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Issues:
1. Validity of seizing and adjusting deposited moneys by the Collector of Customs. 2. Interpretation of relevant sections of the Customs Act, 1962 regarding duty levies and recovery. 3. Application of section 147 in determining the liability of agents in duty recovery. 4. Comparison of provisions under the Customs Act, 1962 with the Sea Customs Act, 1878. 5. Availability of alternative remedies and the court's jurisdiction in issuing writs. Analysis: Issue 1: Validity of seizing and adjusting deposited moneys The petitioners filed two writ petitions challenging the Collector of Customs' action of seizing and adjusting deposited moneys towards a time-barred claim. The first petition sought a Writ of Prohibition, while the second petition requested a Writ of Certiorari to quash the order. The court noted the actions taken by the Collector and the subsequent filing of the petitions due to the adjustment of the amount. Issue 2: Interpretation of Customs Act provisions The court analyzed the relevant sections of the Customs Act, 1962, particularly Section 12, 28, and 147. It highlighted that duty levies can only be made by authority of law, and the procedure for recovery of unpaid duty is outlined in Section 28. The court emphasized the necessity of serving notices within six months from the relevant date for duty recovery, as prescribed by the Act. Issue 3: Application of section 147 in agent liability Section 147 of the Act addresses the liability of agents in duty recovery. The court explained that recovery from an agent is permissible only if the duty cannot be recovered from the owner, importer, or exporter. However, such recovery must adhere to the provisions of Section 28, ensuring due process in collecting unpaid duties. Issue 4: Comparison with Sea Customs Act, 1878 The court referred to Section 39 of the old Sea Customs Act, 1878, to draw parallels with the current provisions. It discussed the liability to pay customs duty and the bar of limitation for duty recovery. Citing a Bombay High Court decision, the court affirmed that both the liability and the remedy for unpaid duty become extinguished after the specified period. Issue 5: Alternative remedies and court jurisdiction While acknowledging the availability of alternative remedies, the court asserted its jurisdiction to issue writs in cases of unjustified and illegal actions. Despite the lack of exhaustion of alternative remedies, the court deemed the adjustment of the amount as unjustified and allowed the writ petition, setting aside the Collector's order and granting costs to the petitioners. In conclusion, the court upheld the petitioners' challenge against the Collector's actions, emphasizing the importance of procedural compliance and the limitations on duty recovery under the Customs Act. The judgment highlighted the need for adherence to statutory provisions and the court's authority to intervene in cases of unjust actions, ultimately ruling in favor of the petitioners in the second writ petition.
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