2012 (9) TMI 349 - HC - Customs

Petition for contempt - impugned seizure and detention order quashed - deliberate and willful non-compliance and violation of order non release the truck and the betel nuts loaded - Held that - From the scheme of the procedure of the seizure, investigation and confiscation it is quite apparent that there is no scope for continuance of the investigation after the seizure and detention of the goods had been quashed by the court of law after considering the merits or otherwise of the claim of the respective parties based on their pleadings and materials. Hence the plea raised on behalf of the opposite parties with respect to investigation and confiscation is absolutely frivolous and ridiculous, to say the least, and had obviously been raised by their counsel merely to save them from the punishment of contempt, which they have clearly committed and continued committing it merely to punish the petitioner for his fault of approaching this Court. As clear from the records that till date the opposite parties are giving effect to the show cause notice dated 18.11.2011 and are not releasing the goods, which is in direct confrontation with the judicial order of this Court dated 14.11.2011 passed which remained in force at least till 25.04.2012 when order of stay was passed in L.P.A. No. 131 of 2012 i.e. for more than five months, although the direction was for immediate release of goods. However, in any view of the matter order of the Assistant Commissioner, Customs dated 18.11.2011 was clearly in the teeth of and in violation of the said order dated 14.11.2011 passed by this Court. Thus Court has no option but to hold the the Assistant/Deputy Commissioner, Customs (Prevention) Division, Forbisganj, District Kishanganj contemner guilty of contempt and punish him with simple imprisonment of three months, which must start within 30 days from the date of passing of this order and also with fine of Rs.2,000.00 which must be paid within 30 days from date of this order in favour of Patna High Court Legal Aid Society as he has orchestrated the things and misconstrued the provisions of law to the detriment of the petitioner merely with the purpose to overreach the order of this Court dated 14.11.2011 passed in C.W.J.C. No. 12197 of 2011 - in favour of assessee.

Summary

Issues Involved:
1. Non-compliance with the court order dated 14.11.2011.
2. Issuance of a show cause notice under section 124 of the Customs Act, 1962.
3. Demand for 100% cash security and bond for release of goods.
4. Contempt of court by the opposite parties.

Detailed Analysis:

1. Non-compliance with the court order dated 14.11.2011:
The petitioner filed for contempt proceedings against the opposite parties for their deliberate and willful non-compliance with the court order dated 14.11.2011, which quashed the seizure and detention of betel nuts and the truck and directed their immediate release. Despite the court's clear directive, the opposite parties failed to comply, leading to the filing of this contempt petition on 13.12.2011.

2. Issuance of a show cause notice under section 124 of the Customs Act, 1962:
The petitioner argued that the show cause notice dated 18.11.2011 was issued improperly as it was in direct contradiction to the court's order quashing the seizure. The opposite parties contended that the notice was issued due to a lack of communication about the court order. However, the court found that the notice was issued after the authorities were aware of the court's decision, thus constituting a violation of the court's order.

3. Demand for 100% cash security and bond for release of goods:
The petitioner highlighted that the opposite parties demanded 100% cash security and a bond for the release of the goods, which was not stipulated by the court's order. The court noted that such a demand was unwarranted and in direct contravention of the order dated 14.11.2011, which mandated the immediate release of the goods without any such conditions.

4. Contempt of court by the opposite parties:
The court found that the opposite parties, particularly the Assistant/Deputy Commissioner, Customs (Prevention) Division, Forbisganj, District Kishanganj, had committed gross contempt by not complying with the court's order and by issuing the show cause notice and subsequent demands. The court held the contemner guilty of contempt and sentenced him to three months of simple imprisonment and a fine of Rs.2,000, to be paid within 30 days, failing which the imprisonment would be extended by one month.

Conclusion:
The court concluded that the actions of the opposite parties were in direct confrontation with the judicial order and constituted contempt. The contemner was punished accordingly, and directions were issued for the immediate compliance of the court's order. Additionally, the court directed that the order be placed before the Central Board of Excise & Customs for consideration of further prosecution under relevant statutes. The case was disposed of with these directions.