1993 (8) TMI 156 - AT - Customs

Summary

Issues:
1. Determination of entitlement when seized goods are disposed of before release.
2. Consideration of seizure value versus sale proceeds in Customs Act cases.

Analysis:
1. The central issue in this case was the entitlement of a person from whom goods were seized under the Customs Act, 1962, but were later disposed of by the Customs department before release. The question was whether the person is entitled to the value of the goods at the time of seizure or the sale proceeds from the disposal. The case involved goods seized from a business premises under a search warrant and later ordered to be released, but they were disposed of before release under Section 110(1A) of the Act.

2. The appellants argued that the value determined at the time of seizure should be given to them, citing previous decisions in their favor. On the other hand, the respondent contended that as per the law, the sale proceeds should be offered to the party, emphasizing that the disposal was in accordance with Section 110(1A) of the Customs Act. The focus was on the reason to believe the goods were liable for confiscation at the time of seizure, with valuation becoming relevant only during adjudication.

3. The Tribunal analyzed previous cases to determine the relevant factors in such situations. They referenced cases where the value at the time of seizure was not considered relevant, and the value at the time of release or adjudication was upheld. The Tribunal highlighted that the prescribed procedure for disposal under Section 110(1A) was presumed to have been followed in the absence of evidence or contrary plea.

4. Ultimately, the Tribunal held that the appellants were entitled to the sale proceeds of the disposed goods, as ordered by the Addl. Collector, and not the value at the time of seizure. The decision was based on the presumption of regular official acts and adherence to the prescribed procedure for disposal. The Tribunal also addressed specific issues related to the confiscation of video cassettes and waived a penalty imposed on the appellants, while rejecting the appeal and disposing of cross objections filed by the respondents.

5. In conclusion, the judgment clarified the entitlement of parties in cases where seized goods are disposed of before release under the Customs Act, emphasizing the importance of following prescribed procedures and considering the value at the time of release or adjudication rather than at the time of seizure.