2009 (8) TMI 669 - HC - Customs

Seizure Value of truck seized- .- The truck owned by the petitioner was intercepted on 9-8-2009 and 301.21 Kilograms of Chinese Silk Yarn, a contraband goods was found to be concealed between the bundles of laminated jute bags. Truck sold for Rs. 3,31,000 for which contention that punch value at time of seizure was Rs. 60,000. petitioner not claiming return of truck but only refund of amount. Tribunl reduced the redemption fine and penalty. Held that- partly allow the appeal by directing to refund the amount of Rs. 2,61,000.

Summary

Issues:
1. Confiscation and sale of a truck carrying contraband goods.
2. Appeal against the confiscation order.
3. Petitioner seeking refund and challenging penalty imposition.
4. Legality of auctioning the vehicle before adjudication order.
5. Claim for refund based on the value of the truck.
6. Justification for retaining balance amount from sale proceeds.
7. Reduction of personal penalty imposed on the petitioner.

Analysis:
1. The case involved the confiscation of a truck carrying contraband goods, specifically Chinese Silk Yarn, concealed within jute bags. The truck was seized by custom authorities, and a show cause notice was issued to the petitioner, resulting in the confiscation of the vehicle and imposition of a penalty.

2. During the adjudication proceedings, the truck was sold before the final order, leading to subsequent appeals. The Tribunal reduced the redemption fine and penalty, which was further upheld by the High Court. The petitioner, upon intending to deposit the reduced amount for release, discovered that the truck had already been sold.

3. The petitioner filed a writ petition seeking a refund of the balance amount from the sale proceeds, deducting the redemption fine and penalty, and challenging the imposition of a personal penalty. The petitioner argued that auctioning the vehicle before the adjudication order was illegal.

4. The respondent contended that the authorities were empowered to sell seized vehicles before the adjudication order under a Notification issued by the Central Government. The Court noted that the petitioner did not seek the return of the truck but claimed a refund based on the truck's value at the time of seizure.

5. The Court analyzed the value of the truck, considering depreciation since its purchase in 1995. The petitioner's claim that the punch value of Rs. 6,00,000 should be considered was rejected. The Court found no justification for the authorities to retain the balance amount after deducting fines and penalties from the sale proceeds.

6. Regarding the personal penalty, the Court upheld the Tribunal's decision to reduce it to Rs. 20,000, which was affirmed in the High Court's earlier judgment. Consequently, the Court partially allowed the writ petition, directing the respondent to refund the balance amount from the sale proceeds to the petitioner.

7. The Court ordered the refund of Rs. 2,61,000 to the petitioner within a month and stated that each party would bear its own costs, considering the circumstances of the case.