2002 (3) TMI 57 - HC - Customs

Summary

Issues Involved:
The issue involves the unauthorized auction of confiscated goods by the Customs Department during the pendency of an appeal, leading to financial loss to the petitioner.

Judgment Details:

1. The petitioner imported a design workstation with scanner, etc., and the Customs Department confiscated the goods. The Commissioner enhanced the value of the goods, which were later auctioned without the petitioner's knowledge during the appeal process.

2. The petitioner argued that the auction of confiscated goods violated the Customs Act, specifically Section 126, which states that confiscated goods vest in the Central Government. The petitioner sought compensation for the loss caused by the unauthorized auction.

3. Referring to legal precedents, the court emphasized that confiscated goods cannot be auctioned without the appellate court's permission. The court criticized the Customs Department for not diligently discharging its duties and directed them to issue a circular to prevent such unauthorized auctions in the future.

4. The court ordered the respondents to refund the declared value of the confiscated goods, amounting to Rs. 26,28,904.00, to the petitioner with nine percent interest per annum from the date of the unauthorized auction. The Customs official undertook to ensure payment within six weeks.

5. The court concluded the judgment by disposing of the writ petition, stating that no further directions were necessary in this matter.