2015 (3) TMI 689 - SC - Customs

Detention of goods meant for export - amount of interest Reason is ₹ 102 crores - Held that - applicant shall submit an undertaking within one week from today that he will deposit an amount of ₹ 40,00,00,000 with the respondent no.1 and he will deposit ₹ 40,00,00,000 within six weeks from today. On such undertaking being given, the items which are lying at the Chennai Port Trust and Bangalore Airport/Customs Depot shall be released on payment of usual duty. - Decided conditionally in favour of assessee.

Summary

Issues: Application for stay of demand of interest and penalty, detention of imported and export goods, undertaking for deposit of amount, release of goods upon deposit, consequences of non-deposit.

The judgment deals with an application for stay of the demand of interest and penalty. The Solicitor General suggested a partial stay on the penalty but required the appellant to pay at least 50% of the interest amount of Rs. 102 crores. The senior counsel for the appellant argued that goods imported and meant for export were detained at Chennai Port Trust and Bangalore Airport/Customs Depot without justification. The court directed the appellant to submit an undertaking to deposit Rs. 40,00,00,000 with the respondent within a week and another Rs. 40,00,00,000 within six weeks. Upon giving the undertaking, the detained items would be released on payment of usual duty. The senior counsel further stated that failure to deposit the stipulated amount would result in the appeal being dismissed and the appellant being liable for legal action. The interlocutory application was disposed of accordingly.