1994 (1) TMI 153 - SC - Customs

Summary

Issues Involved:
The issues involved in the judgment are the High Court's intervention in seizure and confiscation proceedings, the right of respondents to export goods during statutory adjudication, and the protection of respondents' interests during the legal process.

High Court's Intervention in Seizure and Confiscation Proceedings:
The High Court intervened by granting an interdiction of further proceedings and directing the release of seized goods. The Division Bench further allowed the respondents to export the goods during the statutory adjudication. The Supreme Court set aside both orders and dismissed the Writ Petition before the High Court. The statutory adjudication is directed to be completed within 45 days from 1st February, 1994.

Right of Respondents to Export Goods During Statutory Adjudication:
The respondents claimed they could export the goods by paying a fine in lieu of confiscation. However, the Supreme Court emphasized that seizure and confiscation proceedings are in rem, and any right to export goods is contingent on the outcome of the adjudication process. The Court stated that legal proceedings cannot be compromised for the sake of expediency.

Protection of Respondents' Interests During Legal Process:
The Supreme Court directed the statutory adjudication to be completed promptly and specified that the respondents must appear before the authority without further notice. The authority is instructed to consider the respondents' claim to redeem the goods by paying a fine in lieu of confiscation. If the goods are returned, the respondents may be allowed to export them. The respondents are also granted the right to pursue statutory appeals against the adjudication.

Disposition:
The special leave petition is disposed of by the Supreme Court, affirming the directions provided in the judgment regarding the completion of statutory adjudication and the protection of respondents' interests.