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1997 (3) TMI 116

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..... goods in the month of April, 1992, whereas the first consignment was cleared and/or released without any problem. The dispute arose with regard to two consignments. It was on June 8, 1992 that both the consignments were seized by the Customs Authorities. Consequent upon the seizure of this two consignments a show cause notice was issued upon the petitioner calling upon the petitioner to show cause and explain as to why the goods covered by both the consignments be not confiscated in terms of Section 111(d) of the Customs Act, 1962. In the two show cause notices, both dated 26-11-1992 governings the two consignments it was alleged that the goods were imported in contravention of Section 11 of the Customs Act read with Section 3(2) of the Im .....

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..... ods, even though vide a communication dated 11-8-1994 issued by the Assistant Collector of Customs addressed to the petitioner it was decided to allow clearance of the goods on payment of duty and other charges. After the petitioners appear to have received the communication dated 11th August, 1994 the disputes started between the parties with regard to the release of the goods in question minus the petitioners' liability to pay Port and Demurrage Charges. 2.I have heard the learned Advocates of the parties at a great length with regard to the issues involved in this case. Whereas under Section 48 of the Customs Act it is the obligation of the prescribed Authority to dispose of the goods within 45 days if the goods are not cleared by the .....

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..... that the entire exercise done by the Customs Authorities was neither proper nor justified in law, will it be proper still to insist the petitioners on paying Port and Demurrage Charges. Along side this another important question which arises for consideration is as to whether the Port Authority is liable to release the goods in question merely on the issuance of a Retention Certificate by the Customs Authorities, without it being entitled to insist on its right of claiming the Port and Demurrage Charges, notwithstanding the legality of the exercise done by the Customs Authorities. 4.In my view, all these points are of great importance and require detailed consideration and examination. I think, the points are such which require a thoroug .....

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..... es shall intimate this amount both to the petitioners as well as the Customs Authorities. One-third of such amount shall be deposited by the petitioners with the Port Authorities within a period of 2 weeks from the date of intimation of the amount so calculated. The balance two-thirds of such amount so calculated shall be paid by the Customs Authorities to the Port Authorities also within a period of 2 weeks from the date of intimation. On the amount being paid to the Port Authorities in terms of the aforesaid direction, the goods in question shall be released within one week thereafter. 7.The petitioners shall also furnish an undertaking to the effect that if ultimately they fail in the writ application, they shall be liable to pay the D .....

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