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Issues:
Refund of seized poppy seeds, legality of procurement, imposition of penalty, entitlement to interest on refund. Analysis: 1. Refund of Seized Poppy Seeds: The petitioner filed a writ application seeking a refund of Rs. 85,600 for 56 bags of poppy seeds released and a penalty of Rs. 500. Initially, 144 bags of poppy seeds were seized by Customs, out of which 88 bags were deemed legally procured, while the remaining 56 bags were confiscated under the Customs Act, 1962. The appellate authority at Calcutta later held that there was no evidence to prove the poppy seeds were smuggled and allowed the appeal, directing the refund of the amount deposited. Despite the order, the refund was not made promptly, leading to the writ application for refund and interest. 2. Legality of Procurement: The Collector of Customs found that 76 bags were released by Customs at Dimapur and 12 bags at Imphal, accounting for 88 bags legally procured. However, the remaining 56 bags lacked evidence of legal procurement and were confiscated under the Customs Act. The appellate authority emphasized that the absence of evidence linking the seeds to smuggling or non-Indian origin warranted the release of the seeds and the refund of the deposited amount. 3. Imposition of Penalty: The Collector of Customs imposed personal penalties on individuals and a company involved in the sale and transport of the confiscated goods. However, the appellate authority overturned these penalties, stating that there was no proof of smuggling and the seeds were not liable for confiscation. Consequently, the penalties were set aside. 4. Entitlement to Interest on Refund: The petitioner, citing legal precedents, argued for the entitlement to interest on the delayed refund. The court agreed that the delay in refunding the amount warranted the payment of interest at 9% per annum from the date of the refund application to the actual refund date. The respondents were directed to calculate and pay the interest within three months from the receipt of the order. In conclusion, the High Court of Gauhati ordered the refund of the amount for the seized poppy seeds, set aside the imposed penalties, and directed the payment of interest on the delayed refund. The judgment emphasized the need for adherence to appellate orders, the absence of evidence for confiscation, and the entitlement to interest for delayed refunds as per legal principles.
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