2009 (4) TMI 297 - HC - Customs

Release of goods pending investigation - This petition challenges detention of goods, shipped by the petitioner to India from Hong Kong, by the Directorate of Revenue Intelligence - respondent authorities (UOI) have not been able to lay their hands on any cogent piece of evidence to link the petitioner with any unlawful or illegal activity under any law prevalent. - Despite opportunities having been granted the respondent authorities have not been able to place anything on record as of today except to say that the investigation is yet continuing - In these circumstances, without expressing any opinion on merits of the issue, it would serve the ends of justice if the goods in question are directed to be released while leaving it open to the respondent-authorities to continue their investigation.

Summary

The High Court of Ahmedabad issued a judgment in 2009 that challenged the detention of goods shipped from Hong Kong to India by the petitioner. The petitioner, a trading organization registered in Hong Kong, sent rough diamonds to buyers in India, who later rejected the delivery. The petitioner requested permission to re-ship the goods to Hong Kong, but the Directorate of Revenue Intelligence in Surat detained the consignments without notifying the petitioner. The respondent authorities suspected the transaction could siphon off foreign exchange from India. Despite multiple adjournments, the authorities failed to provide evidence linking the petitioner to any illegal activity. The court ordered the immediate release of the detained goods within 10 days and permitted re-exportation, emphasizing that the authorities could continue their investigation. The petition was allowed without costs.