pay a fine and clear the goods for home consumption.

2. The petitioners appealed to the Central Board of Excise and Customs, which reversed the Collector's decision, holding the petitioners' contentions valid. However, no order to refund the penalty amount paid was passed at that time.

3. The Collector of Customs appealed to the Customs Excise and Gold Control Appellate Tribunal, which rejected the appeal on the grounds of non-maintainability.

4. The petitioners filed a petition seeking a refund of the fine paid, arguing that the detention of goods was due to the Customs department's wrongful action, not the importers' fault. The court found that the fine was levied without legal authority as the goods were not banned, and thus ordered the refund of the fine with interest.

5. The court held that the Customs department was obligated to issue a detention certificate as the goods were detained at the department's instance, not due to any fault of the importers. Citing a judgment, the court emphasized the duty of Customs authorities to issue a detention certificate in cases where the delay was not due to importer's fault.

6. The court directed the respondents to refund the fine paid by the petitioners with interest and to issue a detention certificate for detaining the goods for trade formalities within specified time frames. No costs were awarded in the circumstances of the case.