2017 (5) TMI 1523 - HC - Customs

High Court orders release of betel nuts seized by Tax Authorities despite Customs clearance, stresses proper authorization

M/s Suswani Industries, Kolkata Versus Commissioner Of Customs (Preventive), Lucknow And 4 Others

The High Court of Allahabad ruled on the detention and seizure of a betel nuts consignment by Commercial Tax Authorities, despite release by the Customs ... Release of Seized goods - Betel Nuts - the aforesaid consignment is not being released and handed over to the petitioner on the ground that Customs Department have directed to keep the same under detention - Held that: - the consignment of goods which has been detained/seized at the behest of the Customs Department shall be released in favour of the petitioner forthwith subject to the petitioner furnishing security other than cash and bank guarantee in respect of the value of ₹ 2,022,435/-, of the goods as disclosed in the tax invoice - petition disposed off. Issues: Detention and seizure of betel nuts consignment by Commercial Tax Authorities despite release, direction by Customs Department to keep it under detention, absence of order for seizure/confiscation by Customs Department, betel nuts not notified under Section 11-A (d) of The Customs Act, 1962, transportation from Kolkata to Delhi, no smuggling involved, release of goods to petitioner upon furnishing security.The judgment by the High Court of Allahabad addresses the detention and seizure of a consignment of betel nuts by the Commercial Tax Authorities, even after its release by the department. The petitioner's counsel argued that the Customs Department directed to detain the consignment without producing any seizure or confiscation order. It was contended that betel nuts were being transported from Kolkata to Delhi and were not among the goods notified under Section 11-A (d) of The Customs Act, 1962, indicating no smuggling activity. The court directed the respondent's counsel to file a counter affidavit within six weeks, with a provision for a rejoinder affidavit within two weeks thereafter. The case was listed for admission/final disposal after this period.Furthermore, the court ordered the immediate release of the detained/seized goods to the petitioner, subject to the condition that the petitioner provides security other than cash or bank guarantee amounting to the value of Rs. 2,022,435 as mentioned in the tax invoice. This decision was made in the absence of any valid order from the Customs Department for the seizure or confiscation of the consignment. The judgment ensures the prompt release of the goods to the petitioner while safeguarding the interests of all parties involved by requiring appropriate security for the value of the goods.