Court Orders Release of Seized Items, Emphasizes Section 110A Application

The court allowed the release of most seized items upon payment of full duty and an indemnity bond. It directed the petitioner to apply under Section 110 A for the remaining items' release, emphasizing the need for unaffected adjudication proceedings. The court expressed doubts on the legality of confiscating the entire consignment under Section 119, advising further examination by the adjudicating authority without giving a final opinion on the raised issues.

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Issues involved: Seizure of imported goods under Customs Act u/s 111 and 119, challenge to the seizure, release of seized items, legality of confiscation, valuation discrepancy in bill of entries.

Summary:
1. The petitioner filed a petition seeking to quash the seizure of a consignment containing various items, including concealed memory cards, under a panchnama. The department alleged smuggling attempts by the petitioner and another individual.

2. The petitioner challenged the seizure and requested the release of the entire consignment or specific items on provisional terms. The counsel argued that the seizure of the entire consignment was illegal under Sections 111 and 119 of the Customs Act.

3. The counsel contended that the memory cards and refrigerators, excluding the concealed items, were not prohibited goods and could be released upon payment of full duty. Reference was made to Section 110 A of the Act for releasing seized goods pending adjudication.

4. The respondents argued that the petitioner did not apply under Section 110 A and that the entire consignment could be seized under Section 119 as it was used to conceal smuggled goods. They also raised concerns about undervaluation of goods in the bill of entries.

5. The court proposed a solution to release most of the seized items upon payment of full duty, subject to an indemnity bond. It directed the petitioner to apply under Section 110 A for the release of the remaining items and emphasized that final adjudication proceedings should proceed unaffected.

6. The court expressed doubts about the legality of confiscating the entire consignment under Section 119 and advised further examination by the adjudicating authority. It clarified that no final opinion was given on the issues raised, and the adjudication process should continue in accordance with the law.

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