1997 (12) TMI 127 - HC - Customs

Issues Involved:
1. Issuance of Writ of Mandamus for the release of goods without demurrage and detention charges.
2. Compliance with Section 110 of the Customs Act.
3. Validity of the seizure and show cause notices.
4. Maintainability of the writ petition under Article 226 of the Constitution of India.
5. Allegations of undue delay and procedural violations by the Customs Department.

Detailed Analysis:

1. Issuance of Writ of Mandamus for the Release of Goods Without Demurrage and Detention Charges:
The petitioner sought a Writ of Mandamus directing the respondent to release and deliver goods covered under various Bills of Entry without insisting on payment of demurrage and container detention charges. The petitioner argued that the goods were incurring heavy demurrage and detention charges and had shown willingness to pay duty if the DEEC duty-free license was not accepted. Despite multiple requests for the provisional release of goods under Section 18 of the Customs Act, the Customs Department did not act on these requests. The petitioner claimed that the prolonged detention had led to the deterioration of the goods, violating Articles 19 and 21 of the Constitution of India.

2. Compliance with Section 110 of the Customs Act:
The petitioner argued that under Section 110 of the Customs Act, goods should not be kept in suspense for more than one year without steps being taken for confiscation. The petitioner claimed that the goods had been detained for more than one year, violating Section 110(2) of the Customs Act. The respondent countered that the writ petition was not maintainable and that any delay was caused by the petitioner. The respondent maintained that show cause notices were issued within six months from the date of seizure, as required by Section 110 of the Act.

3. Validity of the Seizure and Show Cause Notices:
The respondent argued that the seizure and show cause notices were valid and issued within the statutory period. The goods covered under Bills of Entry Nos. 50523, 50525, and 52442 were seized on 4-1-1996, and show cause notices were issued on 22-2-1996. For the remaining Bills of Entry, the respondent claimed that the goods were seized within six months of receiving the Bills of Entry from the Customs House Agent on 1-8-1996, and show cause notices were issued within the statutory period. The petitioner contended that the goods were already in the custody of the Customs Department and that the department could not withhold the goods after the statutory period.

4. Maintainability of the Writ Petition Under Article 226 of the Constitution of India:
The respondent argued that the writ petition was not maintainable under Article 226 of the Constitution of India, as the petitioner had an alternative statutory remedy. The court referred to previous judgments, emphasizing that the exercise of jurisdiction under Article 226 is not warranted when statutory remedies are available. The court noted that the petitioner was seeking to bypass the statutory remedy provided under the Customs Act, which was not just and proper.

5. Allegations of Undue Delay and Procedural Violations by the Customs Department:
The petitioner alleged undue delay by the Customs Department in assessing the duty payable and conducting necessary tests and examinations. The court noted that the delay was caused by the petitioner's non-cooperation and failure to appear before the authorities despite multiple summonses. The court found no undue delay on the part of the Customs Department from the date of filing the Bills of Entry till the date of seizure.

Conclusion:
The court dismissed the writ petition, finding no merit in the petitioner's arguments. The court held that the Customs Department had acted within the statutory period for issuing show cause notices and that the writ petition was an attempt to prolong the adjudication process. The court also dismissed the related miscellaneous petitions seeking the appointment of an independent surveyor and an injunction restraining the respondent from proceeding with the adjudication of the show cause notice.

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