TaxTMI 
TaxTMI 
TaxTMI 
Section 144 of the Customs Act, 1962 (‘Act’ for short) gives powers to the proper officer, on the entry or clearance of any goods or at any time while such goods are being passed through the customs area, to take samples of such goods in the presence of the owner thereof, for examination or testing, or for ascertaining the value thereof, or for any other purposes of this Act. After the purpose for which a sample was taken is carried out, such sample shall, if practicable, be restored to the owner, but if the owner fails to take delivery of the sample within three months of the date on which the sample was taken, it may be disposed of in such manner as the 2[Principal Commissioner of Customs or] Commissioner of Customs may direct. No duty shall be chargeable on any sample of goods taken under this section which is consumed or destroyed during the course of any test or examination thereof.
Thus, the provisions of Section 144 of the Act mandates that the proper officer has to draw the samples in the presence of the owner of the goods.
In M/s. Arihant Agro Distillation And Liquid Terminals Limited Versus Union of India & Ors. - 2025 (12) TMI 996 - GUJARAT HIGH COURT, the petitioner imported Distillate Fuel Oil. The Customs Authorities seized the goods imported vide Bill of Entry No. 4764589, dated 27.09.2025. On 30.09.2025, the Customs Authority at Hasira took samples from the petitioner and forwarded the same to Vadodara laboratory. On 06.10.2025 the Directorate of Revenue Intelligence, Jam Nagar took the samples from the petitioner and forwarded the same to the Vadodara. Both the reports were received by the said authorities. The first report, dated 23.10.2025 is in favour of the petitioner. This report opined that the Distillate Fuel Oil meets the requirements of the Distillate Fuel Oil as per the IS 16731/2019. The second report dated 13.10.2025 is against the petitioner. The DRI, Jamnagar opined on the second report that the sample does not comply with IS 16731/2019 in respect of the cloud point and water content. Further the DRI opined the deliberate attempts were made to lower the flash point and elecate the recovery temperature for 95% beyond 370 degrees so that the product did not meet the requirements of High Flash High Speed Diesel.
The petitioner challenged the findings in the second case before the High Court, Gujarat by the present writ petition. The petitioner submitted the following before the High Court-
- The first Lab report cannot be discarded since the same found that the samples met the requirements of the declared product.
- The second report forwarded by the DRI was in contravention of the provisions of Section 144 of the Act.
The Intelligence Officer filed an affidavit on 09.12.2025 in pursuance of the order of High Court on 08.12.2025. The High Court found that irregularity in collecting the samples by the Customs Officers at Hazira and sending the same to the Vadodara Lab. In the order dated 08.12.2025, the High Court directed the DRI to file a fresh affidavit pointing out the names of the officers who had collected the samples and had sent them to the Vadodara laboratory.
The DRI filed a fresh affidavit indicating that the Department sought clarification from the erring officers concerned. The High Court, on investigation report, found that the concerned officers have shrugged from their responsibilities in collecting the samples and denied having collected the samples. Neither of the officers admitted having collected the samples and sent them to Vadodara Laboratory. The High Court further observed from the investigation officer that the sample drawn and sent to the laboratory was not drawn in the presence of proper officer. Therefore, the said sample cannot be considered as authentic sample especially in the context of the intelligence gathered by the DRI. Therefore, the report said that there was a need to draw another representative sample.
The High Court observed that the sample collected by the Customs Officers working at Hazira Office cannot be considered as an authentic sample since the same has not been drawn in the presence of proper officer.
The High Court analysed the provisions of Section 144 of the Act. The High Court observed that the provisions of section 144 of the Act mandates the proper officer has to drawn the samples in the presence of the owner. The said procedure was not complied with in the two occasions.
The High Court asked the Department as to whether there are any other provision or any administrative instructions that enabling the Customs Officers to draw the samples in the absence of the importer. The Department cannot able to answer this query. Further there Further the Department did not make attempts to gather the details of any other director in whose presence the samples were collected by the Customs Officer.
The High Court further observed that the Department did not consider the samples collected by the Customs Officer at Hazira which were drawn in the presence of proper officer as authentic sample whereas the samples collected by DRI in the absence of the owner was considered as authentic. No such procedure of drawing sample is prescribed in the Act. The samples collected in both the cases were collected in the absence of the owner.
The High Court observed that since the initial sample was collected de hors the provisions of Section 144 of the Act, it cannot be relied upon and the subsequent report cannot be invoked for seizing the goods of the petitioner, as it will have no consequences, since at the first instance the samples were collected against the provisions of section 144 of the Act.
The High Court allowed the writ petition. It declares that seizure memo issued by the Department as illegal and quashed and set aside the same. The High Court directed the Department to release the goods of the petitioner. The investigation may be proceeded and an appropriate report fixing the accountability of the erring officers shall be prepared and take relevant action against the erring officers. The High Court further directed the petitioner to file an undertaking before the Customs Authority. It will be open to the department to undertake the necessary exercise under Section 144 of the Act in the presence of the petitioner.