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Issues Involved:
1. Legality of the seizure of the containers. 2. Validity of the show-cause notice dated 14-8-1998. 3. Petitioner's right to re-export the goods. Issue-wise Detailed Analysis: 1. Legality of the Seizure of the Containers: The petitioner contended that the containers were seized unlawfully by the respondents. The goods were originally dispatched to M/s. Nitu Enterprises in Nepal from Dubai via India. The petitioner argued that there was no intention to import the goods for consumption in India. The goods were shipped based on an agreement with M/s. Nitu Enterprises, which later backed out from the contract and refused to take delivery. The petitioner requested the Customs Authority to permit re-shipment to Dubai, but instead, the goods were seized on the grounds of unauthorized import for consumption in India. The court found no evidence suggesting that the goods were intended for consumption in India. The goods were in transit to Nepal, and the seizure was deemed unjustified. The court noted that the petitioner was a victim of fraud by M/s. Nitu Enterprises and had acted in good faith. 2. Validity of the Show-Cause Notice Dated 14-8-1998: The petitioner argued that the show-cause notice was issued without jurisdiction and lacked material justification. The respondents alleged that the goods were imported for consumption in India and that the letters of credit submitted were false. The court referred to the case of Indian Cardboard Industries Ltd. v. Collector of Central Excise, which outlined circumstances where the court should interfere at the show-cause notice stage, such as when the notice lacks jurisdiction or material justification. The court found that the show-cause notice did not disclose any offense committed by the petitioner. The statements recorded by the Customs Department did not support the allegation that the goods were imported for consumption in India. The court concluded that the show-cause notice was issued without sufficient material justification and should be quashed. 3. Petitioner's Right to Re-export the Goods: The petitioner requested permission to re-export the goods to Dubai to mitigate damages and prevent deterioration. The court found that the petitioner had been cheated by M/s. Nitu Enterprises, which had initially agreed to purchase the goods but later refused to take delivery. The court emphasized that the goods were not imported for consumption in India and were only in transit. The court noted that the petitioner had to pay demurrage charges for the period the goods were lying at the port and that further delay would increase these charges. The court directed the respondents to permit the petitioner to re-export the consignments to Dubai immediately. Conclusion: The court set aside the order of seizure and quashed the show-cause notice dated 14-8-1998. The respondents were directed to allow the petitioner to re-export the consignments to Dubai, emphasizing that the petitioner had acted in good faith and was a victim of fraud by M/s. Nitu Enterprises.
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