2010 (6) TMI 102 - HC - Customs

Release of vehicle- Commissioner (Appeals) directing for release of vehicle on payment of redemption fine and penalty. Submission that Department contemplating filing of appeal and vehicle cannot be released pending filing of appeal. Department, if wants to keep detaining vehicle, should immediately obtain interim orders from Tribunal. Department cannot file appeal and at same time keep vehicle contrary to directions. Vehicles directed to be released.

Summary

Issues:
1. Non-release of imported car despite order for redemption.
2. Contemplated appeal by the Department affecting release of the vehicle.

Issue 1: Non-release of imported car despite order for redemption
The petitioner imported a car and faced proceedings for recovery of differential duty, fine, and penalty. The Commissioner of Customs (Appeals) issued order Ext. P3, upholding the car's value at Rs. 10,19,174 and granting an option to redeem the vehicle on payment of a fine of Rs. 2,00,000. The penalty imposed on the appellant was also reduced to Rs. 75,000. Despite this order, the petitioner complained that the vehicle was not being released. The court found the Department's argument that they were contemplating filing an appeal and hence could not release the vehicle unpersuasive. The court held that the Department cannot delay the release of the vehicle while taking time to file an appeal. If they wished to detain the vehicle, they should have obtained appropriate interim orders from the Tribunal, which they failed to do in this case. Consequently, the court directed the respondent to release the vehicle to the petitioner upon compliance with the Ext. P3 order. The respondent was further instructed to inform the petitioner of the duty payable within one week, to be promptly settled by the petitioner.

Issue 2: Contemplated appeal by the Department affecting release of the vehicle
The Department, represented by the Senior Standing Counsel, argued that they were considering filing an appeal against the Ext. P3 order, which could affect the release of the vehicle. The court, however, was not convinced by this argument, emphasizing that the Department cannot delay the release of the vehicle pending the filing of an appeal. The court noted that the Department should have taken steps to obtain interim orders from the Tribunal if they intended to continue detaining the vehicle. As the Department failed to do so, the court disposed of the writ petition with a clear direction for the immediate release of the vehicle to the petitioner upon fulfilling the conditions specified in the Ext. P3 order. This decision highlighted the importance of timely action and compliance with judicial directives in matters concerning the release of goods subject to customs proceedings.